CHAPTER XII

DEMOCRATIC DEMORALIZATION

In view of the fact that Harrison had been successful in 1888 and that

Cleveland had been the most able Democratic leader since the Civil War,

it seemed natural that their parties should renominate them in 1892.

Yet the men at the oars in the Republican organization were far from

enthusiastic over their leader. It is probable that Harrison did not

like the role of dispenser of patronage and that he indicated the fact

in dealing with his party associates; at any rate, he estranged such

powerful leaders as Platt, Quay and Reed by his neglect of them in

disposing of appointments. The reformers were no better satisfied; much

had been expected of him because his party had taken so definite a

stand in 1888, and when his choice of subordinates failed to meet

expectations, the scorn of the Independents found forceful vent. Among

the rank and file of his party, Harrison had aroused respect but no

great enthusiasm.

The friends of Blaine were still numerous and active, and they wished

to see their favorite in the executive chair. Perhaps Blaine felt that

there would be some impropriety in his becoming an active candidate

against his chief, while remaining at his post as Secretary of State;

at any rate he notified the chairman of the National Republican

Committee, early in 1892, that he was not a candidate for the

nomination. The demand for him, nevertheless, continued and relations

between him and Harrison seem to have become strained. Senator Cullom,

writing nearly twenty years afterward, related a conversation which he

had had with Harrison at the time. In substance, according to the

senator, the President declared that he had been doing the work of the

Department of State himself for a year or more, and that Blaine had

given out reports of what was being done and had taken the credit

himself. Cullom's recollection seems to have been accurate, at least as

far as relations between the two men were concerned, for three days

before the meeting of the Republican nominating convention Blaine sent

a curt note to the President resigning his office without giving any

reason, and asking that his withdrawal take effect immediately. The

President's reply accepting the resignation was equally cool and

uninforming. If Blaine expected to take any steps to gain the

nomination, the available time was far too short. That the act would be

interpreted as hostile to the interests of Harrison, however, admitted

of no doubt, and it therefore seems probable that Blaine had changed

his mind at a late day and really hoped that the party might choose

him.[1]

Despite Blaine's apparent change of purpose, it seemed necessary to

renominate Harrison in order to avoid the appearance of discrediting

his administration, and on the first ballot Harrison received 535 votes

to Blaine's 183 and was nominated. The only approach to excitement was

over the currency plank in the platform. Western delegates demanded the

free coinage of silver, which the East opposed. The plank adopted

declared that

The Republican party demands the use of both gold and silver as

standard money, with such restrictions and under such provisions,

to be determined by legislation, as will secure the maintenance of

the parity of values of the two metals.

It was a meaningless compromise, but it seems to have satisfied both

sides.

Cleveland, during the Harrison administration, had been an object of

much interest and not a little speculation. After seeing President

Harrison safely installed in office, he went to New York city where he

engaged in the practice of law. He himself thought that he was retiring

permanently and not a few enemies were quite willing that this should

be the case. The eminent Democratic editor, Henry Watterson, remarked

that Cleveland in New York was like a stone thrown into a river, "There

is a 'plunk,' a splash, and then silence.". He was constantly invited,

nevertheless, to address public assemblies, which provided ample

opportunity for him to express his thoughts to the country. Moreover,

the McKinley Act of 1890 and the political reversal which followed

brought renewed attention to the tariff message of 1887 and to its

author. In February, 1891, Cleveland was asked to address a meeting of

New York business men which had been called by the Reform Club to

express opposition to the free coinage of silver. The question of the

increased use of silver as a circulating medium, as has been seen, was

a controverted one; neither party was prepared to take a definite

stand, and, indeed, division of opinion had taken place on sectional

rather than partisan lines. While the subject was in this unsettled

condition Cleveland received his invitation to the Reform Club, and was

urged by some of his advisors not to endanger his chances of

renomination by taking sides on the issue. The counsel had no more

effect than similar advice had produced in 1887 when the tariff was in

the same unsettled condition. Although unable to attend, Cleveland

wrote a letter in which he characterized the experiment of free coinage

as "dangerous and reckless." Whether right or wrong, he was definite;

people who could not understand the intricacies of currency standards

and the arguments of the experts understood exactly what Cleveland

meant. Little doubt now existed but that the name of the ex-president

would be a powerful one before the nominating convention, for he would

have the populous East with him on the currency issue--unless David B.

