"The silver law threatens to produce within a year or so a single

silver standard, and already there is a feeling of uneasiness in

New York as to whether we can maintain resumption upon the gold

standard while the silver law remains. I could at any moment, by

issuing silver freely, bring a crisis upon this question, but while

I hold my present office I certainly will not do so, until the gold

reserve is practically converted into silver, a process that is

going on now at the rate of nearly two millions a month. I have

no fear, however, of being forced to this issue during my term,

and I hope Congress will come together next winter in such temper

that it may arrest the coinage of the silver dollar, if it will

not change the ratio. This question, however, is a very delicate

one to discuss in popular assemblages, and I propose, therefore,

in my speeches, to make only the faintest allusions to it, not

surrendering, however, our views upon the subject, for upon this,

I take it, we are entirely agreed.

"I feel very hopeful of success. In this state business men are

generally satisfied, and your support is so strong that, even if

inclined, the Conkling Republicans will not dare oppose or shirk

the contest. I hear different stories about Conkling, but believe

that in due time he will do what he can, though his influence is

greatly overrated. A too active support by him would excite the

prejudices of hosts of people here who are determined not to follow

where he leads.

"Very sincerely yours,

"John Sherman.

"Hon. James A. Garfield, Mentor, O."

After the 19th of July I was at my desk, busily engaged in the

routine duties of my office, until, in accordance with the following

request of General Garfield, I visited New York to attend a conference

of Republicans, as to the conduct of the pending canvass:

"Mentor, O., July 31, 1880.

"Dear Mr. Sherman:--I understand that the national Republican

committee have asked you to meet with them for consultation, in

New York, on the 5th prox.

"At their unanimous and urgent request, I have reluctantly consented

to attend, but I shall esteem it a great favor if you will also go.

"Very truly yours,

"J. A. Garfield.

"Hon. John Sherman, Washington, D. C."

More than two hundred prominent Republicans from all parts of the

country met on the 5th of August, among whom were Senators Blaine

and Logan, Marshall Jewell, Thurlow Weed, and Edwards Pierrepont.

I was called upon to make an address. The only passage I wish to

quote is this:

"The Republican party comes before the business men of this country

--with all its evidences of reviving prosperity everywhere--and

asks whether they will resign all these great affairs to the solid

south, headed by Wade Hampton and the Ku-Klux Klan, and a little

segment of these northern states, calling themselves the Democratic

party."

More than a month afterwards, Governor Hampton wrote me a letter

complaining of my connecting him with the "Ku-Klux Klan," and the

following correspondence ensued:

"Doggers' Springs, September 17, 1880.

"To Hon. John Sherman, Secretary of the Treasury.

"Sir:--Some days ago I saw a report of your speech at a conference

held by the national Republican committee, at the Fifth Avenue

Hotel, New York, and you were quoted as having used the following

language: 'And now you are asked to surrender all you have done

into the hands of Wade Hampton and the Ku-Klux, and the little

segment in the north that is called the Democratic party.' May I

ask if you used these words, and, if you did so, did you mean to

connect me, directly or indirectly, with what was known as the Ku-

Klux Klan?

"Requesting an early reply, addressed to me, care of Augustus

Schell, Esq., New York, I am, very respectfully, your obedient

servant,

"Wade Hampton."

"Washington, D. C., September 21, 1880.

"Hon. Wade Hampton, care of Augustus Schell, Esq., New York.

"Sir:--Your note of the 17th inst. is received, in which you inquire

whether, at the conference held by the national Republican committee,

at the Fifth Avenue Hotel, New York, I used the language attributed

to me as follows: 'And now you are asked to surrender all you have

done into the hands of Wade Hampton and the Ku-Klux, and the little

segment in the north that is called the Democratic party.' In

reply, I have to advise you, that while I do not remember the

precise language, I presume the reporter correctly stated, in a

condensed way, his idea of what I said. I no doubt spoke of you

as the leading representative of the Democratic party in the south,

and referred to the Ku-Klux Klan as the representative of the

barbarous agencies by which the Democrats have subverted the civil

and political rights of the Republicans of the south.

"I did not connect you personally with the Ku-Klux Klan. Indeed,

I knew that you had, in one or two important instances, resisted

and defeated its worst impulses. I appreciate the sense of honor

which makes you shrink from being named in connection with it.

Still, you and your associates, leading men in the south, now enjoy

benefits of political power derived from the atrocities of the Ku-

Klux Klan, in which phrase I include all the numerous _aliases_ by

which it has, from time to time, been known in the south. Your

power in the southern states rests upon the actual crimes of every

grade in the code of crimes--from murder to the meanest form of

ballot-box stuffing committed by the Ku-Klux Klan and its kindred

associates, and, as you know, some of the worst of them were

committed since 1877, when you and your associates gave the most

solemn assurance of protection to the freedmen of the south.

"These crimes are all aimed at the civil political rights of

Republicans in the south, and, as I believe, but for these agencies,

the very state that you represent, as well as many other states in

the south, would be represented, both in the Senate and House, by

Republicans. But for these crimes the boast attributed to you,

that one hundred and thirty-eight solid southern votes would be

cast for the Democratic ticket, would be but idle vaporing; but

now we feel that it is a sober truth.

"While I have no reason to believe that you or your northern

associates personally participated in the offenses I have named,

yet, while you and they enjoy the fruits of these crimes, you may,

in logic and morals be classed as I classed you, as joint copartners

with the Ku-Klux Klan in the policy which thus far has been successful

in seizing political power in the south, and which it is hoped, by

the aid of the small segment of the Democratic party in the north,

may be extended to all the departments of the government. It is

in this sense that I spoke of you, the Ku-Klux Klan and the northern

Democratic party.

"Permit me, in conclusion, while frankly answering your question,

to say the most fatal policy for the south would be by such agencies

as I have mentioned to secure again political ascendency in this

country, for I assure you that the manhood and independence of the

north will certainly continue the struggle until every Republican

in the south shall have free and unrestricted enjoyment of equal

civil and political privileges, including a fair vote, a fair count,

free speech and free press, and agitation made necessary to secure

such results may greatly affect injuriously the interests of the

people of the south.

"Very respectfully, your obedient servant,

"John Sherman."

"Charlottesville, Va., October 1, 1880.

"To Hon. John Sherman.

"Sir:--Your letter has been received. As you do not disclaim the

language to which I called your attention, I have only to say that

in using it you uttered what was absolutely false, and what you

knew to be false. My address will be Columbia, S. C.

"I am your obedient servant,

"Wade Hampton."

"Treasury Department, }

"Washington, D. C., October 18, 1880.}

"To Hon. Wade Hampton, Columbia, S. C.

"I have to acknowledge the receipt of your note of the 1st inst.,

handed me unopened by Mr. C. McKinley, a few moments ago, after my

return from the west. I had this morning read what purported to

be an extract of a speech made by you, published in the Charleston

'News and Courier,' and upon your general reputation as a gentleman

had denied that you had made such a speech or written such a letter

as is attributed to you in that paper. What I stated to you in my

letter of September 21, I believe to be true, notwithstanding your

denial, and it can be shown to be true by public records and as a

matter of history. As you had, long before your letter was delivered

to me, seen proper to make a public statement of your views of the

correspondence, I will give it to the press without note or comment,

and let the public decide between us.

"Very respectfully,

"John Sherman."

This correspondence excited a good deal of attention, and broke

off all social relations between us. We afterwards served for many

years in the Senate together, but had no intercourse with each

other except formal recognition while I was president of the Senate.

I always regretted this, for I did not feel the slightest enmity

to General Hampton, and recognized the fact that while enjoying

the office he held as the result of the crimes of the Klan, yet he

and his colleague, M. C. Butler, were among the most conservative

and agreeable gentlemen in the Senate, and the offenses with which

I connected his name were committed by his constituents and not by

himself.

CHAPTER XLI.

MY LAST YEAR IN THE TREASURY DEPARTMENT.

Opening of the 1880 Campaign in Cincinnati--My First Speech Arraigned

as "Bitterly Partisan"--Letter from Garfield Regarding the Maine

Election--Ohio Thought to Be in Doubt--Many Requests for Speeches

--Republican Ticket Elected in Ohio and Indiana--A Strange Warning

from Detroit Threatening Garfield with Assassination--The Latter's

Reply--My Doubts About Remaining in the Treasury Department or

Making an Effort for the Senate--Letter to Dalzell--Last Annual

Report to Congress in December, 1880--Recommendations Regarding

Surplus Revenue, Compulsory Coinage of the Silver Dollar, the

Tariff, etc.--Bills Acted Upon by Congress.

During July and August I received many invitations to speak on

political topics, but declined all until about the 1st of September.

In anticipation of the election of Garfield, and his resignation

as Senator, I was, as early as July, tendered the support of several

members of the legislature who had voted for him for Senator, and

who wished to vote for me in case he resigned. I replied that I

would prefer the position of Senator to any other, that I resigned

my seat in the Senate to accept the office of Secretary of the

Treasury, and would be gratified by a return to my old position,

but only in case it came to me as the hearty choice of the general

assembly. During the month of August the two assistant secretaries,

who had been for a year confined to the department and upon whom

the duties of secretary had devolved during my recent absence, went

on their usual vacation, so that I was fully occupied during office

hours with the routine business of the department.

My first speech of the campaign was made on Monday, the 30th of

August, in Cincinnati. It was carefully prepared, and delivered

in substance as printed. My habit has been for many years, at the

beginning of a political canvass, to write or dictate a speech and

hand it to the press associations, to be printed in the newspapers

only after the speech is made. This is done for the convenience

of the press and to secure an accurate report. The speech at

Cincinnati, thus prepared, was not read by me, but I spoke from

briefs which enabled me to substantially follow it. Subsequent

speeches had to vary according to the nature and mood of the

audience, or the political subject exciting local interest and

attention. At Cincinnati I gave a comparison of the principles,

tendency, and achievements of the two great parties, and the reasons

why the Democratic party wanted a change in the executive branch

of the government. I contrasted the aims and policy of that party,

at each presidential election from 1860 to 1880, with those of the

Republican party, and expressed my opinion of the effects that

would have followed their success at each of those elections. I

stated in detail the results secured during the last four years by

the election of a Republican President. These included the resumption

of specie payments, the refunding and the steady reduction of the

public debt, the faithful collection of the revenue, economy of

public expenditures, and business prosperity for which I gave the

causes, all of which were opposed or denied by the Democratic party.

I entered into detail on the measures proposed by the then Democratic

Congress, the motive of them, and the ruinous effects they would

produce, and alleged that the changes proposed were dictated by

the same policy that was adopted by Buchanan and the active leaders

of the War of the Rebellion and by the corrupt power that controlled

the city of New York. I replied to the charges of fraud made as

to the election of President Hayes, that the alleged fraud consisted

in the judgment of the electoral commission created by the Democrats

that Hayes was duly elected. I narrated the gross crimes of the

Ku-Klux Klan and kindred associations to control the elections in

the south, and the attempted bribery of an elector in Oregon.

This speech was arraigned as bitterly partisan, but it was justified

by facts proven by the strongest evidence. I have recently carefully

read it, and, while I confess that its tone was bitter and partisan,

yet the allegations were clearly justified. At this time such

fraud and violence could not be practiced in the south, for the

tendency of events has quieted public sentiment. The lapse of time

has had a healing effect upon both sections, and it is to be hoped

that hereafter parties will not be divided on sectional lines.

