ILF SB 3DT b3fl UNIVERSITY OF CALIFORNIA GIFT OF C/^ss THE LIFE AND PUBLIC SEEVICES 0, I HON. SAMUEL J. TILDEN, DEMOCRATIC NOMINEE FOR PRESIDENT OF THIS UNITED STATES. TO WHICH IS ADDED A SKETCH OF THE LIFE OF HON. THOMAS A. HENDRICRS, DEMOCRATIC NOMINEE FOR VICE-PRESIDENT. BY THEODORE P. COOK, OF THE TJTICA OBSERVE!:. NEW YOEK : D. APPLE TON AND COMPANY, 549 & 551 BROADWAY. 1876. 1 ENTERED, according to Act of Congress, in the year 1876, by D. APPLETON & COMPANY, In the Office of the Librarian of Congress, at Washington. PKEFACE. THE accompanying biography of Governor Tilden has been announced as written under his authority. It is proper that the reader should understand just how far that " authority " extends. The author has enjoyed the per sonal friendship of Mr. Tilden for several years. He has had an opportunity of studying his character under favor able circumstances. When it became evident that the Governor would be the Democratic candidate for the presi dency, the author frankly announced to him his desire to write his life. He not only consented to the proposal, but kindly turned over the numerous pamphlets, letters, speeches, messages, etc., emanating from him or relating to him, which he held in his possession, and some of which papers were not elsewhere obtainable. He also submitted to a series of inquisitive (not to say inquisitorial) inter views, in the course of which he promptly answered all questions which a healthy desire for information could suggest. He gave the author the freest access to the rec ords and memorials of his life, and assisted him to prosecute his inquiries on some questions where controversies had arisen. In the sense which this explanation covers, and in no other sense, the work is issued under his authority. The author is alone responsible for what it contains. iv PREFACE. Much more time lias been devoted to verifying facts and to sifting rumors in relation to Governor Tilden than to polishing the style of the following pages. An honest effort has been made to tell in a straightforward manner the events and incidents which mark the eventful career of Samuel J. Tilden. The work has been rapidly done, and the author knows that from a literary standpoint it is quite imperfect. The design was, to make it comprehen sive in its scope and accurate in its details. If that design has been fulfilled, the reader will probably forgive the numerous faults which are inseparable from hasty writing. The sketch of Governor Hendricks has been prepared from matter furnished by a gentleman who was author ized by him to perform the work. T. P. C. DAILY OBSEKVEB OFFICE, UTICA, July 15, 1876. CONTENTS. PAOE PREFACE CHAP. I. Ancestry, Birth, and Boyhood II. College Career Early Successes as a Political Writer and Speaker 1834- 38 . 9 III. Mr. Tilden and the Working-men 1838 . 16 IV. The Campaign of 1840 Mr. Tilden s Speech on Finance . 24 V. His Law-Office His Acquaintance Silas Wright and Others He establishes a Paper, helps to elect a President, and declines the Naval Office 184 1- 4 5 . 41 VI. In the Assembly and Constitutional Convention 1816 . 47 VII. Sumptuary Legislation VIII. Mr. Tilden as a Lawyer The Flagg Case . . 57 IX. The Burdell Case . 62 X. The Pennsylvania Coal Company s Case XL The Terre Haute, Alton & St. Louis Railroad Case 73 XII. His Position during the War . XIII. The " Tammany Ring " Its Members XIV. Mr. Tilden s History of the Overthrow of the Tammany Ring . 93 XV. Elected Governor of New York 1874 . .. 130 XVI. First Annual Message . .139 XVII. The Louisiana Outrage . I* 78 XVIII. The " Canal Ring" and its Overthrow . XIX. The Government Municipalities . . . 225 XX. Second Annual Message 1876 . . .241 vi CONTENTS. CHAP. PAGK XXI. The Veto of the Pauper-Labor Bill 1876 ... 291 XXII. The Preliminary Canvass for the Presidency . . . 295 XXIII. The St. Louis Convention ..... 303 XXIV. Speech of Acceptance ...... 335 XXV. Governor Tilden s Letter of Acceptance .- . . 339 XXVI. A Study of Mr. Tilden s Character . 354 A SKETCH OF THE LIFE OF HON. THOMAS A. HENDRICKS. CHAP. PAGE I. Life and Character ...... 363 II. Speech at Indianapolis . . . . . .376 III. Speech at Zanesville . . . . . 397 IV. Speech at Philadelphia .-.....- 414 V. His Views on Temperance Legislation . . . 434 THE LIFE OF SAMUEL J, TILDEN. CHAPTER I. ANCESTRY, BIKTH, AND BOYHOOD. SAMUEL J. TILDEN was born in New Lebanon, Columbia County, New York, on the 9th day of February, 1814. He comes of a sturdy and an honest race. His ancestors were among the earliest recruits to the little band of Puritan pil grims who settled Massachusetts. Before coming to these shores, in the freedom-loving county of Kent, in England, the Tildens had gained distinction. Nathaniel Tilden was mayor of the city of Tenterden, England, in 1623. His uncle John had held the office in 1585 and 1600. Nathaniel was succeeded by his nephew John. Kent was a county of farmers. It was divided into small estates, which were in herited equally among the children of the family, Kent re fusing to accept the law of primogeniture. It was a king dom by itself under