Hill should upset expectations.

Hill was an example of the shrewd politician. Like Platt, whom he

resembled in many ways, he was absorbed in the machinery and

organization of politics, rather than in issues and policies. Beginning

in 1870, when he was but twenty-seven years of age, he had held public

office almost continuously. In the state assembly, as Mayor of Elmira,

as Lieutenant-Governor with Cleveland and later as Governor, he

developed an unrivalled knowledge of New York as a political arena. In

1892 he was at the height of his power and the presidency seemed to be

within his grasp. The methods which he used were typical of the

man--the manipulation of the machinery of nomination.

The national Democratic nominating convention was called for June 21,

but the New York state Democratic committee announced that the state

convention for the choice of delegates would meet on February 22. So

early a meeting, four months before the national convention, was

unprecedented, and at once it became clear that a purpose lay behind

the call. It was to procure the election of members to the state

convention who would vote for Hill delegates to the nominating

convention, before Cleveland's supporters could organize in opposition.

Furthermore, it was expected that the action of New York would

influence other states where sentiment for Cleveland was not strong.

Hill's plan worked out as he had expected--at least in so far as the

state convention was concerned--for delegates pledged to him were

chosen. Cleveland's supporters, however, denounced the "snap

convention" and a factional quarrel arose between the "snappers" and

the "anti-snappers"; outside of New York it was so obvious that the

snap convention was a mere political trick that the Hill cause was

scarcely benefited by it. Delegates were chosen in other parts of the

country who desired the nomination of Cleveland.

The convention met in Chicago on June 21 and proceeded at once to adopt

a platform of principles. The silver plank was hardly distinguishable

from that of the Republicans, except that it was enshrouded with a

trifle more of ambiguity. The adoption of a tariff plank elicited

considerable difference of opinion, but the final result was an extreme

statement of Democratic belief. Instead of adopting the cautious

position taken in 1884, the convention declared that the constitutional

power of the federal government was limited to the collection of tariff

duties for purposes of revenue only, and denounced the McKinley act as

the "culminating atrocity of class legislation."

Although it was evident when the convention met, that the chances of

Hill for the nomination were slight indeed, the battle was far from

over. Hill was a "straight" party man, a fact which he reiterated again

and again in his famous remark, "I am a Democrat." Cleveland was not

strictly regular, a fact which Hill apparently intended to emphasize by

constant reference to his own beliefs. The oratorical champion of the

Hill delegation was Bourke Cockran, an able and appealing stump

speaker. For two hours he urged that Cleveland could not carry the

pivotal state, New York, and that it was folly to attempt to elect a

man who was so handicapped. Eloquence, however, was of no avail. The

first ballot showed that the Hill strength was practically confined to

New York, and Cleveland was easily the party choice. For the

vice-presidency Adlai E. Stevenson, a partisan of the old school, was

chosen.

Among the smaller parties there appeared for the first time the

"People's Party," later and better known as the "Populists." Their

nominee was James B. Weaver, who had led the Greenbackers in 1880.

Their platform emphasized the economic burdens under which the poorer

classes were laboring and listed a series of extremely definite

demands.

The campaign was a quiet one as both Cleveland and Harrison had been

tried out before. So unenthusiastic were the usual political leaders

that Colonel Robert G. Ingersoll declared that each party would like

to beat the other without electing its own candidates. Although the

financial issue was kept in the background, the tariff was fought out

again somewhat as it had been in 1888. The New York _Sun_ shed some

asperity over the contest by calling the friends of Cleveland "the

adorers of fat witted mediocrity," and the nominee himself as the

"perpetual candidate" and the "stuffed prophet"; and then added a ray

of humor by advocating the election of Cleveland. The adoption of the

Australian ballot, before the election, in thirty-four states and

territories constituted an important reform; thereafter it was

impossible for "blocks of five" to march to the polls and deposit their

ballots within the sight of the purchaser. The Homestead strike near

Pittsburg, Pennsylvania, somewhat aided the Democrats. The Carnegie

Steel Company, having reduced wages, precipitated a strike which was

settled only through the use of the state militia. As the steel

industry was highly protected by the tariff, it appeared that the wages

of the laboring man were not so happily affected as Republican orators

had been asserting.[2]

The result of the election was astonishing. Cleveland carried not

merely the South but Connecticut, New York, New Jersey, Indiana,

Illinois, Wisconsin and California, while five of Michigan's fourteen

electoral votes and one of Ohio's twenty-three went to him. In the

last-named state, which had never gone against the Republicans, their

vote exceeded that of the Democrats by only 1,072. For the first time

since Buchanan's day, both Senate and House were to be Democratic. More

surprising and more significant for the future, was the strength of the

People's Party. Over a million ballots, twenty-two electoral votes, two

senators and eleven representatives were included among their trophies.