The Cincinnati speech had one merit, in that it furnished speakers

and the public the exact statistics of our financial condition in

advance of my annual report to Congress in December. I made speeches

each week day in Ohio and Indiana until the 11th of September, when

I returned to Washington.

The election in Maine, which occurred early in September, was

unfavorable to the Republican party, and caused General Garfield

some uneasiness. He wrote me the following letter:

"Mentor, Ohio, September 17, 1880.

"Hon. John Sherman, Washington, D. C.

"My Dear Sir:--Yours of the 15th inst. is received. I hear in many

ways the same account which you give of the cause of our falling

off in Maine. The latest news indicates that we have carried the

election after all, but our people claimed too much, and the moral

effect of it may be bad in some of the doubtful states. Still, so

far as I can see, every Republican is more aroused and determined

than ever.

"I think we should now throw all our force into Indiana and Ohio

until the October election. Indiana is now more thoroughly organized

by our people than it has been for many years, and I believe that

nothing can defeat us, except importations and purchases by the

Democracy. I have not known the Republicans of that state so

confident in six years as they now are, and every available help

should be given them to win the fight. I have learned certainly

that the Democrats intend to make a powerful raid upon Ohio, for

the double purpose of beating us if they can, and specially in

hopes that they may draw off our forces in Indiana.

"I know you can accomplish a great deal, even while you are in

Washington, but I hope you will give as much time as possible to

the canvass here and in Indiana--especially give us the last ten

days.

"Very truly yours,

"J. A. Garfield."

I replied on the 22nd of September that the assured election of

Plaisted, the fusion electoral ticket in Maine, and many things in

my correspondence, made me feel exceedingly anxious about the result

of the election, that my advices from Ohio were not satisfactory,

and I felt that we must exert ourselves to the utmost to insure

victory at our October election. "I think from my standpoint here,"

I said, "I can get more certain indications of public opinion than

anyone can while canvassing. I therefore have determined to go to

Ohio the latter part of this week, and to devote the balance of

the time, until the election, to the campaign." I also advised

him that I had arranged to have several other speakers go to Ohio.

To this he replied:

"Mentor, Ohio, September 25, 1880.

"My Dear Sir:--Yours of the 22nd inst. is received. I am glad that

you are coming back to take part in the canvass. Within the last

ten days it has become evident that money is being used in large

amounts in various parts of this state. Reports of this come to

me in so many independent ways that I cannot doubt it. I was in

Toledo on the 22nd to attend the reunion of the 'Army of the

Cumberland,' and my friends there were thoroughly alarmed. They

said the Democrats had an abundance of money, and that those in

Toledo were contributing more than they had done for many years.

"I think our friends should push the business aspect of the campaign

with greater vigor than they are doing, especially the tariff

question which so deeply affects the interests of manufacturers

and laborers. The argument of the 'solid south' is well enough in

its way, and ought not to be overlooked, but we should also press

those questions which lie close to the homes and interests of our

own people.

"Very truly yours,

"J. A. Garfield.

"Hon. John Sherman, Washington, D. C."

About this period I received an invitation to speak in New York,

but doubted the policy of accepting, and answered as follows:

"Washington, D. C., September 20, 1880.

"My Dear Sir:--Your note of the 17th, inviting me to address the

citizens of New York, under the auspices of your club, during the

campaign, is received. Please accept my thanks for the courteous

manner in which your invitation is expressed.

"I will be compelled to remain here until the 4th of October and

then go to Ohio and Indiana to engage in the canvass, which will

carry me to the 15th or 16th of October. I have been urged also

to go to Chicago and Milwaukee, and have made promises in several

cities in the eastern states, especially in Brooklyn; so that I do

not see how it is possible for me to accept your kind invitation.

I have also some doubt whether it would be politic to do so. It

seems to be the determination of a certain class of Republicans in

New York to ignore or treat with dislike President Hayes and his

administration, and to keep alive the division of opinion as to

the removal of Arthur. From my view of the canvass the strength

of our position now is in the honesty and success of the administration.

While I have no desire to contrast it with General Grant's, yet

the contrast would be greatly in favor of President Hayes. The

true policy is to rise above these narrow family divisions, and,

without disparagement of any Republican, unite in the most active

and zealous efforts against the common enemy. Senator Conkling

does not seem to have the capacity to do this, and the body of his

following seems to sympathize with him. I doubt, therefore, whether

my appearance in New York would not tend to make divisions rather

than to heal them, to do harm rather than good. I am so earnestly

desirous to succeed in the election that I would even forgo a self-

defense to advance the cause.

"Very truly yours,

"John Sherman.

"Hon. B. F. Manierre, Ch. Rep. Central Campaign Club, New York."

On the first of October I left Washington for Mansfield and spoke

at a mass meeting there on Saturday evening, the 2nd. The canvass

on both sides was very active and meetings were being held in all

parts of the state. The meeting at Mansfield held in the open

square both in the afternoon and evening, was very large. I spoke

each day except Sunday during the following week, at different

places in Ohio and Indiana. Confidence in Republican success grew

stronger as the October election approached. After the vote was

cast it was found that the Republican state ticket was elected by

a large majority in both these states. In pursuance of previous

engagements, I spoke at Chicago, Racine, and Milwaukee, after the

October election. The speeches at Chicago and Milwaukee were

reported in full and were circulated as campaign documents. During

the latter part of the month of October I spoke at the city of

Washington and in Bridgeport, Norwalk and New Haven, Connecticut,

and at Cooper Institute in the city of New York, and then returned

home to vote at the November election.

The result was the election of a large majority of Republican

electors and the certainty of their voting for Garfield and Arthur

as President and Vice President of the United States. I had done

all that it was possible for me to do to bring about that result

and rejoiced as heartily as anyone, for I thoroughly believed in

the necessity of maintaining Republican ascendency in the United

States, at least until a time when the success of the opposite

party would not endanger any of the national results of the war or

the financial policy of President Hayes' administration.

On the day after the election General Garfield wrote me the following

letter:

"Mentor, Ohio, November 4, 1880.

"My Dear Sir:--Yours of the 1st inst. came duly to hand, and was

read with much interest. The success of the election is very

gratifying. The distrust of the solid south, and of adverse

financial legislation, have been the chief factors in the contest.

I think also that the country wanted to rebuke the attempt of the

Democrats to narrow the issue to the low level of personal abuse.

I am sure that all our friends agree with me that you have done

very important and efficient work in the campaign.

"I may go to Washington before long to look after my personal

affairs. If I do not, I hope to have some other opportunity of

seeing you.

"Very truly yours,

"J. A. Garfield.

"Hon. John Sherman, Washington, D. C."

I received a letter from a Mr. Hudson, of Detroit, which expressed

a fear that General Garfield was in serious danger of assassination,

giving particulars. I sent it at once to Garfield, and received

from him the following answer, very significant in view of the

tragedy that occurred the following summer:

"Mentor, O., November 16, 1880.

"My Dear Sir:--The letter of Mr. Hudson, of Detroit, with your

indorsement, came duly to hand. I do not think there is any serious

danger in the direction to which he refers, though I am receiving

what I suppose to be the usual number of threatening letters on

that subject. Assassination can no more be guarded against than

death by lightning; and it is not best to worry about either. I

expect to go to Washington before long to close up some household

affairs, and I shall hope to see you.

"With kind regard, I am, very truly yours,

"J. A. Garfield.

"Hon. John Sherman, Washington, D. C."

Immediately after the election of General Garfield, and until the

18th of December, there was a continuous discussion as to who should

be the successor to Senator Thurman. This was the senatorship to

which Garfield had been elected and now declined to fill. I received

many letters from members of the legislature expressing their wish

that I should be restored to the Senate, and offering to vote for

me. They generally assumed that I would have the choice between

remaining in the treasury department under President Garfield and

becoming a candidate for the Senate. Among the letters received

by me was one from Mr. Thorpe, a member from Ashtabula county,

Ohio, and a personal friend. I thought it right to tell him frankly

the dilemma in which I was placed by the discussion in the papers.

This letter expressed my feelings in regard to the matter and I

therefore insert it:

"Washington, D. C., November 15, 1880.

"My Dear Sir:--Your letter of the 11th relieves me from some

embarrassment. I am very thankful to you for the tender of your

services and continued hearty friendship. I will avail myself of

it to tell you confidentially the difficulty under which I labor.

"The letter to Dalzell was not intended for publication, but was

simply a hurried reply to one of two or three long letters received

from him. Still the letter stated in substance my feeling, and he

probably intended no wrong but rather thought he would benefit me.

Both before and since, I have been overwhelmed with letters

remonstrating against my leaving my present position, as if I had

any choice.

"As a matter of course, General Garfield must decide this without

haste and free from all embarrassment, but in the meantime I am at

a loss what to do. I cannot properly say to my correspondents that

I would stay in the treasury if invited to do so, nor can I ask

gentlemen to commit themselves until they know definitely what I

wish. I cannot afford to be a candidate unless I expect to succeed.

I believe, from information already received, that I can succeed,

but only after a struggle that is distasteful to me, and which I

cannot well afford. I can only act upon the assumption that General

Garfield will desire to make an entire change in his cabinet, and

upon that basis I would gladly return to the Senate as the only

position I could hold, or, if there was any doubt about election,

I would cheerfully and without discontent retire from public life.

I have now at least a dozen unanswered letters on my table from

members of the legislature, tendering their services, and stating

that I ought to explicitly inform them my wishes, most of them

assuming that I have a choice. I intend to answer them generally

that, if elected, I would consider it the highest honor and I would

then accept and serve. So I say to you: If I enter the canvass

I must depend upon my friends without being able to aid them

actively, and with every advantage in the possession of Foster.

Such a contest, I see, will open up trouble enough in the politics

of Ohio, whatever may be the result. With this explicit statement

you will understand best how to proceed. I would regard the support

of Senator Perkins as of the utmost importance. After awhile I

can give you the names of a score at least of others who avow their

preference for me.

"Very truly yours,

"John Sherman.

"Hon. F. Thorpe, Geneva, O."

The letter to Dalzell referred to was hastily and carelessly written,

without any expectation of its publication. It was as follows:

"To Hon. J. M. Dalzell, Caldwell, Ohio.

"My Dear Sir:--Your kind note of the 4th is received, for which

please accept my thanks. I prefer to do precisely what you recommend,

await the judgment of the general assembly of Ohio, unbiased by

any expression of my wish in the matter referred to. I do not know

what is the desire of General Garfield, but I can see that my

election might relieve him from embarrassment and free to do as he

thinks best in the formation of his cabinet. Again thanking you

for your kind offer, I am very truly yours,

"John Sherman."

The papers, while taking sides between Foster and myself, exaggerated

the danger and importance of the contest and thus unduly excited

the public mind, for either of us would have cheerfully acquiesced

in the decision of the general assembly. Strong appeals were made

to Foster to withdraw, especially after it was known that I would

not be Secretary of the Treasury in the incoming administration.

No such appeals came to me, nor did I take any part in the controversy,

but maintained throughout the position taken in my letter to Mr.

Thorpe.

In November, 1880, I was engaged in the preparation of my annual

report sent to Congress December 6. The ordinary receipts for the

fiscal year ending June 30, 1880, were $333,526,610.98. The total

ordinary expenditures were $267,642,957.78, leaving a surplus

revenue of $65,883,653.20, which, with an amount drawn from cash

balance in treasury, of $8,084,434.21, made a surplus of $73,968,087.41,

which sum was applied to the reduction of the public debt. The

sinking fund for this year was $37,931,643.55, which, deducted from

the amount applied to the redemption of bonds, left an excess of

$35,972,973.86 over the amount actually required for the year.

