There had been a dead-lock of the Senate over the nomination of its officers, and this still continued, and the President was, in consequence, embarrassed by the failure to act on any of his nominations. It began to be thought that this delay, covered by the pretense of securing Mahone, of Virginia, to the Republicans, was really a scheme to prevent any action on the President’s nominations.
Meanwhile, the administration had to deal with problems more important to the country than the Robertson nomination. Two hundred millions of six per cent. bonds were shortly to become redeemable. It was every way desirable that the bonds should be redeemed and the rate of interest on the public debt reduced. To issue bonds under the existing laws, in order to raise money to redeem the six per cents., would require the new bonds to be issued at four per cent. for thirty years, or four and a half per cent. for twenty years. These rates of interest were too high, and the time for the bonds to run too long. In case the Government acquired the means to pay them off before they were due, still the interest would keep running. There were grave objections to calling an extra session of Congress. Garfield and the country were afraid of the unsettling influence of our national legislature. Early in his Congressional career, Garfield had said, “if the laws of God were as vacillating as the laws of this country, the universe would be reduced to chaos in a single day.” Above all things, the business of the country demanded a rest from congressional tinkering.
When powerful, and it was thought overwhelming influences pressed upon President Garfield the policy of an extra session of Congress, he sent to the Secretary of the Treasury a call for full information as to the powers he had under existing laws. It was a wise conclusion that it might be easier to hunt up old laws than to have new ones made. Whatever the old laws permitted was certain, but a fresh Congress is uncertain, especially on finance.
The Secretary found that there was no law to prevent the Government from using its credit and business foresight in handling and refunding its indebtedness. The plan which President Garfield and Secretary Windom evolved was absolutely original and proved to be the highest statesmanship. Garfield was at home on questions of finance.
A circular was issued to the holders of the six per cents., saying that after the following July 1st, interest would cease, and the bonds be redeemed as fast as presented. If, however, the holders preferred to retain the bonds, and receive three and a half per cent., at the pleasure of the Government, they could do so.
As the event showed, hardly any bonds were presented for redemption. And without any legislation the interest on that portion of the public debt was reduced from six to three and a half per cent., and all that without the expense of a new issue of bonds, or the disadvantage of a debt not maturing till long after the Government would probably be ready to pay it. This financial feat attracted the attention of European States, and was pronounced one of the most masterly financial schemes of history.
While the Senate was still at a dead-lock over the offices of Secretary and Sergeant-at-Arms, and the Robertson quarrel grew blacker and blacker, President Garfield and his cabinet found time to commence an investigation of the alleged gigantic frauds in the post-office department. It promised to engulf and destroy some of the best workers of the Republican party, but the President, in spite of terrific pressure, and in spite of the battle raging over the Robertson matter, set his face like brass against all corruption. The Star Route contracts, though they may not fall within reach of the law, were of the following character: In lonely mountain districts of the West, where a mail for miners’ camps would be needed about once in two weeks, a contract would be let for carrying the mail at say $500 a trip, making the cost for the line for the year about $13,000. Then, under pretense of the need of more mails on account of the development of the West, Congress would be induced to order a daily instead of a biweekly mail. By this “expediting,” the contractor was enabled, under the old rate of $500 per trip, to make $150,000 a year out of the line. Many times the mail bags in these “expedited” routes are said to have been empty as they were carried through the mountains. Postmaster-General James and Attorney-General MacVeagh were the principal prosecutors of the investigation.
Meanwhile, the storm raged with ever-growing fierceness around the President. The Republican Senatorial caucus sent committee after committee to him to induce the withdrawal of Robertson’s name. He was subjected to every possible pressure and influence, but Grant himself never held a position with greater firmness. Conkling, however, proposed and carried through the Republican caucus the following plan, by which the dead-lock was to be broken temporarily, allowing the Senate to go into executive session: All nominations that were not opposed by one Senator from the nominee’s State were first to be acted upon. The rest could take care of themselves. This admitted about every one except Robertson to the consideration of the Senate. The plan was popularly supposed to mean the confirmation of all unopposed nominations, including those of Senator Conkling’s friends, and then either an adjournment sine die, or a breaking of the quorum, by absentees, so as to prevent any action on Robertson’s name till December. This would be a victory for the New York Senator.
But the President, though possessing too much self-respect to make this a personal controversy, was yet brave and strategic. Shortly after the Senate went into executive session, the President’s private secretary arrived with a message which fell like a thunderbolt on that body. The message withdrew the nominations of Senator Conkling’s friends. It was a checkmate. The plan of the caucus was foiled. President Garfield assigned as his reason simply that the discrimination which was attempted, in acting on all the nominations from the Stalwart element and refusing to act on the solitary representative of the opposite element, was wrong and unfair. He said that the President’s duty was to nominate, and that the Senate’s sworn duty was to confirm or reject. To refuse to do either was surpassing their prerogative. To show how consistent the President was in this struggle, with views held long years before he ever thought of the Presidency, we insert an extract from an article by him on “A Century of Congress,” in the Atlantic Monthly, for July, 1877: