* The rule that "no dilatory motion shall be entertained by the
Speaker" was also adopted at this time.
With the facilities of action which they now possessed, the Republican leaders had no difficulty in getting rid of the surplus in the Treasury. Indeed, in this particular they could count on Democratic aid. The main conduit which they used was an increase of pension expenditures. President Harrison encouraged a spirit of broad liberality toward veterans of the Civil War. During the campaign he said that it "was no time to be weighing the claims of old soldiers with apothecary's scales," and he put this principle of generous recognition into effect by appointing as commissioner of pensions a robust partisan known as "Corporal" Tanner. The report went abroad that on taking office he had gleefully declared, "God help the surplus," and upon that maxim he acted with unflinching vigor. It seemed, indeed, as if any claim could count upon being allowed so long as it purported to come from an old soldier. But Tanner's ambition was not satisfied with an indulgent consideration of applications pending during his time; he reopened old cases, rerated a large number of pensioners, and increased the amount of their allowance. In some cases, large sums were granted as arrears due on the basis of the new rate. A number of officers of the pension bureau were thus favored, for a man might receive a pension on the score of disability though still able to hold office and draw its salary and emoluments. For example, the sum of $4300 in arrears was declared to be due to a member of the United States Senate, Charles F. Manderson of Nebraska. Finally, "Corporal" Tanner's extravagant management became so intolerable to the Secretary of the Interior that he confronted President Harrison with the choice of accepting his resignation or dismissing Tanner. Tanner therefore had to go, and with him his system of reratings.
A pension bill for dependents, such as Cleveland had vetoed, now went triumphantly through Congress.* It granted pensions of from six to twelve dollars a month to all persons who had served for ninety days in the Civil War and had thereby been incapacitated for manual labor to such a degree as to be unable to support themselves. Pensions were also granted to widows, minor children, and dependent parents. This law brought in an enormous flood of claims in passing, upon which it was the policy of the Pension Bureau to practice great indulgence. In one instance, a pension was granted to a claimant who had enlisted but never really served in the army as he had deserted soon after entering the camp. He thereupon had been sentenced to hard labor for one year and made to forfeit all pay and allowances. After the war, he had been convicted of horse stealing and sent to the state penitentiary in Wisconsin. While serving his term, he presented a pension claim supported by forged testimony to the effect that he had been wounded in the battle of Franklin. The fraud was discovered by a special examiner of the pension office, and the claimant and some of his witnesses were tried for perjury, convicted, and sent to the state penitentiary at Joliet, Illinois. After serving his time there, he posed as a neglected old soldier and succeeded in obtaining letters from sympathetic Congressmen commending his case to the attention of the pension office, but without avail until the Act of 1890 was passed. He then put in a claim which was twice rejected by the pension office examiners, but each time the decision was overruled, and in the end he was put upon the pension roll. This case is only one of many made possible by lax methods of investigating pension claims. Senator Gallinger of New Hampshire eventually said of the effect of pension policy, as shaped by his own party with his own aid:
"If there was any soldier on the Union side during the Civil War who was not a good soldier, who has not received a pension, I do not know who he is. He can always find men of his own type, equally poor soldiers who would swear that they knew he had been in a hospital at a certain time, whether he was or not—the records did not state it, but they knew it was so—and who would also swear that they knew he had received a shock which affected his hearing during a certain battle, or that something else had happened to him; and so all those pension claims, many of which are worthless, have been allowed by the Government, because they were 'proved.'"
* June 27, 1890.
The increase in the expenditure for pensions, which rose from $88,000,000 in 1889 to $159,000,000 in 1893, swept away much of the surplus in the Treasury. Further inroads were made by the enactment of the largest river and harbor appropriation bill in the history of the country up to this time. Moreover, a new tariff bill was contrived in such a way as to impose protective duties without producing so much revenue that it would cause popular complaint about unnecessary taxation. A large source of revenue was cut off by abolishing the sugar duties and by substituting a system of bounties to encourage home production. Upon this bill as a whole, Senator Cullom remarks in his memoirs that "it was a high protective tariff, dictated by the manufacturers of the country" who have "insisted upon higher duties than they really ought to have." The bill was, indeed, made up wholly with the view of protecting American manufactures from any foreign competition in the home market.