Compared with the previous fiscal year, the receipts for 1880

increased $62,629,438.23. The increase of expenditures over the

previous year was $25,190,360.48. I estimated that the receipts

over expenditures for the fiscal year ending June 30, 1881, would

be $50,198,115.52.

During the period from 1874 to 1879 the United States had failed

to pay on the public debt $87,317,569.21, that being the deficiency

of the sum fixed by law to be paid during those years for sinking

fund. Deducting from this sum the amount paid in excess for the

fiscal year 1880, there was a balance still due on account of the

sinking fund of about $50,000,000. This would be met by the

estimated surplus of receipts over expenditures during the fiscal

year, 1881, thus making good the whole amount of the sinking fund

as required by law.

The estimated revenue over expenditures for the fiscal year ending

June 30, 1862, including the sinking fund, was $48,000,000.

Upon this favorable statement I recommended to Congress that instead

of applying this surplus revenue, accruing after the current fiscal

year, to the extinction of the debt, taxes be repealed or modified

to the extent of such surplus. A large portion of the surplus of

revenue over expenditures was caused by the reduction of the rate

of interest and the payment on the principal of the public debt.

The reduction of annual interest caused by the refunding since

March 1, 1877, was $14,290,453.50, and the saving of annual interest

resulting from the payment of the principal of the public debt

since that date was $6,144,737.50. The interest was likely to be

still further reduced during the following year, to an amount

estimated at $12,000,000, by the funding of the bonds. To the

extent of this annual saving, amounting to $32,000,000, the public

expenditures would be permanently diminished.

In view of this statement, I recommended that all taxes imposed by

the internal revenue laws, other than those on bank circulation

and on spirits, tobacco and beer, be repealed. I urged that the

tax on state banks should be maintained, not for purposes of revenue,

but as a check upon the renewal of a system of local state paper

money, which, as it would be issued under varying state laws, would

necessarily differ as to conditions, terms and security, and could

not, from its diversity, be guarded against counterfeiting, and

would, at best, have but a limited circulation.

The public debt which became redeemable on and after the 1st of

July, 1881, amounted to $687,350,000. I recommended that to redeem

these bonds there should be issued treasury notes running from one

to ten years, which could be paid off by the application of the

sinking fund as they matured. Such treasury notes would have formed

a popular security always available to the holder as they could

have been readily converted into money when needed for other

investment or business. They would have been in such form and

denominations as to furnish a convenient investment for the small

savings of the people, and fill the place designed by the ten dollar

refunding certificates authorized by the act of February 26, 1879.

I stated my belief that with the then state of the money market a

sufficient amount of treasury notes, bearing an annual interest of

three per cent., could be sold to meet a considerable portion of

the maturing bonds.

Congress did not pass such a law as I recommended, but the plan

adopted and executed by my successor, Mr. Windom, was the best that

could have been devised under existing law, resulting in a very

large reduction of the amount paid for interest yearly. He allowed

the holders of the maturing bonds to retain them at the pleasure

of the government, with interest at the rate of three and a half

per cent.

I recited the action of the department under the resumption act,

but this has already been fully described by me. In respect to

the United States notes I said:

"United States notes are now, in form, security, and convenience,

the best circulating medium known. The objection is made that they

are issued by the government, and that it is not the business of

the government to furnish paper money, but only to coin money.

The answer is, that the government had to borrow money, and is

still in debt. The United States note, to the extent that it is

willingly taken by the people, and can, beyond question, be maintained

at par in coin, is the least burdensome form of debt. The loss of

interest in maintaining the resumption fund, and the cost of printing

and engraving the present amount of United States notes, is less

than one-half the interest on an equal sum of four per cent. bonds.

The public thus saves over seven million dollars of annual interest,

and secures a safe and convenient medium of exchange, and has the

assurance that a sufficient reserve in coin will be retained in

the treasury beyond the temptation of diminution, such as always

attends reserves held by banks."

I expressed the opinion that the existing system of currency, the

substantial features of which were a limited amount of United States

notes (with or without the legal tender quality), promptly redeemable

in coin, with ample reserves in coin and power if necessary to

purchase coin with bonds, supplemented by the circulating notes of

national banks issued upon conditions that would guarantee their

absolute security and prompt redemption, all based on coin of equal

value, and generally distributed throughout the country, was the

best system ever devised, and more free from objection than any

other, combining the only safe standard with convenience for

circulation and security and equality of value.

After a statement of the amount of standard silver dollars issued

under existing law, I described the measures adopted to facilitate

the general distribution and circulation of those coins, and the

great expense incurred by the United States in transporting them.

With all these efforts it was found difficult to maintain in

circulation more than thirty-five per cent. of the amount then

coined. While, at special seasons of the year and for special

purposes, this coin was in demand, mainly in the south, it returned

to the treasury, and its reissue involved an expense for transportation

at an average rate of one-third of one per cent. each time. Unlike

gold coin or United States notes, it did not, to the same extent,

form a part of the permanent circulation, everywhere acceptable,

and, when flowing into the treasury, easily paid out with little

or no cost of transportation. At a later period, when the amount

of silver dollars had largely increased, the department was never

able to maintain in circulation more then $60,000,000.

For the reasons stated I earnestly recommended that the further

compulsory coinage of the silver dollar be suspended, or, as an

alternative, that the number of grains of silver in the dollar be

increased so as to make it equal in market value to the gold dollar,

and that its coinage be left as other coinage to the Secretary of

the Treasury, or the Director of the Mint, to depend upon the demand

for it by the public for convenient circulation. After a statement

of the great cost of the coinage of these dollars, I recommended

that Congress confine its action to the suspension of the coinage

of the silver dollar, and await negotiations with foreign powers

for the adoption of an international ratio. I expressed the

conviction that it was for the interest of the United States, as

the chief producer of silver, to recognize the great change that

had occurred in the relative market value of silver and gold in

the chief marts of the world, to adopt a ratio for coinage based

upon market value, and to conform all existing coinage to that

ratio, while maintaining the gold eagle of our coinage at its

present weight and fineness.

I called attention, also, to the tariff as it then existed. It

was a compilation of laws passed during many succeeding years, and

to meet the necessities of the government from time to time. These

laws furnished the greater part of our revenue, and incidentally

protected and diversified home manufactures. The general principle

upon which they were founded was believed to be salutary. No marked

or sudden change, which would tend to destroy or injure domestic

industries built up upon faith in the stability of existing laws,

should be made in them. I recommended that _ad valorem_ duties

should be converted into specific duties as far as practicable,

and that articles which did not compete with domestic industries,

and yielded but a small amount of revenue, should be added to the

free list. I urged the importance of stability in the rates imposed

on spirits, tobacco and fermented liquors. These articles were

regarded by all governments as proper subjects of taxation. Any

reduction in the rates imposed a heavy loss to the owner of the

stock on hand, while an increase operated as a bounty to such owner.

During that year, the excess of exports over imports amounted to

$167,683,912. The aggregate exports amounted to $835,638,658, an

increase over the previous year of $125,199,217.

The usual statement of the operations of the different bureaus of

the department was made, and, in closing my last annual report as

Secretary of the Treasury, I said:

"The secretary takes pleasure in bearing testimony to the general

fidelity and ability of the officers and employees of this department.

As a rule they have, by experience and attention to duty, become

almost indispensable to the public service. The larger portion of

them have been in the department more than ten years, and several

have risen by their efficiency from the lowest-grade clerks to high

positions. In some cases their duties are technical and difficult,

requiring the utmost accuracy; in others, they must be trusted with

great sums, where the slightest ground for suspicion would involve

their ruin; in others, they must act judicially upon legal questions

affecting large private and public interests, as to which their

decisions are practically final. It is a just subject of congratulation

that, during the last year, there has been among these officers no

instance of fraud, defalcation, or gross neglect of duty. The

department is a well organized and well conducted business office,

depending mainly for its success upon the integrity and fidelity

of the heads of bureaus and chiefs of division. The secretary has,

therefore, deemed it both wise and just to retain and reward the

services of tried and faithful officers and clerks.

"During the last twenty years the business of this department has

been greatly increased, and its efficiency and stability greatly

improved. This improvement is due to the continuance during that

period of the same general policy and the consequent absence of

sweeping changes in the public service; to the fostering of merit

by the retention and promotion of trained and capable men; and to

the growth of the wholesome conviction in all quarters that training,

no less than intelligence, is indispensable to good service. Great

harm would come to the public interests should the fruits of this

experience be lost, by whatever means the loss occurred. To protect

not only the public service, but the people, from such a disaster,

the secretary renews the recommendation made in a former report,

that provision be made for a tenure of office for a fixed period,

for removal only for cause, and for some increase of pay for long

and faithful service."

The chief measure of importance, aside from the current appropriation

bills, acted upon during that session of Congress was a bill to

facilitate the refunding of the national debt. It was pending

without action during the two preceding sessions, but was taken up

in the early part of the third session. As the bill was originally

reported, by Mr. Fernando Wood, from the committee of ways and

means of the House of Representatives, it provided that in lieu of

the bonds authorized by the refunding act of July 14, 1870, bearing

five, four and a half, and four per cent. interest, bonds bearing

interest at the rate of three and a half per cent. to the amount

of $500,000,000, redeemable at the pleasure of the United States,

and also notes to the amount of $200,000,000, bearing interest at

the rate of three and a half per cent., redeemable at the pleasure

of the United States after two years and payable in ten years, be

issued.

The Secretary of the Treasury was authorized to issue any of these

bonds or notes for any of the bonds of the United States, as they

became redeemable, par for par. The bill further provided that

the three and a half per cents. should be the only bonds receivable

as security for national bank circulation.

Had this bill passed, as introduced, any time before the 4th of

March, 1881, it would have saved the United States enormous sums of

money and would have greatly strengthened the public credit. It

was in harmony with the recommendations made by the President and

myself in our annual reports. It was called up in the House of

Representatives for definite action on the 14th of December, 1880,

when those reports were before them. Instead of this action

amendments of the wildest character were offered, and the committee

which reported the bill acquiesced in radical changes, which made

the execution of the law, if passed, practically impossible. The

rate of interest was reduced to three per cent., and a provision

made that no bonds should be taken as security for bank circulation

except the three per cent. bonds provided for by that bill.

Discussion was continued in the House and radical amendments were

made until the 19th of January, 1881, when the bill, greatly changed,

passed the House of Representatives. It was taken up in the Senate

on the 15th of February. Mr. Bayard made a very fair statement of

the terms and objects of the bill in an elaborate speech, from

which I quote the following paragraphs:

"In little more than sixty days from this date a loan of the United

States, bearing five per cent. interest, and amounting to $469,651,050,

will, at the option of the government, become payable. On the 30th

day of June next, two other loans, each bearing six per cent.,

the first for $145,786,500, and the other $57,787,250, will also

mature at the option of the government. These facts are stated in

the last report of the Secretary of the Treasury, and will be found

on page ten of his report of last December. He has informed us

that the surplus revenue accruing prior to the 1st of July, 1881,

will amount to about fifty million dollars, and can and will be

applied in part to the extinguishment of that debt. Bonds maturing

on the 31st of December last were paid out of the accruing revenues.

So that there will remain the sum of $637,350,000, to be provided

for and funded at the option of the government, at such rate of

interest as may be deemed advisable by Congress and can practicably

be obtained.

