The Cleveland Era: A Chronicle of the New Order in Politics

by Henry Jones Ford

At this critical moment in the process of social disorganization, the influence of foreign destructive thought made itself felt. The arrival of Johann Most from Europe, in the fall of 1882, supplied this revolutionary movement with a leader who made anarchy its principle. Originally a German Socialist aiming to make the State the sole landlord and capitalist, he had gone over to anarchism and proposed to dissolve the State altogether, trusting to voluntary association to supply all genuine social needs. Driven from Germany, he had taken refuge in England, but even the habitual British tolerance had given way under his praise of the assassination of the Czar Alexander in 1881 and his proposal to treat other rulers in the same way. He had just completed a term of imprisonment before coming to the United States. Here, he was received as a hero; a great mass meeting in his honor was held in Cooper Union, New York, in December, 1882; and when he toured the country he everywhere addressed large meetings.

In October 1883, a convention of social revolutionists and anarchists was held in Chicago, at which a national organization was formed called the International Working People's Association. The new organization grew much faster than the Socialist party itself, which now almost disappeared. Two years later, the International had a party press consisting of seven German, two Bohemian, and only two English papers. Like the Socialist party, it was, therefore, mainly foreign in its membership. It was strongest in and about Chicago, where it included twenty groups with three thousand enrolled members. The anarchist papers exhorted their adherents to provide themselves with arms and even published instructions for the use of dynamite.

Political and industrial conditions thus supplied material for an explosion which came with shocking violence. On May 4, 1885, towards the close of an anarchist meeting held in Chicago, a dynamite bomb thrown among a force of policemen killed one and wounded many. Fire was at once opened on both sides, and, although the battle lasted only a few minutes, seven policemen were killed and about sixty wounded; while on the side of the anarchists, four were killed and about fifty were wounded. Ten of the anarchist leaders were promptly indicted, of whom one made his escape and another turned State's evidence. The trial of the remaining eight began on June 21, 1886, and two months later the death sentence was imposed upon seven and a penitentiary term of fifteen years upon one. The sentences of two of the seven were commuted to life imprisonment; one committed suicide in his cell by exploding a cartridge in his mouth; and four met death on the scaffold. While awaiting their fate they were to a startling extent regarded as heroes and bore themselves as martyrs to a noble cause. Six years later, Illinois elected as governor John P. Altgeld, one of whose first steps was to issue a pardon to the three who were serving terms of imprisonment and to criticize sharply the conduct of the trial which had resulted in the conviction of the anarchists.

The Chicago outbreak and its result stopped the open spread of anarchism. Organized labor now withdrew from any sort of association with it. This cleared the field for a revival of the Socialist movement as the agency of social and political reconstruction. So rapidly did it gain in membership and influence that by 1892 it was able to present itself as an organized national party appealing to public opinion for confidence and support, submitting its claims to public discussion, and stating its case upon reasonable grounds. Although its membership was small in comparison with that of the old parties, the disparity was not so great as it seemed, since the Socialists represented active intelligence while the other parties represented political inertia. From this time on, Socialist views spread among college students, artists, and men of letters, and the academic Socialist became a familiar figure in American society.

Probably more significant than the Socialist movement, as an indication of the popular demand for radical reform in the government of the country, was the New York campaign of Henry George in 1886. He was a San Francisco printer and journalist when he published the work on "Progress and Poverty" which made him famous. Upon the petition of over thirty thousand citizens, he became the Labor candidate for mayor of New York City. The movement in support of George developed so much strength that the regular parties felt compelled to put forward exceptionally strong candidates. The Democrats nominated Abram S. Hewitt, a man of the highest type of character, a fact which was not perhaps so influential in getting him the nomination as that he was the son-in-law of Peter Cooper, a philanthropist justly beloved by the working classes. The Republicans nominated Theodore Roosevelt, who had already distinguished himself by his energy of character and zeal for reform. Hewitt was elected, but George received 68,110 votes out of a total of 219,679, and stood second in the poll. His supporters contended that he had really been elected but had been counted out, and this belief turned their attention to the subject of ballot reform. To the agitation which Henry George began, may be fairly ascribed the general adoption of the Australian ballot in the United States.

The Socialist propaganda carried on in large cities and in factory towns hardly touched the great mass of the people of the United States, who belonged to the farm rather than to the workshop. The great agricultural class, which had more weight at the polls than any other class of citizens, was much interested in the redress of particular grievances and very little in any general reform of the governmental system. It is a class that is conservative in disposition but distrustful of authority, impatient of what is theoretical and abstract, and bent upon the quick practical solution of problems by the nearest and simplest means. While the Socialists in the towns were interested in labor questions, the farmers more than any other class were affected by the defective system of currency supply. The national banking system had not been devised to meet industrial needs but as a war measure to provide a market for government bonds, deposits of which had to be made as the basis of note issues. As holdings of government bonds were amassed in the East, financial operations tended to confine themselves to that part of the country, and banking facilities seemed to be in danger of becoming a sectional monopoly, and such, indeed, was the case to a marked extent. This situation inspired among the farmers, especially in the agricultural West, a hatred of Wall Street and a belief in the existence of a malign money power which provided an inexhaustible fund of sectional feeling for demagogic exploitation.

For lack of proper machinery of credit for carrying on the process of exchange, there seemed to be an absolute shortage in the amount of money in circulation, and it was this circumstance that had given such force to the Greenback Movement. Although that movement was defeated, its supporters urged that, if the Government could not supply additional note issues, it should at least permit an increase in the stock of coined money. This feeling was so strong that as early as 1877 the House had passed a bill for the free coinage of silver. For this, the Senate substituted a measure requiring the purchase and coinage by the Government of from two to four million dollars' worth of silver monthly, and this compromise was accepted by the House. As a result, in February, 1878, it was passed over President Hayes's veto.

The operation of this act naturally tended to cause the hoarding of gold as the cheaper silver was equally a legal tender, and meanwhile the silver dollars did not tend to pass into circulation. In 1885, in his first annual message to Congress, President Cleveland mentioned the fact that, although 215,759,431 silver dollars had been coined, only about fifty million had found their way into circulation, and that "every month two millions of gold in the public Treasury are paid out for two millions or more of silver dollars to be added to the idle mass already accumulated." The process was draining the stock of gold in the Treasury and forcing the country to a silver basis without really increasing the amount of money in actual circulation or removing any of the difficulties in the way of obtaining supplies of currency for business transactions. President Cleveland recommended the repeal of the Silver Coinage Act, but he had no plan to offer by which the genuine complaints of the people against the existing monetary system could be removed. Free silver thus was allowed to stand before the people as the only practical proposal for their relief, and upon this issue a conflict soon began between Congress and the Administration.

At a convention of the American Bankers' Association in September, 1885, a New York bank president described the methods by which the Treasury Department was restricting the operation of the Silver Coinage Act so as to avoid a displacement of the gold standard. On February 3, 1886, Chairman Bland of the House committee on coinage reported a resolution reciting statements made in that address, and calling upon the Secretary of the Treasury for a detailed account of his administration of the Silver Coinage Act. Secretary Manning's reply was a long and weighty argument against continuing the coinage of silver. He contended that there was no hope of maintaining a fixed ratio between gold and silver except by international concert of action, but "the step is one which no European nation... will consent to take while the direct or indirect substitution of European silver for United States gold seems a possibility." While strong as to what not to do, his reply, like most of the state papers of this period, was weak as to what to do and how to do it. The outlook of the Secretary of the Treasury was so narrow that he was led to remark that "a delusion has spread that the Government has authority to fix the amount of the people's currency, and the power, and the duty." The Government certainly has the power and the duty of providing adequate currency supply through a sound banking system. The instinct of the people on that point was sounder than the view of their rulers.

Secretary Manning's plea had so little effect that the House promptly voted to suspend the rules in order to make a free coinage bill the special order of business until it was disposed of. But the influence of the Administration was strong enough to defeat the bill when it came to a vote. Though for a time, the legislative advance of the silver movement was successfully resisted, the Treasury Department was left in a difficult situation, and the expedients to which it resorted to guard the gold supply added to the troubles of the people in the matter of obtaining currency. The quick way of getting gold from the Treasury was to present legal tender notes for redemption. To keep this process in check, legal tender notes were impounded as they came in, and silver certificates were substituted in disbursements. But under the law of 1878, silver certificates could not be issued in denominations of less than ten dollars. A scarcity of small notes resulted, which oppressed retail trade until, in August, 1886, Congress authorized the issue of silver certificates in one and two and five dollar bills.