CHAPTER VII

THE NEW ISSUES

Garfield died before he met his first Congress, the Forty-seventh, which

was elected with him in 1880, but he lived long enough to foresee the

first chance to do party business that had appeared since 1875. When

Grant lost the lower house at the election of 1874, the Democrats gained

control of that body and Michael C. Kerr, of Indiana, supplanted Blaine

as Speaker. On Kerr's death in 1876, Samuel J. Randall, of Pennsylvania,

took the place, and was continued in it through the next two Congresses,

in the latter of which, the Forty-sixth, his party controlled the Senate

too. It had been impossible to produce an agreement between the Senate,

the House, and the President on important new matters. They could not

always agree even on appropriations, and all Republicans felt with Mrs.

Blaine when she wrote, after the election of 1880, "Do you take in that

the House is Republican, and the Senate a tie, which gives the casting

vote to the Republican V.P.? Oh, how good it is to win and to be on the

strong side!"

When the new Congress organized, Randall ceased to be Speaker and became

leader of the minority, while J. Warren Keifer, of Ohio, took his place,

with a small Republican majority behind him. In the Senate the

predictions of Mrs. Blaine were fulfilled, although the accident which

made a President of Arthur left the Senate without a Vice-President. In

the even division of the Senate, the two independent members controlled

the whole. Judge David Davis, transferred "from the Supreme Bench to the

Fence," became the presiding officer, and generally voted with the

Republicans, though elected as a Democrat. Mahone, of Virginia, an

Irishman and an ex-Confederate, called himself a "Readjuster," and voted

with the Administration. These two men made it possible to carry party

measures through Congress.

Shortly after Congress met in 1881, Arthur reorganized his Cabinet,

allowing the friends of Garfield to resign and putting his own Stalwart

friends in their places. The new Secretary of State, Frelinghuysen, took

up Blaine's policies and mangled them. He adhered to the general view of

an American canal, as Blaine had done. He pushed the influence of the

United States in Europe as far as he could, keeping Lowell, in England,

busy in behalf of Irish-Americans whose lust for Home Rule got them into

trouble with the British police. But he dropped the South American

policy, recalled the invitations to the Pan-American Congress, and kept

hands off the Chilean war. Blaine protested in vain against this

humiliating reversal.

The decision of Arthur to take counsel from the Stalwarts aroused fears

among others of the party that his would be the administration of a

spoilsman. His first message, however, somewhat allayed these fears, for

it dwelt at length upon the unsatisfactory status of the civil service,

and the need for a merit system that should govern removals and

appointments. He promised his support to measures even more

thoroughgoing than the reformers had asked, and, in January, 1883,

signed the "magna carta" of civil service reform.

The use of public offices for party purposes had been regarded as a

scandal by independents of both parties for four administrations. The

long list of breaches of trust, revealed in the seventies, had made

reformers feel that incompetence and spoils endangered the life of the

nation. As late as 1880, they had heard a delegate in the Republican

Convention, when asked to vote for a civil service plank, exclaim

indignantly: "Mr. President, Texas has had quite enough of the civil

service.... We are not here, sir, for the purpose of providing offices

for the Democracy.... After we have won the race, as we will, we will

give those who are entitled to positions office. What are we up here

for?" And they had become used to the silent or outspoken resistance to

their demands from men in "practical" politics.

The history of the civil servants of the United States falls into three

periods: Before 1829, 1829-65, and 1865-83. In the first period they

were commonly treated as permanent officials. Rarely had they been

removed for partisan purposes, although it had been the wail of

Jefferson that "few die, and none resign." Appointments had often been

given as the reward for past services, but none had felt a need for a

general proscription of officials upon the entry of a new President.

Andrew Jackson brought a new practice into use in 1829. His election

followed a political revolution, in which it was believed by his

supporters that the National Republican party had become corrupt. It was

a matter of faith and pledge to turn the incumbents out of office.

Hungry patriots crowded round the jobs, while Jackson's advisers

included men who in New York and Pennsylvania had already learned how to

use the offices as retainers for future service. Advocacy of the

Democratic principle of rotation in office was in practice easily

converted into the maintenance of the maxim that "to the victors belong

the spoils."

Every President after Jackson used the offices for partisan purposes,

and few objected to the practice on theoretical grounds. The simplicity

of the National Government made the habit less destructive than it

otherwise would have been. The spoils system did not enter the army or

navy, the only extensive technical departments of the United States. In

other branches of the Government a large majority of the officials were

unskilled penmen, whose places could easily be filled with others as

little skilled as themselves. Always a few clerks who knew the business

were saved to guide the recruits, and the departments were generally

working again before a President met his first Congress.