"The sums that we are dealing with are enormous, affecting the

welfare of every branch of our country's industry and of our entire

people. The opportunity for reducing the rate of interest upon

this enormous sum, and, not only that, but of placing the national

debt more under the control of the government in regard to future

payments, is now before us. The opportunity for doing this upon

favorable terms should not be lost, and the only question before

us, as legislators, is how we can best and most practically take

advantage of the hour."

The bill as modified by the committee of the Senate would have

enabled the treasury department to enter at once on the refunding

of the public debt, and, in the then state of the money market,

there would have been no doubt of the ready sale of the bonds and

notes provided for and the redemption of the five and six per cent.

bonds outstanding. The Senate, however, after long debates,

disagreed to the amendments of the committee, and in substance

passed the bill as it came from the House. The few amendments made

were agreed to by the House, and the bill passed and was sent to

the President on the 1st of March. On the 3rd of March it was

returned by the President with a statement of his objections to

its passage. These were based chiefly on the provision which

required the banks to deposit in the treasury, as security for

their circulating notes, bonds bearing three per cent. interest,

which, in his judgment, was an insufficient security. His message

was as follows:

"To the House of Representatives:--Having considered the bill

entitled 'An act to facilitate the refunding of the national debt,'

I am constrained to return it to the House of Representatives, in

which it originated, with the following statement of my objections

to its passage.

"The imperative necessity for prompt action, and the pressure of

public duties in this closing week of my term of office, compel me

to refrain from any attempt to make a full and satisfactory

presentation of the objections to the bill.

"The importance of the passage, at the present session of Congress,

of a suitable measure for the refunding of the national debt, which

is about to mature, is generally recognized. It has been urged

upon the attention of Congress by the Secretary of the Treasury

and in my last annual message. If successfully accomplished, it

will secure a large decrease in the annual interest payment of the

nation; and I earnestly recommend, if the bill before me shall

fail, that another measure for this purpose be adopted before the

present Congress adjourns.

"While in my opinion it would be wise to authorize the Secretary

of the Treasury, in his discretion, to offer, to the public, bonds

bearing three and a half per cent. interest in aid of refunding,

I should not deem it my duty to interpose my constitutional objection

to the passage of the present bill if it did not contain, in its

fifth section, provisions which, in my judgment, seriously impair

the value and tend to the destruction of the present national

banking system of the country. This system has now been in operation

almost twenty years. No safer or more beneficial banking system

was ever established. Its advantages as a business are free to

all who have the necessary capital. It furnishes a currency to

the public which, for convenience and the security of the bill-

holder, has probably never been equaled by that of any other banking

system. Its notes are secured by the deposit with the government

of the interest-bearing bonds of the United States.

"The section of the bill before me which relates to the national

banking system, and to which objection is made, is not an essential

part of a refunding measure. It is as follows:

'Sec. 5. From and after the 1st day of July, 1881, the three per

cent. bonds authorized by the first section of this act shall be

the only bonds receivable as security for national bank circulation,

or as security for the safekeeping and prompt payment of the public

money deposited with such banks; but when any such bonds deposited

for the purposes aforesaid shall be designated for purchase or

redemption by the Secretary of the Treasury, the banking association

depositing the same shall have the right to substitute other issues

of the bonds of the United States in lieu thereof: _Provided_,

That no bond upon which interest has ceased shall be accepted or

shall be continued on deposit as security for circulation or for

the safe-keeping of the public money; and in case bonds so deposited

should not be withdrawn, as provided by law, within thirty days

after interest has ceased thereon, the banking association depositing

the same shall be subject to the liabilities and proceedings on

the part of the comptroller provided for in section 5234 of the

Revised Statutes of the United States: _And provided further_,

That section 4 of the act of June 20, 1874, entitled: "An act

fixing the amount of United States notes, providing for a redistribution

of the national bank currency, and for other purposes," be, and

the same is hereby, repealed; and sections 5159 and 5160 of the

Revised Statutes of the United States be, and the same are hereby,

re-enacted.'

"Under this section it is obvious that no additional banks will

hereafter be organized, except possibly in a few cities or localities

where the prevailing rates of interest in ordinary business are

extremely low. No new banks can be organized, and no increase of

the capital of existing banks can be obtained, except by the purchase

and deposit of three per cent. bonds. No other bonds of the United

States can be used for the purpose. The one thousand millions of

other bonds recently issued by the United States, and bearing a

higher rate of interest than three per cent., and therefore a better

security for the bill-holder, cannot, after the 1st of July next,

be received as security for bank circulation. This is a radical

change in the banking law. It takes from the banks the right they

have heretofore had under the law to purchase and deposit, as

security for their circulation, any of the bonds issued by the

United States, and deprives the bill-holder of the best security

which the banks are able to give, by requiring them to deposit

bonds having the least value of any bonds issued by the government.

"The average rate of taxation of capital employed in banking is

more than double the rate of taxation upon capital employed in

other legitimate business. Under these circumstances, to amend

the banking law so as to deprive the banks of the privilege of

securing their notes by the most valuable bonds issued by the

government will, it is believed, in a large part of the country,

be a practical prohibition of the organization of new banks, and

prevent the existing banks from enlarging their capital. The

national banking system, if continued at all, will be a monopoly

in the hands of those already engaged in it, who may purchase

government bonds bearing a more favorable rate of interest than

the three per cent. bonds prior to next July.

"To prevent the further organization of banks is to put in jeopardy

the whole system, by taking from it that feature which makes it,

as it now is, a banking system free upon the same terms to all who

wish to engage in it. Even the existing banks will be in danger

of being driven from business by the additional disadvantages to

which they will be subjected by this bill. In short, I cannot but

regard the fifth section of the bill as a step in the direction of

the destruction of the national banking system.

"Our country, after a long period of business depression, has just

entered upon a career of unexampled prosperity.

"The withdrawal of the currency from circulation of the national

banks, and then enforced winding up of the banks in consequence,

would inevitably bring a serious embarrassment and disaster to the

business of the country. Banks of issue are essential instruments

of modern commerce. If the present efficient and admirable system

of banking is broken down, it will inevitably be followed by a

recurrence to other and inferior methods of banking. Any measure

looking to such a result will be a disturbing element in our

financial system. It will destroy confidence and surely check the

growing prosperity of the country.

"Believing that a measure for refunding the national debt is not

necessarily connected with the national banking law, and that any

refunding act would defeat its own object, if it imperiled the

national banking system, or seriously impaired its usefulness; and

convinced that section 5 of the bill before me would, if it should

become a law, work great harm, I herewith return the bill to the

House of Representatives for that further consideration which is

provided for in the constitution.

"Rutherford B. Hayes.

"Executive mansion, March 3, 1881."

Preceding this message, during the last week in February, there

was a serious disturbance in the money market, especially in

connection with the national banks, caused by a fear that the bill

would become a law. Appeals were made to me to furnish relief.

All I could do was to purchase $10,000,000 of bonds to be paid from

an overflowing treasury, but the veto of the President settled the

fate of the bill.

CHAPTER XLII.

ELECTED TO THE SENATE FOR THE FOURTH TIME.

Blaine Appointed Secretary of State--Withdrawal of Governor Foster

as a Senatorial Candidate--I Am Again Elected to My Old Position

to Succeed Allen G. Thurman--My Visit to Columbus to Return Thanks

to the Legislature--Address to Boston Merchants on Finances--Windom

Recommended to Succeed Me as Secretary of the Treasury--Personal

Characteristics of Garfield--How He Differed from President Hayes

--The Latter's Successful Administration--My One Day out of Office

in Over Forty Years--Long Animosity of Don Piatt and His Change of

Opinion in 1881--Mahone's Power in the Senate--Windom's Success in

the Treasury--The Conkling-Platt Controversy with the President

Over New York Appointments.

In the latter part of November, 1880, General Garfield came to

Washington and called upon Mr. Blaine, who, it was understood, was

to be Secretary of State. Garfield came to my house directly from

Blaine's and informed me that he had tendered that office to Blaine

and that it was accepted. He said that Blaine thought it would

not be politic to continue me as Secretary of the Treasury, as it

would be regarded as an unfriendly discrimination by other members

of Hayes' cabinet. I promptly replied that I agreed with the

opinion of Blaine, and was a candidate for the Senate. It was then

understood that Garfield was committed to Foster for the vacancy

in the Senate, but this he denied, and, whatever might have been

his preference, I am convinced he took no part in the subsequent

contest.

On the 16th of December, Thomas A. Cowgill, speaker of the House

of Representatives, of Ohio, wrote a note to Governor Foster advising

his withdrawal "for harmony in our counsels and unity in our action."

On the next day, after advising with leading Republicans, Foster,

in a manly letter, declined further to be a candidate for Senator.

Prior to the withdrawal of Foster I received a note from General

Garfield from Mentor, Ohio, under date of December 15, 1880, in

which he said: "I am glad to see that the unpleasant matters

between yourself and Governor Foster have been so happily adjusted,

and I am quite sure that a little further understanding will remove

all dangers of a personal contest, which might disturb the harmony

of the party in Ohio."

I subsequently received the following note from Garfield:

"Mentor, O., December 22, 1880.

"My Dear Sir:--Yours of the 20th inst. came duly to hand. I

appreciate what you say in reference to personal and Ohio appointments.

The case of Swaim is so exceptional that I hope it will not be

taken as a precedent for what is to come. I am greatly gratified

at the happy turn which the relations between Foster and yourself

have taken.

"I will forward my declination of the senatorship in time to reach

the general assembly on the first day of its session.

"I hope you will not fail to visit me on your trip to Ohio. Mrs.

Garfield joins me in the hope that Mrs. Sherman will accompany you.

"Very truly yours,

"J. A. Garfield.

"Hon. John Sherman, Washington, D. C."

In response to this and former requests I visited General Garfield

at his residence at Mentor, and discussed with him a multitude of

subjects that he suggested, among them the selection of his cabinet,

and the public questions pending in Congress.

The proceedings in the Republican caucus, on the 11th of January,

1881, soon after the Ohio legislature met, as narrated in the public

press at the time, were exceedingly flattering. General Jones, of

Delaware, made the nominating speech, reciting at considerable

length, and with high praise, my previous public service. Peter

Hitchcock, a distinguished member, seconded the nomination with

another complimentary speech. It was supposed that Judge W. H.

West, a leading lawyer and citizen, would be placed in nomination,

but his spokesman, Judge Walker, no doubt with the approval of

Judge West, moved that my nomination be made unanimous, which was

done. Upon being notified of this I sent the following telegram:

"Washington, D. C., January 11, 1881.

"Hon. J. Scott, Chairman.

"Please convey to the Republican members of the two houses of the

general assembly my heartfelt thanks for their unanimous nomination

for the position of United States Senator. No words can express

my sense of grateful obligation to the people of Ohio for their

long continued partiality. I can assure you that, if elected, I

will, with diligence and fidelity, do my utmost to discharge the

duties assigned me.

"John Sherman."

On the 18th of January I was duly elected Senator as successor of

Allen G. Thurman, who received the Democratic vote.

In accordance with an old custom in Ohio I went to Columbus on the

20th of January to return my thanks to the legislature, and was

received in the senate chamber by the two houses. I was escorted

to a chair with Governor Foster on my right and Governor Dennison

on my left, Governor Foster presiding. I was introduced by Governor

Foster in a generous and eloquent speech, closing as follows:

"Now, gentlemen, a year ago at this time we were here present to

meet General Garfield, to greet him as United States Senator, and

to listen to his words of thanks for the great honor conferred upon

him. We are met to-night for the purpose of greeting the Senator

elected to-day, and to listen to his words of thanks for the great

honor conferred upon him. This gentleman has been in public life

twenty-six years. For six years he served as a Member of Congress

from the Mansfield district, with credit and with distinction.