It was an important fact, moreover, that twenty-nine out of every

thirty votes cast for the People's Party were cast west of Pennsylvania

and south of Maryland. Something apparently was happening, in which the

East was not a sharer. The politician, particularly in the East, was

quite content to dismiss the Populists as "born-tired theorists,"

"quacks," "a clamoring brood of political rainmakers," and "stump

electricians," but the student of politics and history must appraise

the movement less provincially and with more information.

It was in the nature of things that the Populist movement should come

out of the West. From the days of Clay and Jackson the westerner had

been characterized by his self-confidence, his assertiveness and his

energy. He had possessed unlimited confidence in ordinary humanity,

been less inclined to heed authority and more ready to disregard

precedents and experience. He had expressed his ideals concretely, and

with vigor and assurance. He had broken an empire to the plow, suffered

severely from the buffetings of nature and had gradually worked out his

list of grievances. One or another of his complaints had been presented

before 1892 in the platforms of uninfluential third parties, but not

until that year did the dissenting movement reach large proportions.

It has already been seen that the people of the West were in revolt

against the management of the railroads. They saw roads going bankrupt,

to be sure, but the owners were making fortunes; they knew that lawyers

were being corrupted with free passes and the state legislatures

manipulated by lobbyists; and they believed that rates were

extortionate. The seizure and purchase of public land, sometimes

contrary to the letter of the law, more often contrary to its spirit,

was looked upon as an intolerable evil. Moreover, the westerner was in

debt. He had borrowed from the East to buy his farm and his machinery

and to make both ends meet in years when the crops failed. In 1889 it

was estimated that seventy-five per cent. of the farms of Dakota were

mortgaged to a total of $50,000,000. Boston and other cities had scores

of agencies for the negotiation of western farm loans; Philadelphia

alone was said to absorb $15,000,000 annually. The advantage to the

West, if conditions were right, is too manifest to need explanation.

But sometimes the over-optimistic farmer borrowed too heavily;

sometimes the rates demanded of the needy westerners were usurious;

often it seemed as if interest charges were like "a mammoth sponge,"

constantly absorbing the labor of the husbandman. The demand of the

West for a greater currency supply has already been seen, for it

appeared in the platforms of minor parties immediately after the Civil

War. Sometimes it seemed as if nature, also, had entered a conspiracy

to increase the hardships of the farmer. During the eighties a series

of rainy years in the more arid parts of the plains encouraged the idea

that the rain belt was moving westward, and farmers took up land beyond

the line where adequate moisture could be relied upon. Then came drier

years; the corn withered to dry stalks; farms were more heavily

mortgaged or even abandoned; and discontent in the West grew fast.

The complaints of the westerner naturally found expression in the

agricultural organizations which already existed in many parts of the

country. The Grange had attacked some of the farmer's problems, but

interest in it as a political agency had died out. The National

Farmers' Alliance of 1880 and the National Farmers' Alliance and

Industrial Union somewhat later were both preceded and followed by many

smaller societies. Altogether their combined membership began to mount

into the millions. When, therefore, the Alliances began to turn away

from the mere discussion of agricultural grievances and toward the

betterment of conditions by means of legislation, and when their

principles began to be taken up by discontented labor organizations, it

looked as if they might constitute a force to be reckoned with.

The remedies which the Alliances suggested for current ills were

definite. Fundamentally they believed that the government, state and

federal, could remedy the economic distresses of the people and that it

ought to do so. At the present day such a suggestion seems commonplace

enough, but in the eighties the dominant theory was individualism--each

man for himself and let economic law remedy injustices--and the

Alliance program seemed like dreaded "socialism." The counterpart of

the demand for larger governmental activity was a call for the greater

participation of the people in the operation of the machinery of

legislation. This lay back of the demand for the initiative, the

referendum, and the popular election of senators. Currency ills could

be remedied, the farmers believed, by a national currency which should

be issued by the federal government only--not by national banks. They

desired the free coinage of silver and gold until the amount in

circulation should reach fifty dollars per capita. Lesser

recommendations were for an income tax and postal savings banks. In

relation to the transportation system, they declared that "the time has

come when the railroad corporations will either own the people or the

people must own the railroads." In order to prevent the waste of the

public land and to stop its being held for speculative purposes, they

urged that none be allowed to remain in the hands of aliens and that

all be taken away from the railroads and corporations which was in

excess of actual needs.