Lincoln was not different from his predecessors in the use of offices.

He permitted the most complete sweep that had yet been made, being

forced to an unusually high percentage of new appointments by the

necessity of removing Southerners. In his hands the patronage became an

additional weapon for the Union, upholding the leaders in Congress, and

striking at the backsliders. In the election of 1864 the Union party

carried all the branches of the Government, and it had a vision of four

years of complete control of the offices when the death of Lincoln

brought a Tennessee Democrat into the White. House.

The discussion of civil service reform, on theoretical grounds, began

about 1865, when the evil of removals for party purposes was shown to

the Senate. Johnson was trying to use the patronage for his own ends, in

opposition to the will of the radicals in Congress. Reformers who

maintained the iniquity of this custom now found temporary converts

among the Republicans. They got a committee appointed on the civil

service in 1866, and President Grant announced his conversion to the

principle early in his Administration.

In 1871 Congress tried the experiment of a modest appropriation

($25,000) for a reform of the civil service, and Grant placed the test

in the hands of George William Curtis, a leader of the new reform. The

commission breasted the whole current of politics, found that Grant

would not support it in critical cases, and was abandoned by Congress

after a short trial. The demand, however, increased, receiving the

support of the independents who were Liberal Republicans in 1872, and

who thereafter constituted a menace to party regularity. Schurz, Godkin,

and Curtis were their admitted leaders. In 1872 and 1876 they persuaded

the great parties to put general pledges for civil service reform into

their platforms. Schurz, as Secretary of the Interior under Hayes, put

their ideal partly into practice. In 1881 they were a well-recognized

body of advocates, with a definite doctrine of non-partisan efficiency,

which few politicians denied in principle or liked in fact.

Public attention was focused upon the civil service by the events of

1881. The fight between Garfield and Conkling raised not only the

question of the relative rights of President and Senate in appointments,

but that of the use of offices for the support of political machines.

The frauds uncovered in postal administration by the star-route

investigations could hardly have occurred in a department administered

by experienced and competent officials. The murder of Garfield by a

disappointed office-seeker gave additional emphasis to the need for

reform, and these things coming together made possible the passage of a

civil service act earlier than its advocates expected.

President Arthur recommended the reform in 1881, and his party,

chastened by the fall election of 1882, took up a law in the session of

1882-83. Eaton, one of the leading reformers, and first chairman of the

Civil Service Commission, wrote the bill which Congress passed with

little real debate. Men who hated the measure knew the unwisdom of

opposing it. A board of three commissioners was created in 1883 to

classify the civil servants, prepare rules and lists, and conduct

examinations. The classified service, removed from politics, began with

13,780 officers in 1884; by 1896 it contained 87,044; by 1911, 227,657.

It grew most actively toward the end of each administration, as outgoing

Presidents transferred to it the offices that they had filled. Its best

recommendation was to be found in the opposition of politicians toward

it.

Arthur did better than the reformers had hoped in urging and

administering the Civil Service Act. He prosecuted the star-route

trials, even among his Stalwart friends.

In 1882 Congress, with Arthur's approval, took up a revision of the

tariff. Neither of the great parties had, in 1882, received a clear

mandate touching the tariff, although it was true that most Republicans

were content with the system in its general outlines, while a

considerable number of Democrats were listening to tariff reform and

asking for a tariff for revenue only. It had been eighteen years since

the last general revision had taken place, and in that period unforeseen

conditions had developed, whose tendency was at once to point the need

for a readjustment of schedules and to create a class of citizens whose

profits would be touched thereby. The course of financial reconstruction

between 1865 and 1875 had raised the rate of actual protection beyond

the expectations of its advocates.

In 1865 the revenues of the United States, amounting to $322,000,000,

and far exceeding the needs of the Treasury in time of peace, came

chiefly from the tariff and the internal revenue. The two taxes were

dependent upon each other. Each increase in the latter had forced an

increase in the former, lest special burdens should be laid upon

American manufacture. The ideal of protection had never been lacking,

nor had special interests failed to look out for themselves, but the

dominant spirit in the war taxes was revenue.