Thrice elected a United States Senator before, for sixteen years

he occupied the position of United States Senator, ever in the

front rank of the intellectual giants composing that body. Called

hence to be Secretary of the Treasury, this distinguished gentleman

has filled that place with honor. He has been at all times the

friend of resumption and of the prosperity of the people. To him,

perhaps, more than to any other one man, is due the resumption of

specie payments and the prosperity of this people to-day. As a

great financier he stands as a peer with Hamilton, with Chase.

Gentlemen, you have selected wisely and well. I now have the

pleasure of presenting John Sherman, Senator-elect from the State

of Ohio."

To this I responded, in part, as follows:

"Gentlemen, Senators, Members of the General Assembly:--My first

duty is to return to you my grateful thanks for the high honor you

have conferred upon me in selecting me for the fourth time a Member

of the Senate of the United States. Four years ago I assumed a

somewhat different office. And now, having been honored by you by

being transferred to the position formerly occupied by me, I feel

very much like a traveler who has made a long journey into a far

distant country and who is returning home in safety and honor.

The place I now occupy has been one of great embarrassment and

difficulty. I have been away from the people of my native state,

with but scarce a few fleeting, short visits, and have lost the

acquaintances I have had with so many of you, and have not been

able to form new acquaintances among you. I find among the members

of the general assembly but comparatively few of those whom I knew

in the olden times.

"I assumed the duties of the office of which I speak under

circumstances of great embarrassment. I was held up before the

public for a long time as one who was pursuing a policy that brought

woes unnumbered--greater than befell the Greeks between Achilles

and Agamemnon. All the evils that fell upon society in the United

States during the period, all the grave distress, was simply

attributed to me as a fault. I was compelled to say 'No' a thousand

times where I would gladly have said 'Yes.' I was compelled to

decline the advice of men honestly given for a good purpose, because

in my judgment that advice would not promote the public good. And

now, having been elected by you under those adverse circumstances,

I feel my heart overflowing with gratitude, and have no words with

which to utter my thanks. I am glad, however, of the assurance

you have given me by the unanimous nomination of my Republican

friends, and by the courtesy, kindness and forbearance of my

adversaries.

"I am glad to know and feel the assurance that you now believe

that, under the trying circumstances, I did the best I could to

advance the common interest of our common country.

"And I am glad to approve the votes that were given by my Democratic

fellow-citizens here in the contest yesterday and to-day. If any

man could be chosen from the State of Ohio to advocate in the

American Senate the principles of the Democratic party, there is

no man in Ohio, or in the United States, more deserving of that

honor than Allen G. Thurman. For many years he and I served together

as representatives of opposing parties. We, each with the vigor

and power we could, endeavored to impress our views upon the public,

to carry out the line of policy to which our political friends were

devoted. And in all that time no words of unkindness, no words of

asperity, have passed between us. We never brought Ohio quarrels

before the Senate of the United States, and always found that

honesty and ability were entirely consistent with gentlemanly

courtesy between political opponents.

"And I wish also to return my grateful acknowledgments to Governor

Foster for the kindly language with which he has introduced me to

you, and to many distinguished citizens of Ohio who, by their kind

and generous forbearance, have enabled you, without division, to

send a Senator to the Congress of the United States without a

quarrel, a contest or a struggle, and I feel under obligations to

the gentleman who has introduced me largely for this distinguished

honor and courtesy.

"I can only say then, in conclusion, fellow-citizens, that I am

glad that the opportunity of the office you have given me will

enable me to come back here home to Ohio to cultivate again the

relations I had of old. It is one of the happiest thoughts that

comes to me in consequence of your election that I will be able to

live again among you and to be one of you, and I trust in time to

overcome the notion that has sprung up within two or three years

that I am a human iceberg, dead to all human sympathies. I hope

you will enable me to overcome that difficulty. That you will

receive me kindly, and I think I will show you, if you doubt it,

that I have a heart to acknowledge gratitude--a heart that feels

for others, and willing to alleviate where I can all the evils to

which men and women are subject. I again thank you from the bottom

of my heart."

Among the many incidents in my life I recall this as one of the

happiest, when the bitterness and strife of political contests were

laid aside and kindness and charity took their place. I am glad

to say that the same friendly relations that existed between Senator

Thurman and myself have always been maintained with each of my

colleagues, without distinction of party.

Early in January I had accepted an invitation of the merchants of

Boston to attend the annual dinner of their association on the 31st

of that month. While the dinner was the stated object, yet I knew

that the speeches to be made were the real cause of the meeting.

These were to be made by Governor Long, Stewart L. Woodford and

others, real orators, while I was expected to talk to them about

money, debt and taxes. I met their wishes by a careful statement

of the mode of refunding, or, to define the word, the process of

reducing the burden of the public debt by reducing the rate of

interest. I stated at length the measures executed by Hamilton,

Gallatin and others, in paying in full the Revolutionary debt and

that created by the War of 1812, and those adopted in recent times.

The mode at each period was similar, but the amount of recent

refundings was twenty times greater than the national debt at the

beginning of the government, and our surplus revenue for that one

year just past would have paid the debt of the United States at

the close of the Revolutionary War. In all stages of our history

we have preserved the public faith by the honest discharge of every

obligation. Long, Woodford and others made eloquent speeches, and,

on the whole, the "dinner" was a pronounced success.

After my return to Washington, Garfield continued to write me

freely, especially about the selection of the Secretary of the

Treasury. In a note dated February 14 he gave me the names of a

number of prominent men and his impressions about them, but I do

not feel at liberty to insert it. In my answer of the date of

February 16, after expressing my opinion of those named, I said:

"Since our last conversation in Mentor I have turned this important

matter over and over again in my mind, and I drift back pretty

nearly to the opinion I then expressed, that, assuming that a

western man is to be appointed, my judgment would lead me to select,

first, Windom. . . . He is certainly a man of high character, of

pleasant manners, free from any political affiliations that would

be offensive to you, on good terms with all, yet a man of decision."

I knew Garfield well. From his early advent in 1861 in the

legislature of Ohio, when I was a candidate for the Senate, to the

date of his death, I had every opportunity to study his character.

He was a large, well developed, handsome man, with a pleasing

address and a natural gift for oratory. Many of his speeches were

models of eloquence. These qualities naturally made him popular.

But his will power was not equal to his personal magnetism. He

easily changed his mind, and honestly veered from one impulse to

another. This, I think, will be admitted by his warmest friends.

During the trying period between his election and inauguration his

opinions wavered, but Blaine, having similar personal qualities,

but a stronger will, gained a powerful influence with him. When

I proposed to him to be a delegate at large to the Chicago convention,

he no doubt meant in good faith to support my nomination. When

his own nomination seemed probable he acquiesced in, and perhaps

contributed to it, but after his election he was chiefly guided by

his brilliant Secretary of State.

There was a striking contrast between the personal qualities of

Garfield and Hayes. Hayes was a modest man, but a very able one.

He had none of the brilliant qualities of his successor, but his

judgment was always sound, and his opinion, when once formed, was

stable and consistent. He was a graduate of Kenyon college and

the law school at Cambridge. He had held several local offices in

Cincinnati, had served with high credit in the Union army, and had

attained the rank of major general by conspicuous heroism in battle.

He had been twice elected a Member of Congress from Cincinnati and

three times as Governor of Ohio, and in 1876 was elected President

of the United States. The contest which was ended by his inauguration

has already been referred to. During his entire term, our official

and personal relations were not only cordial, but as close and

intimate as that of brothers could be. I never took an important

step in the process of resumption and refunding, though the law

vested the execution of these measures in my office, without

consulting him. Yet, while expressing his opinion, he said this

business must be conducted by me, and that I was responsible.

Early in his administration we formed the habit of taking long

drives on each Sunday afternoon, in the environs of Washington.

He was a regular attendant with Mrs. Hayes, every Sunday morning,

at the Methodist Episcopal church, of which she was a member. This

duty being done we felt justified in seeking the seclusion of the

country for long talks about current measures and policy. Each of

us was prepared with a memorandum of queries. My coachman, who

has been with me for twenty years, could neither heed nor hear.

We did not invade any of the departments of the government outside

of the treasury and his official functions as President. This

exchange of opinion was of service to the public, and gave to each

of us the benefit of an impartial opinion from the other.

Among the multitude of public men I have met I have known no one

who held a higher sense of his duty to his country, and more

faithfully discharged that duty, than President Hayes. He came

into his great office with the prejudice of a powerful party against

him, caused by a close and disputed election. This was unjust to

him, for the decision was made by a tribunal created mainly by its

representatives. He went out of office at the close of his term

with the hearty respect of the American people, and his administration

may be placed as among the most beneficial and satisfactory in the

history of the republic.

When near the close of his term, he gave the usual dinner to the

members of the outgoing and the incoming cabinets. It was purely

an official dinner, but Hayes said that there were two gentlemen

present who were not in office. We looked around to see who the

unhappy two were, and found they were Garfield and myself. Garfield

had not yet become President and I had resigned as secretary the

day before. This happened to be the only day that I was not in

public office since March 4, 1855.

On the 3rd of March I delivered to the President my resignation,

as follows:

'Washington, March 3.

"Hon. R. B. Hayes, President United States.

"My Dear Sir:--Having been elected a Member of the Senate of the

United States, I have the honor to resign the office of Secretary

of the Treasury, to take effect this day. In thus severing our

official relations, I avail myself of the opportunity to express

my grateful appreciation and heartfelt thanks for the support and

assistance you have uniformly given me in the discharge of the

duties of that office. I shall ever cherish with pleasant memories

my friendly association with you as a member of your cabinet, and

shall follow you in your retirement from your great office with my

best wishes and highest regards.

"Very truly your friend,

"John Sherman."

During my service as Secretary of the Treasury I had been arraigned

in every issue of the Sunday "Capital," a newspaper published in

Washington, in the severest terms of denunciation, by Don Piatt,

the owner of the paper. He was a brilliant but erratic writer,

formerly a member of the Ohio legislature and a native of that

state. I believed that his animosity to me grew out of my re-

election to the Senate in 1865, when General Schenck, who was warmly

supported by Piatt, was my competitor. Schenck and I always

maintained friendly relations. He served his district long and

faithfully in the House of Representatives, was a brilliant debater,

had the power of condensing a statement or argument in the fewest

possible words, and uttering them with effective force. Next to

Mr. Corwin, and in some respects superior to him, Schenck was ranked

as the ablest Member of the House of Representatives from Ohio

during his period of active life, from 1840 to his death, at

Washington, D. C., March 23, 1890. Schenck freely forgave me for

his defeat, but Piatt never did.

At the close of my term as secretary, much to my surprise, Piatt

wrote and published in his paper an article, a portion of which I

trust I will be pardoned for inserting here:

"When John Sherman took the treasury, in March, 1877, it was plain

that the _piece de resistance_ of his administration would be the

experiment of the resumption act, which John, as chairman of the

Senate finance committee, had elaborated two years before, and

which was then just coming upon the threshold of practical test.