The power of the new movement first became evident in 1890 and

distinctly disturbed both the Republican and the Democratic leaders.

Determined to right their wrongs, the farmers deserted their parties in

thousands, flocked to conventions and crowded the country schoolhouses

for the discussion of methods and men. Perhaps it was true, as one of

their critics asserted, that they put a "gill of fact and grievance

into a gallon of falsehood and lurid declamation" so as to make an

"intoxicating mixture." If so, the mixture took immediate effect.

Alliance governors were elected in several southern states; many state

legislatures in the South and West had strong farmer delegations; and

several congressmen and senators were sent to Washington. Success in

1890 made the Alliances jubilant and they looked to the possibility of

a countrywide political organization and a share in the campaign of

1892. The first national convention was held in Omaha in July, 1892, at

which many of the farmers' organizations together with the Knights of

Labor and other groups were represented. The name "People's party" was

adopted, the principles just mentioned were set forth in a platform and

candidates nominated. In the ensuing election the party exhibited the

surprising strength which has been seen.

It has taken more time to describe the Populist movement than its

degree of success in 1892 would justify. But it deserves attention for

a variety of reasons. Its reform demands were important; it was a

striking indication of sectional economic interests; it gave evidence

of an effective participation in politics by the small farmers, the

mechanics and the less well-to-do professional people--the "middle

class," in a word; it was a long step toward an expansion of the

activities of the central government in the fields of economic and

social legislation; and finally it emphasized the significance of the

West, as a constructive force in American life. If the Populists should

capture one of the other parties or be captured by it, nobody could

foresee what the results would be on American political history.

The second administration of Grover Cleveland, from 1893 to 1897, was

the most important period of four years for half a century after the

Civil War. For twenty-five years after 1865 American politicians had

been sowing the wind. Issues had rarely been met man-fashion, in direct

combat; instead, they had been evaded, stated with skilful ambiguity,

or beclouded with ignorance and prejudice. Politics had been concerned

with the offices--the plunder of government. It could not be that the

whirlwind would never be reaped.

The situation in 1893 was one that might well have shaken the stoutest

heart. International difficulties were in sight that threatened unusual

dangers; labor troubles of unprecedented complexity and importance were

at hand; the question of the currency remained unsettled, the treasury

was in a critical condition, and an industrial panic had already begun.

Each of these difficulties will demand detailed discussion at a later

point.[3]

To no small degree, the settlement of the political and economic issues

before the country was complicated by the unmistakable drift toward

sectionalism, and by the particular characteristics of the President.

If the administration pressed a tariff reduction policy, it would

please the South and West but bring hostility in the East. The demands

of the West, so far as the Populists represented them, were for the

increased use of the powers of the federal government and the

application of those powers to social and economic problems; but the

party in power was traditionally attached to the doctrine of restricted

activity on the part of the central authority. The sectional aspects of

the silver question were notorious; and only the eastern Democrats

fully supported their leader in his stand on the issue.