As passed by the House, not only did the bill ignore American commerce with other countries but it left American consumers exposed to the manipulation of prices on the part of other countries. Practically all the products of tropical America, except tobacco, had been placed upon the free list without any precaution lest the revenue thus surrendered might not be appropriated by other countries by means of export taxes. Blaine, who was once more Secretary of State, began a vigorous agitation in favor of adding reciprocity provisions to the bill. When the Senate showed a disposition to resent his interference, Blaine addressed to Senator Frye of Maine a letter which was in effect an appeal to the people, and which greatly stirred the farmers by its statement that "there is not a section or a line in the entire bill that will open the market for another bushel of wheat or another barrel of pork." The effect was so marked that the Senate yielded, and the Tariff Bill, as finally enacted, gave the President power to impose certain duties on sugar, molasses, coffee, tea, and hides imported from any country imposing on American goods duties, which, in the opinion of the President, were "reciprocally unequal and unreasonable." This more equitable result is to be ascribed wholly to Blaine's energetic and capable leadership.
Pending the passage of the Tariff Bill, the Senate had been wrestling with the trust problem which was making a mockery of a favorite theory of the Republicans. They had held that tariff protection benefited the consumer by the stimulus which it gave to home production and by ensuring a supply of articles on as cheap terms as American labor could afford. There were, however, notorious facts showing that certain corporations had taken advantage of the situation to impose high prices, especially upon the American consumer. It was a campaign taunt that the tariff held the people down while the trusts went through their pockets, and to this charge the Republicans found it difficult to make a satisfactory reply.
The existence of such economic injustice was continually urged in support of popular demands for the control of corporations by the Government. Though the Republican leaders were much averse to providing such control, they found inaction so dangerous that on January 14, 1890, Senator John Sherman reported from the Finance Committee a vague but peremptory statute to make trade competition compulsory. This was the origin of the AntiTrust Law which has since gone by his name, although the law actually passed was framed by the Senate judiciary committee. The first section declared that "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal." The law made no attempt to define the offenses it penalized and created no machinery for enforcing its provisions, but it gave jurisdiction over alleged violations to the courts—a favorite congressional mode of getting rid of troublesome responsibilities. As a result, the courts have been struggling with the application of the law ever since, without being able to develop a clear or consistent rule for discriminating between legal and illegal combinations in trade and commerce. Even upon the financial question, the Republicans succeeded in maintaining party harmony, notwithstanding a sharp conflict between factions. William Windom, the Secretary of the Treasury, had prepared a bill of the type known as a "straddle." It offered the advocates of free coinage the right to send to the mint silver bullion in any quantity and to receive in return the net market value of the bullion in treasury notes redeemable in gold or silver coin at the option of the Government. The monthly purchase of not less than $2,000,000 worth of bullion was, however, no longer to be required by law. When the advocates of silver insisted that the provision for bullion purchase was too vague, a substitute was prepared which definitely required the Secretary of the Treasury to purchase 4,500,000 ounces of silver bullion in one month. The bill, as thus amended, was put through the House under special rule by a strict party vote. But when the bill reached the Senate, the former party agreement could no longer be maintained, and the Republican leaders lost control of the situation. The free silver Republicans combined with most of the Democrats to substitute a free coinage bill, which passed the Senate by forty-three yeas to twenty-four nays, all the negative votes save three coming from the Republican side.
It took all the influence the party leaders could exert to prevent a silver stampede in the House when the Senate substitute bill was brought forward; but by dexterous management, a vote of non-concurrence was passed and a committee of conference was appointed. The Republican leaders now found themselves in a situation in which presidential non-interference ceased to be desirable, but president Harrison could not be stirred to action. He would not even state his views. As Senator Sherman remarked in his "Recollections," "The situation at that time was critical. A large majority of the Senate favored free silver, and it was feared that the small majority against it in the other House might yield and agree to it. The silence of the President on the matter gave rise to an apprehension that if a free coinage bill should pass both Houses, he would not feel at liberty to veto it."