The question at issue was whether resumption of specie payments,

after eighteen years of suspension, could be accomplished through

the operation of laws of Congress, which, if not absolutely in

conflict with the laws of political economy, were, to every visible

appearance, several years in advance of them. Of course, the

primary effect of the appreciation of our paper towards par with

the standard of coin was the enhancement of the purchasing power

of the circulating medium. That made it hard to pay debts which

had been contracted on low scales of purchasing power. That which

had been bought for a dollar worth sixty cents, must be paid for

with a dollar worth eighty, ninety, or a hundred cents, according

to the date on which the contract matured. Of course, such a

proceedings created an awful squeeze. Many men, struggling under

loads of debt, found the weight of their obligations growing upon

them faster than their power to meet, and they succumbed.

"For all this John Sherman was blamed. He was named 'The Wrecker,'

and the maledictions poured upon his head during the years 1877

and 1878 could not be measured. Every day the columns of the press

recorded new failures, and every failure added to the directory of

John Sherman's maledictors. But the man persevered. And now,

looking back over the record of those two years, with all their

stifled ambitions and ruined hopes, the grim resolution with which

John, deafening his ears to the cry of distress from every quarter,

kept his eye fixed upon the single object of his endeavor, seems

hardly human--certainly not humane. And yet there are few reasoning

men to be found now ready to deny that it was for the best, and,

taken all in all, a benefaction to the country; one of those sad

cases, in fact, where it is necessary to be cruel in order to be

kind.

"We were not a supporter of John Sherman's policy at any period of

its crucial test. We did not believe that his gigantic experiment

could be brought to a successful conclusion. The absurd currency

theories which were from time to time set up in antagonism to his

policy never impressed us; our disbelief was based upon our fear

that the commercial and industrial wreckage, consequent upon an

increase of forty per cent. in the purchasing power of money within

three years, would be infinitely greater than it turned out to be,

and, so being, would overwhelm the country in one common ruin.

But we were mistaken. John Sherman was right. And it is but common

frankness to say of him, even as one would give the devil his due,

that he builded wiser than we knew--possibly wiser than he knew

himself. At all events, John builded wisely.

"He took the treasury at a period when it was little more than a

great national bank of discount, with rates varying from day to

day; the coin standard a commodity of speculation on Wall street;

the credit of the government a football in the markets of the world;

and our bonds begging favor of European capitalists. He leaves it

what it ought to be--a treasury pure and simple, making no discounts,

offering no concessions, asking no favors; the board that once

speculated in coin as a commodity abolished, doors closed by reason

of occupation gone; the credit of our government at the head of

the list of Christendom; since we are launching at par a three per

cent. consol, which even England, banking house of the universe,

has never yet been able to maintain steadily above 97.

"This is no small achievement to stand as the record of four years.

It is an achievement that entitles the man who accomplished it to

rank as one of the four great American financiers who really deserve

the title--Robert Morris, Albert Gallatin, Salmon P. Chase, and

John Sherman.

"We take off our hat to John; not because we like him personally,

but because we admire the force of character, the power of intellect

and the courage of conviction that enabled him to face his

difficulties, surmount his obstacles and overcome the resistance

he met.

"The treasury he took up in 1877 was a battle ground. The treasury

he resigns to his successor in 1881 is a well-ordered machine of

red tape and routine, requiring for its future successful administration

little else than mediocrity, method and _laissez faire_. As we

said before, we take off our hat to John. He is not a magnetic

man like Blaine, not a lovable man like our poor, dear friend Matt.

Carpenter, not a brilliant man like our Lamar; not like any of

these--warm of temperament, captivating of presence or dazzling of

intellectual luminosity; but he is a great man, strong in the cold,

steadfast nerve that he inherits from his ancestor, and respectable

in the symmetry of an intellect which, like a marble masterpiece,

leaves nothing to regret except the thought that its perfection

excludes the blemish of a soul. John Sherman will figure creditably

in history. Mankind soon forgets the sentimental acrimony of the

moment, provoked by the suffering of harsh processes, and remembers

only the grand results. Thus John Sherman will figure in history

as the man who resumed specie payments; and in that the visiting

statesman of 1876 and the wrecker of 1877-78 will be forgotten.

We congratulate John upon his translation into the history of

success as heartily as if we had been his supporter in the midst

of all his tribulations. Bully for John."

George Bancroft, the eminent historian, lived in Washington for

many years during the latter part of his life. His house was always

an attractive and hospitable one. I had many interesting conversations

with him, mainly on historical subjects. Both of us carefully

eschewed politics, for to the end of his life, I think, he always

regarded himself as a Democrat. I insert an autograph letter from

him, written at the age of eighty-one.

"1623 H Street, }

"Washington, D. C., February 22, 1881.}

"My Dear Mr. Sherman:--I thank you very much for the complete

statement, you were very good to send me, of the time and amounts

of payments made to Washington as President. Congratulating you

on the high state of the credit of the United States, I remain,

ever, dear Mr. Secretary,

"Very truly yours,

"Geo. Bancroft."

Before closing my recollections of the administration of President

Hayes I ought to express my high appreciation of my colleagues in

his cabinet. It was throughout his term a happy family. I do not

recall a single incident that disturbed the sincere friendship of

its members, nor any clashing of opinions that produced discord or

contention. Neither interfered with the duties of the other. The

true rule was acted upon that the head of each department should

submit to the President his view of any important question that

arose in his department. If the President wished the opinion of

his cabinet on any question, he submitted it to the cabinet but

took the responsibility of deciding it after hearing their opinions.

It was the habit of each head of a department to present any

questions of general interest in his department, but as a rule he

decided it with the approbation of the President. Evarts was always

genial and witty, McCrary was an excellent Secretary of War. He

was sensible, industrious and prudent. Thompson was a charming

old gentleman of pleasing manners and address, a good advocate and

an eloquent orator, who had filled many positions of honor and

trust. The President regretted his resignation, to engage in the

abortive scheme of De Lesseps to construct the Panama Canal.

Attorney General Devens was a good lawyer and judge and an accomplished

gentleman. He frequently assisted me in my resumption and refunding

operations, and, fortunately for me, he agreed with me in my opinions

as to the legality and expedience of the measures adopted. General

Carl Schurz was a brilliant and able man and discharged the duties

of Secretary of the Interior with ability. I had known him in the

Senate as an admirable and eloquent debater, but in the cabinet he

was industrious and practical and heartily supported the policy of

the President and was highly esteemed by him. Key, of Tennessee,

was selected as a moderate Democrat to represent the south. This

was an experiment in cabinet making, cabinets being usually composed

of members of the same party as the President, but Key proved to

be a good and popular officer. The two vacancies that occurred by

the resignations of McCrary and Thompson were acceptably filled by

Governor Ramsey, of Minnesota, and Goff, of West Virginia. Each

of these gentlemen contributed to the success of Hayes' administration,

and each of the heartily sympathized with, and supported the measures

of, the treasury department.

On the 4th day of March, 1881, I attended the special session of

the Senate, called by President Hayes, and took the oath prescribed

by law. In conformity with the usages of the Senate, I lost my

priority on the committee on finance by the interregnum in my

service, but was made chairman of the committee on the library,

and a member of the committees on finance, rules, and privileges

and elections. Mr. Morrill, of Vermont, became chairman of the

committee on finance, and, by the courtesy of the other members,

I was placed next to him on that committee. Our relations since

our entrance together, in 1854, into the House of Representatives

had been so intimate and cordial that it made no practical difference

which of us sat at the head of the table. When I recalled the

facts that in both the Senate and House of Representatives I had

been chairman of the financial committee, and Mr. Morrill a member,

that my service in the treasury department did not impair my fitness

as chairman, but rather improved it, and that under precisely the

same conditions I had restored to Mr. Fessenden his former position,

I felt piqued, but my feelings did not extend to Mr. Morrill, for

whom I had the highest respect and confidence, and with whom I

rarely differed on any public question. He is now the Nestor of

the Senate, wonderfully vigorous in mind and body.

The chief subject of political interest in this session was the

attitude of William Mahone, a Senator from Virginia. He had been

a distinguished officer in the Confederate army, was a small man

physically, but of wonderful vitality, of undoubted courage and

tenacity. He had broken from the Democratic party, of which he

had been a member, and had been elected a Senator on local issues

in Virginia, arising chiefly out of the debt of that state. When

he entered the Senate, that body was so equally divided that his

vote would determine which party should have the control of its

organization. He quickly made his choice. He was viciously assailed

by Senator Hill, of Georgia, who, not by name but by plain inference,

charged Mahone with disgracing the commission he held. The reply

of Mahone was dramatic and magnetic. His long hair, his peculiar

dress and person, and his bold and aggressive language, attracted

the attention and sympathy of the Senate and the galleries. He

opened his brief speech as follows:

"Mr. president, the Senator has assumed not only to be the custodian

here of the Democratic party of this nation; but he has dared to

assert his right to speak for a constituency that I have the

privilege, the proud and honorable privilege on this floor, of

representing without his assent, without the assent of such Democracy

as he speaks for. I owe them, sir, I owe you [addressing Mr. Hill],

and those for whom you undertake to speak, nothing in this chamber.

I came here, sir, as a Virginian, to represent my people, not to

represent the Democracy for which you stand. I come with as proud

a claim to represent that people as you to represent the people of

Georgia, won on field where I have vied with Georgians whom I

commanded and others in the cause of my people and of their section

in the late unhappy contest, but, thank God, for the peace and good

of the country that contest is over, and as one of those who engaged

in it, and who has neither here nor elsewhere any apology to make

for the part taken, I am here by my humble efforts to bring peace

to this whole country, peace and good will between the sections,

not here as a partisan, not here to represent the Bourbonism which

has done so much injury to my section of the country."

The debate that followed soon settled the position of General

Mahone. He acted with the Republican party. During the whole of

this session, which extended to May 20, little was done except to

debate Virginia politics, of which Mahone was the center. His vote

was decisive of nearly every question presented. I took part in

the long debate on the election of officers of the Senate, mainly

with Senator Bayard. My sympathy was with Mahone, as I felt that,

whatever his view of the debt question in Virginia was, he was

right on the reconstruction of the south and in opposition to the

bitter sectionalism of the Democratic party in that state. In

replying to Mr. Bayard I said I agreed with him in the principle

that the majority must rule. I claimed, however, that when the

action of a minority went beyond a reasonable delay it became

revolution and, in a word, was worse than revolution, it was treason;

that under the senate rules, and in conformity with them, this

government might be as absolutely destroyed as the southern

Confederates would have destroyed it if they had succeeded; that

the rules were intended to be construed with reason and judgment;

that the minority had certain rights to interpose dilatory motions

in order to delay and weary out the will of the majority, but when

it went beyond that limit it entered upon dangerous ground; that

the simple question was whether the Senate should elect its officers

by a majority vote or whether the minority should force the retention

of those then in office. The session closed without electing

officers of the Senate, and was in substance a debating society

doing nothing but talk and acting upon presidential appointments.

The cabinet of President Garfield, as finally selected, was a good

one and was promptly confirmed. Mr. Blaine, for the head of it,

was determined upon early after the election, but the other members

were not decided upon until near the inauguration. Mr. Windom

certainly proved himself a very able and accomplished Secretary of

the Treasury during the short period of his tenure. As I held

myself in a large measure responsible for his appointment, I took

a great interest in his success. He conferred with me freely about

the best mode of refunding the large amount of bonds that became

due on or before the 1st of July. Congress having failed to pass

any law to provide for the refunding of this debt, he resorted to

an ingenious expedient, which answered the purpose of refunding.