The personal characteristics of President Cleveland have already

appeared.[4] He had a burdensome consciousness of his own individual

duty to conduct the business of his office with faithfulness; a

courageous sense of justice which impelled him to fight valiantly for a

cause that he deemed right, however unimportant or hopeless the cause

might be; a reformer's contempt for hypocrisy and shams, and a blunt

directness in freeing his mind about wrong of every kind. He had the

faults of his virtues, likewise. Sure of himself and of the right of

his position, he had the impatience of an unimaginative man with any

other point of view; he was intransigent, unyielding, rarely giving

way a step even to take two forward. It seems likely that his political

experience had accentuated this characteristic. For years he had thrown

aside the advice of his counsellors and had shown himself more nearly

right than they. As Mayor of Buffalo he had used the veto and had been

made Governor of the state; as Governor he had ruggedly made enemies

and had become President; as President he had flown in the face of

caution with his tariff message and his Reform Club letter and had

three times received a larger popular vote than his competitor. And

each time his plurality was greater than it had been before. If he

tended to become over-sure of himself, it should hardly occasion

surprise. Furthermore he looked upon the duties and possibilities of

the presidential office as fixed and stationary, rather than elastic

and developing. He was a strict constructionist and a rigid believer in

the checks and balances of the Constitution. Although constantly aware

of the needs and rights of the common people, such as composed the

Populist movement, his adherence to strict construction was so complete

that he was unable to advocate much of the federal legislation desired

by them. It was only with hesitation and constitutional doubts, for

example, that he had been able to sign even the Interstate Commerce

Act. In brief, then, the western demand for social and economic

legislation on a novel and unusual scale was to take its chances with

an honest, dogged believer in a restricted federal authority.

The experience of the administration with the patronage question

illustrates how much progress had been made in the direction of reform

since the beginning of Cleveland's first term in 1885. In the earlier

year it had required a bitter contest to make even the slightest

advance; in his second term he retained Roosevelt, a Republican

reformer, on the Commission and gradually extended the rules so as to

cover the government printing office, the internal revenue service, the

pension agencies, and messengers and other minor officials in the

departments in Washington. Finally on May 6, 1896, he approved an order

revising the rules, simplifying them and extending them to great

numbers of places not hitherto included, "the most valuable addition

ever made at one stroke to the competitive service." The net result was

that the number of positions in the classified service was more than

doubled between 1893 and 1897, making a total of 81,889 in a service of

somewhat over 200,000.[5] By the latter year the argument against

reform had largely been silenced. The dismal prediction of opponents

who had feared the establishment of an office-holding aristocracy had

turned out to have no foundation. Agreement was widespread that the

government service was greatly improved. There were still branches of

the service for the reformers to work upon but the great fight was over

and won.[6]

Although the Democrats came into power in 1893 largely on the tariff

issue, Cleveland felt that the most urgent need at the beginning of the

administration was the repeal of the part of the Sherman silver law

that provided for the purchase of 4,500,000 ounces of silver each

month. The financial and monetary aspects of this controversy demand

relation at another point.[7] Politically its results were important.

Western and southern Democrats, friendly to silver, fought bitterly

against the repeal, and became thoroughly hostile to Cleveland whom

they began to distrust as allied to the "money-power" of the East. At

the time, then, when the President was most in need of united partisan

support, he found his party crumbling into factions.

Other circumstances which have been mentioned combined to make the time

inauspicious for a revision of the tariff--the slight Democratic

majority in the Senate, the deficit caused by rising expenditure and

falling revenue, the imminent industrial panic and the prevailing labor

unrest. Nevertheless it seemed necessary to make the attempt. If the

results of the election of 1892 meant anything, they meant that the

Democrats were commissioned to revise the tariff.

The chairman of the House Committee on Ways and Means was William L.

Wilson, a sincere and well-read tariff reformer who had been a lawyer

and a college president, in addition to taking a practical interest in

politics. The measure which he presented to the House on December 19,

1893, was not a radical proposal, but it provided for considerable

tariff reductions and a tax on incomes over $4,000. There was a slight

defection in party support, but it was unimportant because of the large

majority which the Democrats possessed, and the bill passed the House

without unusual difficulty.

In the Senate a different situation presented itself. The Democratic

majority over the Republicans, provided the Populists voted with the

former, was only nine; and in case the Populists became disaffected,

the Democrats could outvote the opposition only by the narrow margin of

three, even if every member remained with his party. Such a degree of

unanimity, in the face of prevailing conditions, was extremely

unlikely. The Louisiana senators were insistent upon protection for

their sugar; Maryland, West Virginia and Alabama senators looked out

for coal and iron ore; Senator Hill of New York was unalterably opposed

to an income tax; Senator Murphy, of the same state, obtained high

duties on linen collars and cuffs; and Senators Gorman and Brice were

ready to aid the opposition unless appeased by definite bits of

protection which they demanded. Many years later Senator Cullom, a

Republican, explained the practical basis on which the Senate

proceeded: "The truth is, we were all--Democrats as well as

Republicans--trying to get in amendments in the interest of protecting

the industries of our respective States."

