In this emergency, the Republican leaders appealed to their free silver party associates to be content with compelling the Treasury to purchase 4,500,000 ounces of silver per month, which it was wrongly calculated would cover the entire output of American mines. The force of party discipline eventually prevailed, and the Republican party got together on this compromise. The bill was adopted in both Houses by a strict party vote, with the Democrats solidly opposed, and was finally enacted on July 14, 1890.
Thus by relying upon political tactics, the managers of the Republican party were able to reconcile conflicting interests, maintain party harmony, and present a record of achievement which they hoped to make available in the fall elections. But while they had placated the party factions, they had done nothing to satisfy the people as a whole or to redress their grievances. The slowness of congressional procedure in matters of legislative reform allowed the amplest opportunity to unscrupulous business men to engage, in the meantime, in profiteering at the public expense. They were able to lay in stocks of goods at the old rates so that an increase of customs rates, for example, became an enormous tax upon consumers without a corresponding gain to the Treasury; for the yield was largely intercepted on private accounts by an advance in prices. The Tariff Bill, which William McKinley reported on April 16, 1890, became law only on the 1st of October, so there were over five months during which profiteers could stock at old rates for sales at the new rates and thus reap a rich harvest. The public, however, was infuriated, and popular sentiment was so stirred by the methods of retail trade that the politicians were both angered and dismayed. Whenever purchasers complained of an increase of price, they received the apparently plausible explanation, "Oh, the McKinley Bill did it." To silence this popular discontent, the customary arts and cajoleries of the politicians proved for once quite ineffectual.
At the next election, the Republicans carried only eighty-eight seats in the House out of 332—the most crushing defeat they had yet sustained. By their new lease of power in the House, however, the Democratic party could not accomplish any legislation, as the Republicans still controlled the Senate. The Democratic leaders, therefore, adopted the policy of passing a series of bills attacking the tariff at what were supposed to be particularly vulnerable points. These measures, the Republicans derided as "pop-gun bills," and in the Senate they turned them over to the committee on finance for burial. Both parties were rent by the silver issue, but it was noticeable that in the House which was closest to the people the opposition to the silver movement was stronger and more effective than in the Senate.
Notwithstanding the popular revolt against the Republican policy which was disclosed by the fall elections of 1890, President Harrison's annual message of December 9, 1891, was marked by extreme complacency. Great things, he assured the people, were being accomplished under his administration. The results of the McKinley Bill "have disappointed the evil prophecies of its opponents and in large measure realized the hopeful predictions of its friends." Rarely had the country been so prosperous. The foreign commerce of the United States had reached the largest total in the history of the country. The prophecies made by the antisilver men regarding disasters to result from the Silver Bullion Purchase Act, had not been realized. The President remarked "that the increased volume of currency thus supplied for the use of the people was needed and that beneficial results upon trade and prices have followed this legislation I think must be clear to every one." He held that the free coinage of silver would be disastrous, as it would contract the currency by the withdrawal of gold, whereas "the business of the world requires the use of both metals." While "the producers of silver are entitled to just consideration," it should be remembered that "bimetallism is the desired end, and the true friends of silver will be careful not to overrun the goal." In conclusion, the President expressed his great joy over "many evidences of the increased unification of the people and of the revived national spirit. The vista that now opens to us is wider and more glorious than before. Gratification and amazement struggle for supremacy as we contemplate the population, wealth, and moral strength of our country."
Though the course of events has yet to be fully explained, President Harrison's dull pomposity may have been the underlying reason of the aversion which Blaine now began to manifest. Although on Harrison's side and against Blaine, Senator Cullom remarks in his memoirs that Harrison had "a very cold, distant temperament," and that "he was probably the most unsatisfactory President we ever had in the White House to those who must necessarily come into personal contact with him." Cullom is of the opinion that "jealousy was probably at the bottom of their disaffection," but it appears to be certain that at this time Blaine had renounced all ambition to be President and energetically discouraged any movement in favor of his candidacy. On February 6, 1892, he wrote to the chairman of the Republican National Committee that he was not a candidate and that his name would not go before the convention. President Harrison went ahead with his arrangements for renomination, with no sign of opposition from Blaine. Then suddenly, on the eve of the convention, something happened—exactly what has yet to be discovered—which caused Blaine to resign the office of Secretary of State. It soon became known that Blaine's name would be presented, although he had not announced himself as a candidate. Blaine's health was then broken, and it was impossible that he could have imagined that his action would defeat Harrison. It could not have been meant for more than a protest. Harrison was renominated on the first ballot with Blaine a poor second in the poll.