Under a plan which was his own device there were called in, for

absolute payment on July 1, 1881, about $200,000,000 of bonds,

mainly the six per cent. bonds of 1861, but permission was given

to the holders of the bonds to have them continued at the pleasure

of the government, with interest at the rate of three and a half

per cent. per annum, provided the holder should so request, and

the bonds should be received at the treasury for that purpose on

or before the 10th of May, 1881. The plan proved entirely

satisfactory. There were presented in due time, for continuance

at three and a half per cent., the amount of $178,055,150 of bonds,

leaving to be paid off from surplus revenue $24,211,400, for which

the treasury had ample resources. Having succeeded in disposing

of the six per cent. bonds, he gave notice that the coupon five

per cent. bonds of the loans of July 14, 1870, and January 20,

1871, would be paid on August 12, 1881, with a like privilege of

continuing the bonds at three and a half per cent. to such of the

holders who might present them for that purpose on or before July

1, 1881. At the same time the treasurer offered to receive for

continuance any of the uncalled registered bonds of that loan to

an amount not exceeding $250,000,000, the remainder of the loan

being reserved with a view to its payment from the surplus revenues.

The annual saving in interest by the continuance of these bonds

amounted to $10,473,952.25. I heartily approved this plan. In a

reported interview of the 14th of April I said:

"I see no difficulty in fully carrying out Secretary Windom's

policy, as far as developed. He has ample means for reducing the

interest on the five and six per cent. bonds. He can pay off all

those who wish to be paid in money, in strict accordance with the

terms of these bonds, leaving the mass of them at three and a half

per cent. interest, payable at the pleasure of Congress. This is

not only for the public interest, but is on the clear line of his

power and duty. Indeed, I think it is better for the country than

any refunding plan that would be carried out under a new law. The

old securities remain as redeemable bonds, bearing as low a rate

of interest as any new bonds would bear, which could be now sold

at par, and they are more readily payable with surplus revenue than

any new bonds could be. If it should appear next session that a

three per cent. bond would sell at par, that can be authorized.

Secretary Windom is cautious and careful, and has done the very

best for the public that is possible."

"Do you think the public will be likely to respond largely to his

efforts?"

"Yes, I have no doubt about it, unless an unforseen or sudden

revulsion occurs."

Mr. Windom demonstrated his ability, not only in the plan of

refunding the debt, but in the general conduct and management of

his department.

The administration of Garfield encountered the same difficulty as

that of Hayes in the selection of officers in the State of New

York. The question was whether appointments in New York should be

made by the President or by a Senator from that state. E. A.

Merritt, collector of the port of New York, having been nominated

for consul general at London, William H. Robertson was nominated

to the Senate in his place. When the Senate considered this

nomination Senator Conkling and his colleague, Senator Platt,

opposed it, not for unfitness, but for the reason that they had

not been consulted in this matter, and that the selection was an

insult and in violation of pledges given Conkling by the President.

When this opposition was known, the President withdrew previous

appointments from that state, in order that the Senate might act

upon the nomination of collector and definitely determine whether

he or the Senators should appoint United States officers in New

York. Finding the nomination of Robertson would be confirmed, both

Senators resigned on the 16th of May, and made their appeal to the

legislature of New York for re-election. If they had been returned

to the Senate, the President would have been powerless to appoint

anyone in New York without consulting the Senators, practically

transferring to them his constitutional power. Fortunately for

the country the legislature of New York elected E. C. Lapham and

Warner Miller in the places of Conkling and Platt.

How far, if at all, the excitement of this contest led to the

assassination of Garfield by Guiteau cannot be known; yet, this

tragedy occurring soon after the contest, the popular mind connected

the two events, and the horror and detestation of the murder

emphasized the rejection of Conkling and Platt.

The action of the President and of the New York legislature

contributed to check the interference of Senators in appointments

to office, which had grown up, under what is called "the courtesy

of the Senate," to be a serious abuse. The nomination of Stanley

Matthews, eminently fitted for the office of justice of the Supreme

Court, was confirmed by a majority of only one vote, the objections

to him being chiefly as did not relate to his fitness or qualifications

for that great office, but grew out of his intimate relations with

Hayes.

CHAPTER XLIII.

ASSASSINATION OF GARFIELD AND EVENTS FOLLOWING.

I Return to Mansfield for a Brief Period of Rest--Selected as

Presiding Officer of the Ohio State Convention--My Address to the

Delegates Indorsing Garfield and Governor Foster--Kenyon College

Confers on Me the Degree of Doctor of Laws--News of the Assassination

of the President--How He Differed from Blaine--Visit of General

Sherman--Reception by Old Soldiers--My Trip to Yellowstone Park--

Speechmaking at Salt Lake City--Visit to Virginia City--Placer

Mining in Montana--The Western Hunter Who Was Lost in a "St. Louis

Cañon"--Sunday in Yellowstone Park--Geysers in the Upper Basin--

Rolling Stones Down the Valley--Return Home--Opening of the Ohio

Campaign--Death of Garfield.

After the adjournment of the Senate I went to Mansfield, and enjoyed

the comfort and quiet of home life after the turbulence and anxiety

of four years of severe labor as Secretary of the Treasury. The

state convention was to be held at Cleveland on the 18th of June.

There were signs of disaffection growing out of the events of the

past year, which threatened to disturb the harmony of the Republican

party. I determined to do all I could to allay this, and for that

purpose to attend the convention as a delegate and promote, as far

as I could, the renomination of Governor Foster. When the convention

met I was selected as its president, and in my speech I took care

to express my support of Governor Foster and the administration of

Garfield.

I said that Governor Foster was entitled to renomination, and I

believed would receive it at the hands of the convention, that his

able and earnest canvass two years before had laid the foundation

for a great victory, culminating in the election of Garfield as

President. I called attention to the achievements of the Republican

party during the past twenty-five years in war and in peace. I

warned the convention that there was no room in Ohio, or in this

country, for a "boss," or a leader who commands and dictates, and

said: "The man who aspires to it had better make his will beforehand."

I congratulated the convention upon the auspicious opening of the

administration of President Garfield and said:

"We know office-seeking is undoubtedly the proper pursuit of mankind.

There may be some disappointments, because there are fewer places

to fill than men willing to fill them. But, in the main, the

general principles and policy of this administration are in harmony

with the aspirations of the Republican party. The financial policy

of the last administration has been supplemented by the reduction

of the rate of interest on $500,000,000 of the public securities

from five and six per cent. to three and a half per cent. This

wise measure has been carefully and most skillfully managed by

Secretary Windom, an Ohio boy. . . . They are saving $15,000,000

a year, and now the debt which frightened brave men fifteen years

ago has melted away like snow before a summer sun, no longer

frightening the timid. And now the tax on whisky will pay the

interest on the public debt.

"The people of Ohio are satisfied with the administration, I believe,

as it now stands. I believe I can say, in advance of the resolution

that has been, or that will be, offered, that President Garfield

has the emphatic approval of the Republicans of Ohio in the course

he has pursued thus far. Let him further advance the public credit;

let him punish all who do wrong; let him give us an administration

pure, simple and republican, worthy of a nation like ours, and we

will send him our approval twice over again. But, we have something

to do in this task. We have got to emphasize our approval by

indorsing this administration in the election of the Republican

ticket this fall. This is no child's play. We know of the good

work of the Republican party, that it has a powerful constituency

behind it, we dare not do anything wrong, or they will push us from

our positions, if we do not behave ourselves. Let us, then, do

our part; work as Republicans of Ohio know how to work, and victory

will perch upon our banners."

The proceedings of the convention, from beginning to end, were

conducted without any serious division or excitement. The threatened

outbreak against Foster did not occur. Upon the close of my speech

I announced that the first business in order was the nomination of

a candidate for governor. Foster was nominated by acclamation,

without a dissenting voice. The rest of the ticket was composed

of popular candidates, and an exceptionally good platform was

adopted.

In the latter part of June, I attended alumni day of Kenyon college,

in company with ex-President Hayes and many leading men of Ohio.

Delano Hall, the gift of Columbus Delano, and Hubbard Hall were

dedicated with appropriate services, conducted by Bishop Bedell

and President Bodine. On this occasion the degree of Doctor of

Laws was conferred upon me, and I told the faculty how earnestly

I had wished to graduate in their college, and why I could not do

so. Frank Hurd and Mr. Hayes, both graduates, made interesting

addresses. This college was founded mainly upon liberal contributions

to Bishop Chase, by Lord Kenyon and other Englishmen. Its governing

power was the Episcopal church. It has had many vicissitudes of

prosperity and depression, but has never realized the hopes of its

founders. It is one of the colleges of Ohio, excellent in their

way, but if their limited resources had been combined in one great

university, free from sectarian influence, the result would, in my

opinion, have been much better for the youth of Ohio.

During this period I was busy putting my country house in order.

I was literally "repairing the fences." The absence, during four

years, of Mrs. Sherman and myself made a great change in the

condition of my house, grounds and farm. The work of restoration

was a pleasant one, and I was relieved from appeals for appointments,

from the infinite details of an exacting office, and still more

from the grave responsibility of dealing with vast sums, in which,

however careful I might be, and free from fault, I was subject to

imputations and innuendoes by every writer who disapproved of my

policy.

I was arranging for a trip to Yellowstone Park, was receiving

visitors from abroad daily, and mixing with my neighbors and fellow-

townsmen, congratulating myself upon a period of rest and recreation,

when, on the 2nd of July, I received from General Sherman the

announcement, by telegram, that Garfield had been shot by Guiteau,

and that the wound was dangerous, and perhaps fatal. The full

details of this crime were soon given. I started to go to Washington,

but returned when advised that I could be of no service, but

continued to receive from General Sherman frequent bulletins. The

position of the fatal bullet could not be ascertained, and Garfield

lingered in suffering until the 19th of September, when he died.

The death of Garfield, by the hand of a half crazy crank, created

a profound impression throughout the civilized world. To rise to

such a height as he had attained, and then to become the victim of

such a wretch, was a calamity that excited profound sympathy for

the President, and unusual detestation for the murderer. The

personal qualities of Garfield have been already mentioned. After

his untimely death his enemies became silent. At this distance of

time we can properly fix his place in the calendar of those who

have gone before. In many respects, Garfield was like Blaine, but

in his personal intercourse with men, and in the power of will, he

was not the equal of Blaine, while, in style of oratory, in imagery

and expression, he was superior to him. Both were eminent in their

day and generation. They were my juniors about eight years, yet

they lived long enough to permanently stamp their names upon the

history of the country.

On the 20th of July General Sherman arrived at Mansfield as my

visitor. There was much curiosity to see him, especially by soldiers

who had served under his command. I invited them to call at my

house. On the evening of the 21st a large procession of soldiers

and citizens, headed by the American band, marched to my grounds.

The general and I met them at the portico, when Colonel Fink stepped

forward and made a brief speech, saying:

"General Sherman:--We, the old soldiers of the war for the Union,

of Richland county and its surroundings, together with our citizens,

have come to-day to pay our respects to you.

"We come, with feelings of profound regard, to see and welcome you,

our great strategic war chief, and the hero fo the glorious 'March

to the sea.'

"We greet you as the general and leader of all the armies of our

country; we greet you as the gallant defender of the flag; we greet

you as the brother of our beloved Senator; we greet you as an Ohio

man, but, above all, we have come to greet and honor you for your

worth; the man that you are."