When Congress undertook to reduce the revenue to a peace basis, it found

that every approach to the tariff aroused classes of interested

manufacturers, while every attack upon the internal revenue was welcomed

by the public. As a result, following the line of least resistance, most

of the internal taxes were removed by 1870, leaving the tariff rates

where they had been, and higher than any protectionist had asked. A

large part of the tariff rate had been intended to equalize the internal

revenue tax; the removal of the latter created to that extent an

incidental protection, which was unexpected but was none the less

acceptable. Some few details of the tariff were modified by special

acts, and there was a flat reduction of ten per cent in 1872. But the

panic of 1873 reduced the revenues and frightened Congress, in 1875,

into restoring the ten per cent. In 1882 the rates of 1865 remained

substantially unchanged, leaving the protected industries in the

enjoyment of an incidental protection never intended for them and

created only by accident in the general reduction of revenue.

Spasmodic attacks were made upon the tariff system throughout the

seventies, but since few defended it on principle they failed to affect

the public. The tariff was not a political issue. Opposition to it was

confined to members of the Democratic party, in search for weapons to

turn against the Republicans, and to theorists and economists who had

little connection with politics. There were free-trade clubs after

1868, though few ever wanted to establish real free trade. All that the

free-trader commonly desired was a mitigation of protection and the

establishment of reasonable rates. Godkin, Schurz, Sumner of Yale, David

A. Wells, Edward Atkinson, and Henry D. Lloyd taught the

tariff-for-revenue theory wherever they could find listeners. Wells

wrote on "The Creed of Free Trade," in the _Atlantic Monthly_ in 1875,

and was sure he had found the issue of 1876. But in neither this nor the

next campaign did the parties face the issue. In 1880 the tariff figured

only as a means of embarrassing Hancock, while Garfield did not even

mention it in his inaugural.

The forces that compelled a revision of the tariff in 1882-83 had to do

with revenue and expenditures. Following the new prosperity the receipts

increased beyond the ability of Congress to spend them. There was a

small surplus in 1879. In 1880 it was $68,000,000; in 1881,

$101,000,000; in 1882, $145,000,000; in 1883, $132,000,000. The surplus

was a constant incentive to extravagance and deranged the currency. If

it was allowed to remain in the Treasury, its millions were withheld

from circulation, and contraction was the result; if it was applied to

the purchase or redemption of bonds, the national bank currency was

contracted, for this was founded upon bonds owned by the banks; and it

could not be spent without the invention of new channels. The temptation

to increase pension payments was strengthened, while public works

multiplied without reason.

The waste of money on public works induced Arthur to advertise the need

for a reduction of the revenue. The annual River and Harbor Bill had

consumed $3,900,000 in 1870, and $8,900,000 in 1880. In 1882 the bill

was swollen to over $18,000,000 by greed and log-rolling. Arthur vetoed

it as unreasonable and unconstitutional in August, 1882. It passed over

his veto, but the defeat of his party in the following November was

construed as a vindication of the President. The Republicans lost

control of the House of Representatives, Democratic governors were

elected in Massachusetts and Pennsylvania, in New York, Connecticut, New

Jersey, and Indiana, and critics began to ask if this was the beginning

of the end of the party. The certainty that party bills could not be

passed in the next Congress, with the control divided, stimulated the

Republicans to act while they could. The Civil Service Act was passed

early in 1883, and on the same day the House took up the consideration

of a new tariff.

Arthur, in 1881, had urged that the revenues be reduced and the tariff

be revised, and Congress had created a commission to investigate the

needed changes, in May, 1882. This committee was in session throughout

the following summer, sitting in manufacturing centers all over the East

and hearing testimony from all varieties of manufacturers. It had been

organized on a conservative basis, containing members familiar with the

needs of sheep-raisers and wool manufacturers, and iron and sugar, as

well as experts on administration. Its enemies thought that it was

pledged to protection at the start. The commission expressed a belief

that the country desired to adhere to the general idea of protection,

but it early learned the force of the demand for revision and reduction,

and sent into the House, in December, 1882, a project for a bill

intended to reduce the tariff at least twenty per cent. The bill based

on this was reported from the Committee on Ways and Means on January 16,

1883, and was debated until February 20, and then abandoned in the House

for a bill which had passed the Senate.

The Senate Bill was in the form of an amendment to an Internal Revenue

Bill already before that house. It was passed on February 20 under the

leadership of the young Senator from Rhode Island, Nelson W. Aldrich,

and was sent to conference by the House a week later. In conference a

new bill was substituted for the Senate Bill. This was hurried through

both houses in time to receive the signature of Arthur on March 3, 1883.