the Saxon heptarchy, and it maintained its independence in a remarkable degree. Nathaniel Tilden, with nine other men of Kent, sailed for America in the ship Ann, in 1634, and became one of the founders of the town of Scituate, Massachusetts. His brother, Joseph Tilden, was one of the consignors of the Mayflower. Nathaniel s wife was Hannah Bourne, one of whose sisters married a brother of Governor Winslow, and another the son of Governor Bradford. After Nathaniel Til den s death his 1 2 THE LIFE OF SAMUEL J. TILDEN. widow wedded Timothy Hatherby, another consignor of the Mayflower, who was a leader of opinion in Scituate until he was driven thence for refusing to persecute the Quakers. The second generation of Tildens in America settled in Lebanon, Connecticut. Among the ancestors of the Govern or in that town was Colonel Daniel Tilden, a stanch friend of Jefferson, and one of the founders of the Democratic party. When the news came of the battle of Lexington, in April, 1775, Daniel Tilden raised a company of men, and marched to the relief of the imperiled patriots of Massa chusetts. He returned from that expedition, and was fore most in the movement which led, that same year, to the en rollment of the Connecticut militia for the war. This was months before the Declaration of Independence. Under this organization Israel Putnam received his commission as briga dier-general, while Daniel Tilden enlisted under him and entered the Revolutionary service as a captain. At the bat tle of Trenton he commanded the company in which James Monroe served as a lieutenant. Many years later, when President Monroe visited Connecticut, he sought out his old commander and revived the reminiscences of their early cam paigns. Lebanon was the headquarters of the patriots in Connect icut during the Revolution. It is a quaint old town, with a main street nearly five hundred feet wide, shaded by trees, some of which are now two centuries old. It was the home of Connecticut s Revolutionary Governor, Jonathan Trum- bull, the original " Brother Jonathan " of our national legends. It was to him that General Washington went on many occasions for comfort and counsel. Governor Trumbull called around him his own chosen band of advisers, shrewd men, loving liberty with all their hearts, and meaning to achieve the blessing they sought by taking advantage of all the blunders and follies of their enemies. In 1790 Governor Tilden s grandfather, John Tilden, re moved to the State of New York, and made his home in ANCESTRY, BIRTH, AND BOYHOOD. 3 Columbia County, in a town christened New Lebanon in honor of that Connecticut village from which the Tildens and other settlers came. Here in New Lebanon the Governor s father came to man s estate, and conducted a farm while he also carried on business as a merchant. The Governor s ancestors on his mother s side trace their family line direct to William Jones, who was Lieutenant- Governor of the colony of New Haven. In England this family was connected by marriage with Oliver Cromwell, and was associated by sympathy with him and with John Hamp- den. Wide differences of opinion exist with regard to the Protector and his followers, but nobody disputes their cour age. The fearless nature of these men was reproduced in some of their families certainly in this remote descendant of Governor William Jones with whom we deal. There has been a natural tendency in the United States, which gradually lessens as the years advance, to " scorn the claims of high descent." The conceded equality of all men before the law generated the belief that there was nothing in blood that would " tell." But there is. Generations of self-reliant, firm-hearted, freedom-loving people bring forth fruit after their kind. Figs are not of thistles, nor grapes of thorns. The traditions of Tilden s home were the traditions of liberty, of enterprise, of energy overcoming obstacles. They were not thrown away upon him. He may be said to have inherited clear perceptive faculties and perfect fearless ness. He was born in the year before the close of the last war with Great Britain. That war was followed by a protracted season of high prices and general suffering which stands without parallel in the history of the country. Almost the first words that the child Samuel comprehended were those which conveyed the meaning of hard times. His parents were well-to-do in comparison with most of their neighbors, but they did not escape the wide-spread calamities of the period. Young Samuel was not counted a precocious boy. 4 THE LIFE OF SAMUEL J. TILDEN. He was small for his years, and his health was uncertain. Lacking for a time the companionship of children, he early learned to listen to his elders, and would sit with wondering eyes while they enlarged on the evils of the times. It is pos sible that these first impressions produced a lasting influence on the undeveloped mind of the boy, and shaped the destiny of his life. The leading citizen of Columbia County during Samuel J. Tilden s boyhood, and for many subsequent years, was Martin Van Buren, eighth President of the United States. He was a man who sought the advice of his neighbors, and knew how to utilize a sound opinion from whatever quarter it came. Oftentimes he rode over from his home in Kinder- hook to New Lebanon, to take counsel of the Tildens. His reflective Dutch nature gained something by coming into contact with the minds of these thrifty and self-opinionated Yankees. He and they were reared in different schools, and they clung to their traditions with inflexible tenacity ; but none the less they admired Mr. Van Buren s superior talents, his indescribable shrewdness, and his unquestioned ability to solidify the nebulous forces of politics into a positive power. The year 1832 is memorable in the political annals of the State of New York. What was known as the Albany Re gency had been in existence some thirteen years. The Re gency may be described as an honest ring, which sought the promotion of worthy ends through the power of party disci pline. It was the first effort at thorough organization which the State or the country had seen. Before the birth of the Regency the politicians trusted blindly to the drift of the currents. The Regency guided the currents, and, by fore casting public opinion, brought about results with almost un erring accuracy. Mr. Van Buren, from 1819 to the time of his elevation to the presidency in 1837, was at the head of the Regency. William L. Marcy, Azariah C. Flagg, and Edwin Croswell, the editor of the Albany Argus, were among his early and most trusted lieutenants. During the ANCESTRY, BIRTH, AND BOYHOOD. 5 thirteen years from 1819 to 1832 Mr. Van Buren reaped an abundant harvest of political honors. He was elected (1821) to the United .States Senate ; reflected in 1827 ; resigned that office in 1828 to become Governor of the State of New York ; resigned the governorship within three months from the time he entered on his duties to become Secretary of State in Jackson s cabinet (March, 1829) ; and in 1831 re signed that office and took an appointment as minister to England. The Senate refused to confirm him, and he re turned home to accept a nomination for Vice-President on the ticket with Jackson. This brings us down to 1832, when Samuel J. Tilden first made himself felt in politics. He was eighteen years old. One who knew him then describes him as a tall lad his slender form giving him the appearance of greater height than he possessed with a pale face, firm lips, and full, blue eyes. Even at that early age the discussion of politics had engaged his attention for years. In the store, by the fireside, on the farm, everywhere, the exciting events of Jackson s Administration formed the staple topic of conversation among all classes of people old and young. He had no difficulty, therefore, in comprehending the political situation. The State of New York, always de batable ground, was more evenly divided than usual. The opponents of the Administration, under the name of Na tional Republicans, had formed a coalition with the Anti- masonic organization. This last-named party, which stands as an anomaly in political history, was established for the purpose of destroying the masonic order. It grew originally out of the excitement attendant on the alleged abduction and murder, in September, 1826, of William Morgan, of Ba- tavia, New York, who was said to have exposed the secrets of the masons, and to have met his death on that account. Within a year the movement gathered such strength that, at the election of 1827, it carried the counties of Genesee, Mon roe, Livingston, Orleans, and Niagara, -in face of both the existing parties. At the election of 1828 the Antimasons 6 THE LIFE OF SAMUEL J. TILDEN. cast 33,345 votes for Solomon Southwick for Governor ; if they could have united that vote with the vote of the Na tional Republicans, it would have defeated Mr. Van Buren. In 1830 such a coalition was arranged ; Francis Granger be came the Antimasonic, National Republican candidate for Governor, and was opposed by Enos T. Throop, the Demo cratic nominee. Governor Throop was elected by a majority of 8,400 in a total poll of 230,000. When the lines were drawn for the exciting canvass of 1832, the Antimasons held a national convention in Philadelphia, and nominated William Wirt for President. The National Republicans, who were really the Whigs of that day, and the devoted followers of Henry Clay, made him their candidate. The Democrats, as I have shown, renominated General Jackson, and unanimously selected Martin Van Buren for Vice-President. It was clear that the election in New York must turn on the ability or the iijability of the Antimasons and National Republicans to improve on their coalition of two years before, and unite in one solid column all who opposed masonry and all who op posed Jackson. With this object in view, the Antimasonic Convention assembled on the 21st *of June, 1832, and re- nominated Francis Granger for Governor, and put forward the names of a full electoral ticket. On the 25th of July this entire electoral ticket, together with the State ticket of the Antimasons, was adopted by the National Republicans. If the presidential electors had an understanding as to whether in the event of their election their votes were to be given to Clay or to Wirt, they kept it bravely to themselves. This combination threatened to be exceedingly strong to draw in not only the elements which it professed to control, but also such Democrats as were dissatisfied with the Albany Regency, and such also as had been friends of the United States Bank. To break or weaken the coalition was a task which might well engage the attention of the foremost minds of the party ; and it was the boy Sam Tilden who did it ! Young Tilden had listened attentively to the arguments ANCESTRY, BIRTH, AND BOYHOOD. 