The 634 changes made in the Senate were, therefore, mainly in the

direction of lessening the reductions made by the House. After the bill

had passed the Senate, it was put into the hands of a conference

committee, where further changes were made. At this stage of the

proceedings, Wilson read to the House a letter from the President

condemning the form which the bill had taken under Senate management,

and branding the abandonment of Democratic principles as an example of

"party perfidy and party dishonor." The communication had no effect

except to intensify differences within the party, and senators made it

evident that they would have their way or kill the measure. The House

thereupon capitulated and accepted what became known as the

Wilson-Gorman act--a law which was only less protectionist than the

McKinley act. The President, chagrined at the breakdown of the party

program, allowed the act to pass without his signature, but expressed

his mingled disappointment and disgust in a letter to Representative

T.C. Catchings:

There are provisions in this bill which are not in line with honest

tariff reform.... Besides, there were ... incidents accompanying the

passage of the bill ... which made every sincere tariff reformer

unhappy.... I take my place with the rank and file of the Democratic

party ... who refuse to accept the results embodied in this bill as

the close of the war, who are not blinded to the fact that the

livery of Democratic tariff reform has been stolen and worn in the

service of Republican protection, and who have marked the places

where the deadly blight of treason has blasted the counsels of the

brave in their hour of might.

A few phases of the attempt at tariff reduction indicate the extent to

which political decay and especially Democratic demoralization had

gone. As it passed the House, the Wilson bill left both raw and refined

sugar on the free list. This was unsatisfactory to the Louisiana sugar

growers, who desired a protective duty on the raw product, and was

objected to by the Louisiana senators. On the other hand, the American

Sugar Refining Company, usually known as the "Sugar Trust," desired

free raw materials but sought protective duties on refined sugar. In

the Senate, a duty was placed on raw sugar, partly for revenue and

partly to satisfy the Louisiana senators. On refined sugar, rates were

fixed which were eminently satisfactory to the Trust. Rumors at once

began to be spread broadcast over the country that the sugar interests

had manipulated the Senate. The people were the more ready to believe

charges of this sort because of experience with previous tariff

legislation and because the Sugar Trust had been one of the earliest

and most feared of the monopolies which had already caused so much

uneasiness. A Senate committee was appointed, composed of two

Democrats, two Republicans and a Populist, to investigate these and

other rumors. Their report, which was agreed to by all the members,

made public a depressing story. It appeared that one lobbyist had

offered large sums of money for votes against the tariff bill on

account of the income tax provision. Henry O. Havermeyer, president of

the American Sugar Refining Company, testified that the company was in

the habit of contributing to the campaign funds of one political party

or the other in the states, depending on which party was in the

ascendancy; that these contributions were carried on the books as

expense; and that they were given because the party in power "could

give us the protection we should have." Further, one or more officers

of the company were in Washington during the entire time when the

tariff act was pending in the Senate and had conferred with senators

and committees. Senator Quay testified that he had bought and sold

sugar stocks while the Senate was engaged in fixing the schedules and

added: "I do not feel that there is anything in my connection with the

Senate to interfere with my buying or selling the stock when I please;

and I propose to do so." Finally the committee summarized the results

of its investigation, taking the occasion to

strongly deprecate the importunity and pressure to which Congress

and its members are subjected by the representatives of great

industrial combinations, whose enormous wealth tends to suggest

undue influence, and to create in the public mind a demoralizing

belief in the existence of corrupt practices.