The tariff of 1883 failed to meet the demand for a revision. Its debates

show the difficulties attendant upon the construction of any tariff.

Congress was divided upon the theory of protection, both parties

including high protectionists as well as tariff-for-revenue men. The

revenue-producing side of the tariff increased the complexities, since

every change in a rate might affect the standing of the Treasury. In

addition to the economic and the fiscal needs, quite serious enough,

there was the tireless influence of the lobby of manufacturers, pressing

for single rates which should aid this business or that. Few Congressmen

were sufficiently detached in interests to be entirely dispassionate as

they framed the schedules. Many did not even try to disguise their

desire to promote local interests. Neither party had a mandate on the

tariff in 1882, but when the act had become a law it was clear that most

of the Republican leaders voted cheerfully for all the protection they

could get, that the intent to reduce the revenue had failed, and that

what little hope of revision remained was in the opposition party. "The

kaleidoscope has been turned a hair's breadth," said the _Nation_, "and

the colors transposed a little, but the component parts are the same."

It was deliberate bad faith throughout, urged a Democratic leader, and

"finished this magnificent shaft [of the tariff policy] which they had

been for years erecting, and crowned it with the last stone by repealing

the internal tax on playing cards and putting a twenty per cent tax upon

the Bible."

Throughout the tariff debate no argument had been used more steadily

than that of the protectionists that protection to labor was their aim.

The degradation of "pauper labor" in Europe was contrasted repeatedly

with that prosperity that was typical of America. The insistence upon

the argument revealed the desire to conciliate a class that was being

noticed in American society for the first time.

The great labor problem before the Civil War had been that of getting

enough laborers and meeting the competition which the abundant free

lands of the West had offered. Labor organizations and strikes had been

so unusual that public opinion had not yet come to regard them as normal

features of society. But the manufacturing development of the sixties

in iron and steel, in textiles, and in other machine industries, threw

workmen together in increasing number, taught them their interests as a

class, and set the scene for an outbreak of strikes when the shops shut

down or reduced wages in the depression of the seventies. About 1877

these strikes shocked society by their violence. Neither had the public

been educated to the strike itself, nor the labor leaders to that

moderation, without which public sympathy cannot be retained or strikes

won. A feeling adverse to organized labor swept the country and

endangered the existence of the labor movement.

POPULATION AND IMMIGRATION, 1850-1910

(Table and Diagram based upon Thirteenth Census, 1910, Population,

Vol. 1, pp. 129, 130.)

Total Foreign

Population. and Mixed Foreign Born.

Parentage.

1910 91,972,266 18,897,837 13,345,545

1900 75,994,575 15,646,017 10,213,817

1890 62,947,714 11,503,675 9,121,867

1880 50,155,783 8,274,867 6,559,679

1870 39,818,449 5,324,268 5,493,712

1860 31,443,321 4,096,753

1850 23,191,876 2,240,535

[Illustration: graph]

The Knights of Labor received the heaviest weight of disfavor. This was

an industrial union, founded in 1869, embracing labor of all trades, and

held together by a secret organization. Dismissal so often followed

admitted membership in a union that secrecy was defensible, but secrecy

mystified and frightened the public. The policy of secrecy was abandoned

in 1882, after the excesses of the "Molly Maguires" had brought

discredit upon all organized labor. Under the leadership of Grand Master

Workman Powderly the Knights carried on an open and aggressive campaign

of education for labor and inspection laws throughout the Union. The

American Federation of Labor, founded in 1881 and reorganized in 1886,

aided in this general work, and with the Knights helped to reconcile the

public to the principle of unionism.

State bureaus of labor appeared in many States as the result of the

general agitation. An eight-hour law, for federal employees, had been

gained in 1868, while in 1884 a Commissioner of Labor was created in

the Department of the Interior. Arthur was urged to give the post to

Powderly, but selected instead an economist less actively identified

with the propaganda, Carroll D. Wright, under whose direction the Bureau

grew steadily in importance. Its reports became quarries for statistical

information on the labor problem, and its success justified its

incorporation in the new Department of Commerce and Labor in 1903.

The "Army of the Discontented," as Powderly called the workers, demanded

education and protective laws, and turned their attention to competition

about 1882. The cutting of wages by peasant laborers, newly arrived in

America, was a grievance as soon as labor became class-conscious.

Opposition to this became virulent in the Far West, where the foreigner

was also a Mongolian. The Chinese of the Pacific Slope, more frugal and

industrious than Americans, were harried in the early eighties, and

violence was done them in many quarters. Garfield had been weakened in

1880 by a forged letter seeming to show that he favored the introduction

of more Chinese. So numerous were the persecutors that Congress

responded to the demand for a Chinese Exclusion Bill, in spite of the

Treaty of 1880, which guaranteed fair treatment. Arthur vetoed the first

bill, but accepted a second, less stringent in its terms. After this

victory, the labor forces turned upon immigration in general.

No idea had been fixed more firmly in the American mind than that the

oppressed of Europe were here to find opportunity. Immigrants had

always been welcomed and assimilated, while Congress had, in 1864,

organized a bureau to encourage and safeguard immigration. The influx

always increased in prosperous, and declined in adverse, years. After

1878 the annual number broke all records. Western railway corporations

were inviting immigrants to use their lands, manufacturers called them

to the mills, and the total rose from 177,000 in 1879 to 788,000 in

1882. This latter year was the greatest of the century, its newcomers

attracting the attention of the press, of the city charities who felt

their growing responsibilities, and of the unions who felt their

competition. Nearly all the immigrants were producers, a high percentage

being able-bodied young men and women. The greatest number came from

Great Britain, among whom the Irish settled in the Eastern cities. Next

were the Germans, who moved toward Chicago or St. Louis, while the

Scandinavians filled up the wheat-lands of the Northwest.

Under the demand of the labor vote, Congress provided, in 1882, for the

inspection of immigrants and the deportation of undesirable aliens, and

in 1885 it forbade the importation of skilled laborers under contract.

As yet the labor movement was largely aristocratic, safeguarding the

skilled workmen, but disregarding the common laborers.

The labor and immigration movement in its new aspect widened the field

for economic legislation, for few States had factory laws, employers'

liability laws, or laws protecting the weak,--the women and the

children. It also complicated the situation in politics. The Germans

and Scandinavians, settling in centers which had been strongly Unionist

in the Civil War, were believed to absorb the doctrines of the

Republicans from their compatriots already in America. The Irish were

generally Democrats, and the only Republican leader who had a large

following among them was Blaine. He had fraternized with the California

Irish leader, Dennis Kearney; as Secretary of State he had protected

naturalized Irishmen who went home to fight for Home Rule; some of his

immediate family were Catholics; and his insistence on an American canal

won him friends who were already disposed to hate Great Britain.

The votes of 1876 and 1880 showed that the two parties were nearly even

in strength, so that any slight popularity or accident might decide an

election. As politicians prepared for 1884 the attitude of naturalized

foreigners assumed a new importance which the friends of the various

candidates tried to measure. The campaign could not be fought on any of

the old issues, but which of the new--civil service, tariff, or

labor--was in doubt.

BIBLIOGRAPHICAL NOTE

The best history of civil service reform is C.R. Fish, _The Civil

Service and the Patronage_ (1905). This supplants all previous accounts,

and may itself be supplemented in detail by the Annual Reports of the

United States Civil Service Commission (1883-), by the _Memoirs of Carl

Schurz_ (3 vols., 1907-08), the _Writings of Carl Schurz_ (7 vols.,

Frederic Bancroft, _ed._, 1912), the biographies of J.R. Lowell, E.L.

Godkin, and George William Curtis, and the files of _Harper's Weekly_,

the _Nation_, and the _North American Review_. The general narrative of

the eighties is covered by E.E. Sparks, _National Development_, and D.R.

Dewey, _National Problems_ (in _The American Nation_, vols. 23 and 24,

1907), and E.B. Andrews, _The United States in Our Own Time_. A

thoughtful economic analysis of the period is D.A. Wells, _Recent

Economic Changes_ (1890). The Report of the Tariff Commission of 1882 is

valuable for the study of tariff revision, as are also the standard

tariff histories by E. Stanwood, I.M. Tarbell, and F.W. Taussig. The

Annual Reports of the Commissioner of Labor (1884-) are fundamental for

the labor problem. Useful monographs are C.D. Wright, _An Historical

Sketch of the Knights of Labor_ (in _Quarterly Journal of Economics_,

vol. I), T.V. Powderly, _Thirty Years of Labor_ (1889), G.E. McNeill,

_The Labor Movement_ (1887), and M.A. Aldrich, _The American Federation

of Labor_ (in American Economic Association, Economic Studies, vol.

III).

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