In the Democratic convention, Cleveland, too, was renominated on the first ballot, in the face of a bitter and outspoken opposition. The solid vote of his own State, New York, was polled against him under the unit rule, and went in favor of David B. Hill. But even with this large block of votes to stand upon, Hill was able to get only 113 votes in all, while Cleveland received 616. Genuine acceptance of his leadership, however, did not at all correspond with this vote. Cleveland had come out squarely against free silver, and at least eight of the Democratic state conventions—in Colorado, Florida, Georgia, Idaho, Kansas, Nevada, South Carolina, and Texas—came out just as definitely in favor of free silver. But even delegates who were opposed to Cleveland, and who listened with glee to excoriating speeches against him forthwith, voted for him as the candidate of greatest popular strength. They then solaced their feelings by nominating a free silver man for Vice-President, who was made the more acceptable by his opposition to civil service reform. The ticket thus straddled the main issue; and the platform was similarly ambiguous. It denounced the Silver Purchase Act as "a cowardly makeshift" which should be repealed, and it declared in favor of "the coinage of both gold and silver without discrimination," with the provision that "the dollar unit of coinage of both metals must be of equal intrinsic and exchangeable value." The Prohibition party in that year came out for the "free and unlimited coinage of silver and gold." A more significant sign of the times was the organization of the "People's party," which held its first convention and nominated the old Greenback leader, James B. Weaver of Iowa, on a free silver platform.
The campaign was accompanied by labor disturbances of unusual extent and violence. Shortly after the meeting of the national conventions, a contest began between the powerful Amalgamated Association of Steel and Iron Workers, the strongest of the trade-unions, and the Carnegie Company over a new wage scale introduced in the Homestead mills. The strike began on June 29, 1892, and local authority at once succumbed to the strikers. In anticipation of this eventuality, the company had arranged to have three hundred Pinkerton men act as guards. They arrived in Pittsburgh during the night of the 5th of July and embarked on barges which were towed up the river to Homestead. As they approached, the strikers turned out to meet them, and an engagement ensued in which men were killed or wounded on both sides and the Pinkerton men were defeated and driven away. For a short time, the strikers were in complete possession of the town and of the company's property. They preserved order fairly well but kept a strict watch that no strike breakers should approach or attempt to resume work. The government of Pennsylvania was, for a time, completely superseded in that region by the power of the Amalgamated Association, until a large force of troops entered Homestead on the 12th of July and remained in possession of the place for several months. The contest between the strikers and the company caused great excitement throughout the country, and a foreign anarchist from New York attempted to assassinate Mr. Frick, the managing director of the company. Though this strike was caused by narrow differences concerning only the most highly paid classes of workers, it continued for some months and then ended in the complete defeat of the union.
On the same day that the militia arrived at Homestead, a more bloody and destructive conflict occurred in the Coeur d'Alene district of Idaho, where the workers in the silver mines were on strike. Nonunion men were imported and put into some of the mines. The strikers, armed with rifles and dynamite, thereupon attacked the nonunion men and drove them off, but many lives were lost in the struggle and much property was destroyed. The strikers proved too strong for any force which state authority could muster, but upon the call of the Governor, President Harrison ordered federal troops to the scene and under martial law order was soon restored.
Further evidence of popular unrest was given in August by a strike of the switchmen in the Buffalo railway yards, which paralyzed traffic until several thousand state troops were put on guard. About the same time, there were outbreaks in the Tennessee coal districts in protest against the employment of convict labor in the mines. Bands of strikers seized the mines, and in some places turned loose the convicts and in other places escorted them back to prison. As a result of this disturbance, during 1892 state troops were permanently stationed in the mining districts, and eventually the convicts were put back at labor in the mines.
Such occurrences infused bitterness into the campaign of 1892 and strongly affected the election returns. Weaver carried Colorado, Idaho, Kansas, and Nevada, and he got one electoral vote in Oregon and in North Dakota; but even if these twenty-two electoral votes had gone to Harrison, he would still have been far behind Cleveland, who received 277 electoral votes out of a total of 444. Harrison ran only about 381,000 behind Cleveland in the popular vote, but in four States, the Democrats had nominated no electors and their votes had contributed to the poll of over a million for Weaver. The Democratic victory was so sweeping that it gained the Senate as well as the House, and now for the first time a Democratic President was in accord with both branches of Congress. It was soon to appear, however, that this party accord was merely nominal.