Yet one more drop remained to fill the cup of Democratic humiliation to

overflowing. The constitutionality of the income tax had been assumed

to have been settled by previous decisions of the Supreme Court,

especially that in the case Springer _v._ United States, which had been

decided in 1880, and in which the Court had upheld the law. The new tax

was brought before the Court in 1894, in Pollock _v._ Farmers' Loan and

Trust Company. The argument against the tax was pressed with great

vigor, not merely on constitutional grounds, but for evident social and

economic reasons. Important financial interests engaged powerful legal

talent and it became clear that the question to be settled was as much

a class and sectional controversy as a constitutional problem. Counsel

urged the Court that the tax scattered to the winds the fundamental

principles of the rights of private property. Justice Field, deciding

against the tax, declared it an "assault upon capital" and a step

toward a war of the poor against the rich. There was fear among some

that the exemption of the smaller incomes might result in placing the

entire burden of taxation on the wealthy. Justice Field, for example,

felt that taxing persons whose income was $4,000 and exempting those

whose income was less than that amount was like taxing Protestants, as

a class, at one rate and Catholics at another. The sectional aspects of

the controversy were brought out in objections that the bulk of the tax

would fall on the Northeast. The most important point involved was the

meaning of the word "direct" as used in the Constitution in the phrase

"direct Taxes shall be apportioned among the several States ... according

to their respective Numbers." If an income tax is a direct tax, it must

be apportioned among the states according to population. Unhappily the

framers of the Constitution were not clear as to what they meant by

the word direct, and specifically they could not have told whether an

income tax was direct or not, because no such tax existed in England

or America at that time. Hence the Supreme Court was placed in the

awkward position of defining a word which the framers themselves could

not define, although the uniform practice hitherto had been to regard

the income tax as indirect and therefore constitutional, even if not

apportioned according to population.

The Pollock case was heard twice. The result of the first trial was

inconclusive and on the central point the Court divided four to four.

After a rehearing, Justice Jackson, who had been ill and not present at

the first trial, gave his vote in favor of constitutionality, but in

the meantime another justice had changed his opinion and voted against

it. By the narrow margin of five to four, then, and under such

circumstances, the income tax provision of the Wilson-Gorman act was

declared null and void. Probably no decision since the Dred Scott case,

with the single exception of the Legal Tender cases, has put the

Supreme Court in so unfortunate a light. Certainly in none has it

seemed more swayed by class prejudice, and so insecure and vacillating

in its opinion.

Before the question regarding the constitutionality of the income tax

was settled, the Democrats reaped the political results of the

Wilson-Gorman tariff act. The law went into force on August 27, 1894;

the congressional elections came in November. The Democrats were almost

utterly swept out of the House, except for those from the southern

states, their number being reduced from 235 to 105. Reed was replaced

in the speaker's chair; tariff reform had turned out to be

indistinguishable from protection; and the Democracy, after its only

opportunity since 1861 to try its hand at government, was demoralized,

discredited, and in opposition again.

BIBLIOGRAPHICAL NOTE

The election of 1892 is described in the standard histories of the

period, and especially well in Peck.

The rise and growth of the Populist movement resulted in a considerable

literature of which the following are best: S.J. Buck, _The Agrarian

Crusade_ (1920), is founded on wide knowledge of the subject and

contains bibliography; F.J. Turner in _The Atlantic Monthly_ (Sept.,

1896), gives a brief but keen account; other articles in periodicals

are F.E. Haynes, in _Quarterly Journal of Economics_, X, 269, W.F.

Mappin, in _Political Science Quarterly_, IV, 433, and F.B. Tracy, in

_Forum_, XVI, 240; F.E. Haynes, _Third Party Movements_ (1916), is

detailed; M.S. Wildman, _Money Inflation in the United States_ (1905),

presents the psychological and economic basis of inflation; J.A.

Woodburn, _Political Parties and Party Problems_ (1914); F.L. Paxson,

_New Nation_ (1915).

Cleveland's administration is well discussed by D.R. Dewey, _National

Problems_ (1907), and by H.T. Peck, who also presents an unusual

analysis of Cleveland in _The Personal Equation_ (1898). The income tax

is best handled by E.R.A. Seligman, _The Income Tax_ (1914).

Cleveland's own account of the chief difficulties of the administration

are in his _Presidential Problems_.

* * * * *

[1] Blaine died on Jan. 27, 1893.

[2] Below, p. 320, for an account of the strike as an industrial

dispute.

[3] Below, Chaps. XIII, XIV, XV.

[4] Above, Chap. VIII.

[5] The sweeping reform order of Cleveland late in his second term

illustrated the most common and effective method of making advance.

Late in his administration the President adds to the classified

service; his successor withdraws part of the additions, but more than

makes up at the end of his term,--a sort of two steps forward and one

backward process.

[6] Cleveland's second cabinet was composed of the following: W.Q.

Gresham, Ill., Secretary of State; J.G. Carlisle, Ky., Secretary of

the Treasury; D.S. Lamont, N.Y., Secretary of War; R. Olney, Mass.,

Attorney-General; W.S. Bissell, N.Y., Postmaster-General; H.A. Herbert,

Ala., Secretary of the Navy; Hoke Smith, Ga., Secretary of the

Interior; J.S. Morton, Neb., Secretary of Agriculture.

[7] Below, pp. 336-340.

The United States Since the Civil War · 第 12 / 25 章