General Sherman replied briefly, and as this is the first speech

I ever heard him make I insert it here. He said:

"Fellow-Soldiers of the late war and Fellow-Citizens:--It gives me

pleasure to meet you here to-night, in this beautiful grove; in

this inclosure, at my own brother's home. I am glad to meet you,

his neighbors and his friends. The situation is a novel one to

me, and I am deeply moved by it. As I look over you I do not

recognize the faces that I used to know, and when riding about your

city to-day, I only found some of the names I then knew--your

Hedges, your Parkers, and your Purdys; for the rest I had to go to

your cemetery, over yonder, and read their names on the tombstones.

But you have them still among you in their children and their

grandchildren.

"I cannot distinguish to-night who are and who are not soldiers,

but let me say to you, soldiers, I am very glad to meet you again,

after so many years, in this time of peace, when yet the recollection

of the hardships of war is a bond of comradeship among us. We

fought, not for ourselves alone, but for those who are to come

after us. The dear old flag we carried through the storms of many

battles, ready to die, if need be, that it might still wave over

the government of our fathers.

"But this is not the time nor place to recount the events of the

past. I could not now do the subject justice if I should try. I

am not accustomed to addressing mixed audiences. My brother here

knows how to do that better than I, and he understands you better.

But I want to say to you: Teach your children to honor the flag,

to respect the laws, and love and understand our institutions, and

our glorious country will be safe with them.

"My friends, I heartily appreciate this splendid tribute of your

friendship and respect. I thank you. Good night."

At the conclusion of General Sherman's speech he was cheered

vociferously, after which calls were made for me. I made a few

remarks and announced that the general would be glad to take them

all by the hand, and as he did so they passed into the dining-room,

where refreshments awaited them. The greetings and hand-shaking

lasted over an hour. In the meantime the "soldier boys" and others

were enjoying the good cheer within.

On the 22nd of July General Sherman, with Colonel Bacon, left for

Clyde, Ohio, and I at the same time started for Chicago, there to

be joined by Justice Strong, late of the Supreme Court, who had

recently retired at the age of 70, the artist Bierstadt, and Alfred

M. Hoyt, of New York, for a trip to Yellowstone Park. We had

arranged for this trip months before. Our plan was a simple one,

to go at our convenience by the Union Pacific, the only railroad

route then open, to Salt Lake City, and thence to Virginia City,

thence through the Yellowstone Park, and by another route to return

to Virginia City, and thence home. We were to take the usual route

and means of conveyance until we arrived at Virginia City. From

there we were to have an escort, to and through the park, of ten

United States soldiers from Fort Ellis.

The party met at Chicago and proceeded to Ogden and Salt Lake City.

At the latter place we casually met several gentlemen of our

acquaintance, especially General Harrison, Eli Murray, Governor of

the Territory of Utah, and General McCook, who commanded the post

in Salt Lake City. We spent a day or two in visiting the post and

city, and found a great improvement since my former visit. In the

evening we were serenaded by a band from the post, and several

gentlemen were called out for speeches by the gathering crowd. I

had been met during my stay there by many people who claimed to

hail from Ohio, so that I began to think it was quite an Ohio

settlement. In the few remarks I made at the serenade I eulogized

Ohio and spoke of the number of Ohio people I had met in that city.

General McCook was called out, and as he was from Ohio he had

something to say for that state. General Harrison was called upon,

and he said that while he lived in Indiana he was born in Ohio and

was proud of it. General Murray was next called for and he said

that while he was born in Kentucky he lived so close to Ohio that

he could throw a stone into the state. So much had been said about

Ohio that Judge Strong took offense. They called upon him to

address the crowd from the balcony, but he would not. Finally,

upon my urging him to speak, he rushed forward and said: "I want

you to understand distinctly that I am not from Ohio, I was not

born in Ohio, I never lived in Ohio, and don't want to hear anything

more about Ohio!" This was vociferously cheered, and the old

gentleman closed with very proper remarks about love for the Union

instead of for the state.

Since that time I have visited Salt Lake City and have always been

impressed with the great value of that region, not only for its

mineral wealth, but for the possibility of great agricultural

development with proper irrigation.

During our stay we bathed in Salt Lake. The water was so impregnated

with salt that our bodies floated upon the surface and there was

no danger of drowning. The history of Salt Lake City, which owes

its existence and wonderful development and prosperity to Brigham

young, is like an improbable romance. I have already mentioned

Young, having met him on my former visit with Thomas A. Scott. In

the nine years that had elapsed the city had nearly doubled its

population. Pure water was flowing in all the streets and the city

looked fresh and clean. The air, at an elevation of 4,000 feet

above the sea, was exhilarating. From Salt Lake City we returned

to Ogden, and on, or about, the 1st of August took passage on the

Utah Northern railroad. Our route lay along the Beaver River,

passing Eagle Rock, thence through Beaver Cañon into Idaho, thence

through a mountainous range, at about an elevation of 6,800 feet,

into Montana as far as the frontier town of Dillon. There we left

the cars and took wagons to Virginia City, Montana, where we were

to meet our military escort and arrange for horses and mules to

carry us and our camp outfit into the park.

Our drive from Dillon to Virginia City was very picturesque, skirting

the Ruby mountains and crossing the Stinking Water River. Virginia

City was at one time the center and thriving business place of the

large population that was drawn to that valley by the very rich

placer gold mines there, discovered between 1865 and 1870. It is

estimated that $90,000,000 of gold was taken from that stream that

runs through a valley about eighteen miles long. The city had many

substantial buildings, a large brick courthouse, five churches,

many large business stores, dwellings and hotels. At the time we

were there the placer mining had been abandoned, except by some

Chinamen who were washing over the tailings and making good wages

at it; and the population had been reduced from 20,000 people to

1,400. Here we spent Sunday. It was a gala day for the saloons,

ranchmen and cowboys, typical of how Sunday is observed in all

these mining and ranch towns. We met here, as everywhere in Montana,

wandering gold-seekers who explored from mountain to valley in

search of the precious metal, often making exaggerated statements

in regard to the undeveloped wealth not yet discovered, with stories

about gold which were never realized. It was the common belief

that the gold found in the placer mines must have been washed from

the mountains near by, and seekers for gold were looking for the

source of the gold field in such mountains, but it was never

discovered. Mines were discovered in other parts of Montana, but

none about Virginia City.

On Monday we met Lieutenant Swigert with a dozen troopers from Fort

Ellis, who, by orders from the war department, were to escort us

through Yellowstone Park. Here we obtained horses and mules for

our own use and for carrying our packs, camp traps, etc. When all

was ready we started for our camping in the wilderness. Our first

day's march was about twenty miles, when we went into camp. We

proceeded each day about this same rate, following along the valley

of the Madison River until we reached the park. When we were there

the park was truly a wilderness, with no evidences of civilization.

Game was very abundant. Elk, deer, antelope and bear were plentiful,

and we had no difficulty in getting all the fresh meat we wanted.

Among our employees was a man by the name of Beam, a typical hunter.

He had spent most of his life in the mountains. He started out

every morning in advance of us and was always sure to be at the

agreed camping ground when he arrived. I asked him at one time if

he was not afraid of being lost. He said no, he could not be lost

for he could go to the top of any hill or mountain and determine

his course. He said he had never been lost but once, and that was

in St. Louis; when he went out from the hotel he was in a "cañon"

and he could not tell which way to go.

We arrived in the lower geyser basin on Saturday. The next day

(Sunday) was bright and beautiful. We knew that our revered

companion, Justice Strong, was a religious man and we felt that he

would have scruples about traveling on Sunday. Still, we wished

to move on that afternoon to the upper geyser basin, but were at

a loss how to approach him with the Sunday question. It was left

to me to confer with him. Before doing so I arranged to have

everything in order for a proper observance of the Sabbath day.

I found after inquiry that there was no Bible in the large party,

but that the officer in command of the troops had an Episcopal

prayer book. I went with that to Justice Strong and suggested that

we should have religious services, to which he readily assented.

I gave him the prayer book and he carefully marked out a selection

of scripture and prayers, saying that he was not familiar with the

book, but it contained ample material for a proper religious service.

We gathered all the soldiers, wagoners and cowboys, including the

hunter, belonging to our party. Justice Strong was furnished a

box to sit on in front of his tent, and the rest of us stood or

lay in scattered groups on the ground around him. He read from

the prayer book the passages he had selected, making together a

most impressive and interesting service. Many of those who gathered

around him had not shared in religious services for years, and were

duly impressed with them. After this was over and we had taken

dinner, I suggested to him that there were so many horses that the

teamsters complained that the grass was not sufficient for them to

remain there all day, and that I thought it would be well for us

to move to the upper geyser basin a few miles away, to which he at

once assented. I throughly sympathized with his feelings in this

matter, but thought that under the circumstances our action was

excusable and he doubtless saw through the scheme.

During our visit to the geysers in the upper basin, we encamped

near "Old Faithful." From this camp we could reach, by an easy

walk, nearly all the grand geysers of this wonderful basin. I have

sometimes undertaken to describe these geysers, but never could

convey my idea of their grandeur. Bierstadt made a sketch of "Old

Faithful," showing Mr. Hoyt and myself in the foreground, with the

geyser in full action. He subsequently expanded this picture into

a painting, which I now own and greatly prize.

We resumed our march, passing by Sulphur Mountain, the Devil's

Caldron, mud geysers, the "paint pots," and through this marvelous

land, to the shores of Yellowstone Lake. We were amazed at the

beautiful scenery that stretched before us. This large lake is in

the midst of snow-clad mountains; its only supply of water is from

the melting snows and ice that feed the upper Yellowstone River.

Its elevation is 7,741 feet above the sea. The ranges and peaks

of snow-clad mountains surrounding the lake, the silence and majesty

of the scene, were awe-inspiring--the only life apparent being the

flocks of pelicans. We fished successfully in this mountain lake,

but of the fishes caught many were spoiled by worms that had eaten

into and remained in them.

We visited the great falls of the Yellowstone, the immense and

wonderful cañon so often described and illustrated. We remained

encamped near this cañon a whole day, and amused ourselves chiefly

in exploring its wonderful depths and in rolling stones from

projecting points down into the valley. They generally bounded

from point to point until we could hear them dashing into the waters

far below.

Our march down the valley of the Yellowstone was very interesting.

The military escort and Justice Strong did not pass over Mount

Washburn, but went by a nearer and easier route along the valley

to the next camping ground. Bierstadt, Hoyt and I, with a guide,

rode on horseback to the top of Mount Washburn, a long, difficult

and somewhat dangerous feat, but we were amply repaid by the splendid

view before us. We crossed the mountain at an elevation of 12,000

feet, in the region of perpetual snow. From its summit one of the

grandest and most extensive views of mountain scenery lay before

and around us, range after range of snowpeaks stretching away for

one hundred miles. To the south was the valley of Wind River and

Stinking Water, and encircling these, the Shoshone and Wind River

ranges with their lines of perpetual snow, the Bear Tooth Mountain

and Pilot Knob and Index Peak, the great landmarks of the Rockies.

The ascent was fatiguing and almost exhausting. We remained on

the mountain two or three hours for needed rest. When we arrived

in the camp about sundown I was so fatigued that I was utterly

unable to dismount from my horse, and was lifted bodily from it by

the soldiers.

We continued our journey through grassy parks until we reached

Lower Falls. From there we continued until we arrived at Mammoth

Hot Springs, where there was a house, the first sign of civilization

we had seen since we began our journeyings in the park. From here

we took our way to Fort Ellis and Bozeman, where we left our escort

and horses and mules. We returned from here to Virginia City, and

at Dillon took cars for Ogden and thence for home, where I arrived

about the 25th of August.