have marked the places where the deadly blight of treason has blasted the councils of the brave in their hour of might. The trusts and combinations the communism of pelf whose machinations have prevented us from reaching the success we deserve, should not be forgotten nor forgiven.”
The close of the year 1894 was marked by financial depression, by a larger deficit than had been expected, and by a decline in the revenue. Although the Sherman act had been repealed, no progress had been made with the scheme presented by Secretary Carlisle for reducing the paper currency and providing for an adequate reserve. The reserve was threatened twice, and the president was obliged to make use of the power given under the resumption acts, by issuing $50,000,000 worth of five-per-cent ten-year bonds for the purchase of gold. In his message to the last session of the 53d congress he stated that he should employ his borrowing power “whenever and as often as it becomes necessary to maintain a sufficient gold reserve and in abundant time to save the credit of our country and make good the financial declarations of our government.”
In February, 1895, the gold reserve had fallen to $41,000,000, and Mr. Cleveland asked congress for permission to issue three-per-cent bonds payable in gold. This being denied him, he issued four-per-cent thirty-year bonds redeemable in coin, to the amount of $62,000,000. In June, 1895, the supreme court decided by a majority of one that the income tax that had been imposed by the Wilson bill was unconstitutional, and the treasury thus lost a source of revenue that it had been estimated would yield $30,000,000 yearly. In his message of December, 1895, the president recommended a general reform of the banking and currency laws, including the retirement and cancellation of the greenbacks and treasury coin notes by exchange for low-interest U. S. bonds; but congress failed to act on this recommendation. Gold exports continued, and in January preparations were made for a new loan. An invitation was issued asking applications for $50 thirty-year four-per-cent bonds to the amount of $100,000,000 before 6 Feb.. European bankers held back, a free-coinage bill having been meanwhile reported favorably in the senate, but Americans subscribed freely, and the treasury obtained $111,000,000 in this way. This success was contrasted by Mr. Cleveland's opponents with his policy in the loan of 1895, which was made by contract with a syndicate of bankers; but it was pointed out in favor of that policy that it was the only course possible in a sudden emergency, and that such an emergency did not exist in 1896.
On 29 May the president vetoed a river and harbor bill that provided for the immediate expenditure of $17,000,000, and authorized contracts for $62,000,000 more, but it was passed over his veto.
In July, 1894, serious labor troubles arose in Illinois and other states of the west, beginning with a strike of the employees of the Pullman palace car company, and spreading over many of the railroads centring in Chicago. Travel was interrupted, the mails delayed, and interstate commerce obstructed. So wide-spread became the trouble, involving constant acts of violence and lawlessness, and so grave was the crisis, that military force was necessary, especially in Chicago, to preserve the peace, enforce the laws, and protect property. The president, with commendable firmness and promptness, fully met the emergency. Acting under authority vested in him by law, he ordered a large force of U. S. troops to Chicago to remove obstructions to the mails and interstate commerce, and to enforce the laws of the United States and the process of the federal courts; and on 8 and 9 July issued proclamations commanding the dispersion of all unlawful assemblages within the disturbed states. The governor of Illinois objected to the presence of the troops without his sanction or request. In answer to his protest the president telegraphed: “Federal troops were sent to Chicago in strict accordance with the constitution and laws of the United States upon the demand of the post-office department that obstruction of the mails should be removed, and upon the representations of the judicial officers of the United States that process of the federal courts could not be executed through the ordinary means, and upon abundant proof that conspiracies existed against commerce between the states. To meet these conditions, which are clearly within the province of federal authority, the presence of federal troops in the city of Chicago was deemed not only proper, but necessary, and there has been no intention of thereby interfering with the plain duty of the local authorities to preserve the peace of the city.”
To a farther protest and argument of the governor the president replied: “While I am still persuaded that I have transcended neither my authority nor duty in the emergency that confronts us, it seems to me that in this hour of danger and public distress discussion may well give way to active effort on the part of the authorities to restore obedience to the law and to protect life and property.”
The decisive action of the president restored order, ended the strike, and received the commendation of both houses of congress and of the people generally. The president then appointed a commission to investigate the causes of the strike. It is interesting to note in this connection that by special message to congress of 22 April, 1886, President Cleveland had strongly recommended legislation which should provide for the settlement by arbitration of controversies of this character.
Early in May, 1896, Mr. Cleveland issued an order by which 30,000 additional posts in the civil service were placed on the list of those requiring a certificate from the civil-service commissioners, thus raising the number on this list to 86,000. When he first became president there were only 13,000 appointments out of 130,000 for which any test of the kind was required.
In Mr. Cleveland's last annual message, after declaring that the agreement between Great Britain and the United States regarding the Venezuela boundary question had practically removed that question from the field of controversy, he added that “negotiations for a treaty of general arbitration for all differences between Great Britain and the United States are far advanced and promise to reach a successful consummation at an early date.” On 11 Jan., 1897, a treaty between Great Britain and the United States for the establishment by the two countries of such an international tribunal of general arbitration was signed by Secretary Olney and Sir Julian Pauncefote at Washington, and sent by President Cleveland to the senate. This treaty was hailed with great satisfaction by all friends of arbitration. The preamble stated that the articles of the treaty were agreed to and concluded because the two countries concerned are “desirous of consolidating the relations of amity which so happily exist, between them and of consecrating by treaty the principle of international arbitration.” No reservation was made regarding the subject-matter of disputes to be arbitrated. Matters involving pecuniary claims amounting to $500,000 or less were to be settled by three arbitrators, consisting