7 pro and con. He was particularly struck with the clear and forcible statement of the case put forth by an uncle who was staying at his father s house at the time. Big with the sub ject, he went to his own room and wrote out an elaborate " Address to the People " on the subject of the coalition. He enlarged both on the insincerity of the movement and on the folly of it. He showed how the politicians in the name of Antimasonry had not scrupled to combine with the masons in good standing who were opposed to Jackson. He reviewed the action of the two conventions which had joined in pre senting the coalition ticket, and dwelt on the dead silence they had both preserved in regard to the course the electors should pursue in case they were successful. He pointed out the hollowness of the movement so far as the presidential candidates were concerned. If it benefited Mr. Clay, it must benefit him at the expense of Mr. Wirt. Were the Anti- masons ready to do that ? If it assisted Mr. Wirt, it must hurt Mr. Clay. Were the National Republicans who pro fessed such boundless love for the Kentucky statesmen will ing to become parties to such a plot ? At every point the address was vigorous, logical, and mar- velously convincing. I doubt if such clear political ideas were ever before conveyed in language so appropriate by a youth of eighteen. Having finished the address, which was not a brief affair by any means, Samuel submitted it to the criticism of his father. The elder Tilden listened to the read ing of it with marked attention. He did not dare to tell his son how pleased he was with the production. He feared to trust his unaided judgment as to the merit of the work, lest it should betray him into an extravagant estimate of his boy s talent. Mr. Van Buren was staying at Lebanon Springs. He was a critic whose judgment was unerring. To him, therefore, the father and son went and submitted the address. The shrewd statesman saw at a glance that it was precisely what was wanted. He did not stop to inquire the age of the author. He accepted him off-hand as one worthy to think 8 THE LIFE OF SAMUEL J. TILDEN. for the party. At Mr. Van Buren s suggestion the address was signed by a dozen leading Democrats in the State, and put forth officially through the columns of the Albany Argus^ where it occupied half a page. That it produced an effect may be judged from the fact that the Albany Evening Jour nal charged the authorship of it upon Martin Van Buren, and accepted it as the supreme effort of the Democrats to break the coalition of their opponents. Thereupon the Argus, announced, " on the authority of Mr. Van Buren," that he did not write the address. It was successful in the sense that all Mr. Tilden s later papers are successful it set people to thinking. The coalition was really broken even before the election occurred. The Antimasons became distrustful of their allies, and the National Republicans began to think they had made a mistake. The Democrats carried the State by a majority approximating 10,000, and no more was heard of Antimasonry in politics. It was the first victory in which Samuel J. Tilden bore a part. The next year (1833) he passed the preliminary examina tion for admission to Yale College. CHAPTER II. COLLEGE CAREER EARLY SUCCESSES AS A POLITICAL WRITER AND SPEAKER 1834- 38. MR. TILDEN S career at Yale College presents no other point of interest than that he was a member of the class of 1837, to which William M. Evarts, Chief- Justice Waite, Ed wards Pierrepont, and other famous men belonged. He did not remain there any considerable time. He is remembered as a studious young man ; good- natured, helpful to his associates, and shy. He won the respect of the faculty ; and, in after years, the college con ferred upon him the honorary degree of Doctor of Laws. He did not graduate at Yale. Toward the end of his first year his health failed him. His ambition exceeded his strength, and he applied himself so closely to his books, and gave himself such limited time for physical exercise, that he broke down under the strain. The lesson which his severe sickness taught him has been of use to him during all his sub sequent life. Amid the engrossing cares of his professional and political career he has found time for a long walk or ride every day, and has thus preserved his health and husbanded his strength in a remarkable degree. He went home from college doubtful if he should again be able to enter upon a student s life. But the air of his country-home, and the ab solute relinquishment of his books for a time, restored him. But he did not again return to New Haven. It was decided that he should complete his academic course at the University of New York that he might be near to his father s faithful friend and adviser, the late Judge John W. Edmonds, in 10 THE LIFE OF SAMUEL J. TILDEN. whose office he had already decided to read law. At the uni versity he gave careful attention to his various studies, but his mind was largely occupied with the consideration of po litical topics. In the summer of 1837, just before he gradu ated, he won a second conspicuous success as writer on pub lic affairs. To understand the scope of his work it is neces sary to review briefly the political situation at that time : About the 10th of May, 1837, two months after Mr. Van Buren s inauguration, the banks in the city f New York sus pended specie payments, and almost simultaneously all the banks in the country followed their example. The causes which led to this general suspension were numerous and complex. After the removal of the Government deposits from the United States Bank, the money had been placed in the State banks a large portion of it in the city of New York. This money had been freely used by the banks for discount purposes, and was treated as a part of their capital. In 1836 the speculation in public lands had reached its height. Partly to check it, and partly to protect the Govern ment from loss, General Jackson issued an order that the land-offices should receive nothing but gold and silver, or certificates of deposit in specie in the United States Treasury in payment of land. 1 The speculation did not cease, but the heavy drafts on the banks tended to exhaust their supply of gold. The Government was entirely free from debt that year, and had accumulated a surplus of forty million dollars. Congress, to the surprise and disgust of the banks that were holding and using this sum, ordered that it should be dis tributed pro rata among the States. To these principal causes many minor causes contributed their share toward producing the " panic " of 1837. It came so suddenly and swept so swiftly through the land that nobody was prepared for it. It complicated and threatened to paralyze the affairs of the Federal Government. In 1836 Congress passed a law requiring the officers of the Treasury not to deposit the 1 Hammond s " Political History of New York," vol. ii., p. 463. EARLY SUCCESSES AS A POLITICAL WRITER. H national funds in any bank which did not on demand redeem its notes in specie. By the act of 1816 United States officers were forbidden to pay out any notes not redeemable in coin. At the time of the suspension every dollar belonging to the Government was in the possession of the banks, and the banks refused to pay out any specie even to the Government. Under these circumstances Mr. Van Buren, on the 15th of May, issued a proclamation calling Congress together in extra session on the 4th of September. When the Congress had assembled the President addressed the two Houses in a special message, clearly setting forth the financial condition of the Government. He showed the necessity of some ac tion, and then proceeded to discuss the various possible plans of deliverance. He had pledged himself to oppose the char tering of a national bank, and on that issue he had been elected, and must redeem his pledge. He showed that the experiment of depositing the Government funds in State banks had been tried three times, and had signally failed in every instance. What, then, was to be done ? In obedi ence to the behest of the Constitution, he recommended that the Treasury of the people should be kept by the officers of the people, and that there should be an entire and total separation of the business and property of the Government from the business and concerns of the banks. 1 The remedy seems simple and sensible enough after this lapse of years, but at that time it provoked fierce opposition from 1. The banks ; 2. The people who wanted favors of the banks (and they were numerous) ; and, 3. The political opponents of the President, who charged him with a desire to set up a money-holding crowd of irresponsible office-hold ers. Congress straightway divided on the question, and not party-wise. Mr. N. P. Tallmadge, who was then a Demo cratic Senator in Congress from New York, opposed Mr. Van Buren s plan for an Independent Treasury, and (with Mr. Rives, of Virginia) declared himself a " Conservative." The 1 Hammond, vol. ii., p. 475. 12 THE LIFE OF SAMUEL J. TILDEN. bill passed the Senate, however, but in the House a sufficient number of Conservatives joined with the Whigs to de feat it. So Congress adjourned without doing anything except to authorize the issue of a limited amount of Treas ury notes. The Independent Treasury question threatened to split the Democratic party in the State of New York. On this question, at least, the general inclination seemed to be to oppose Mr. Van Buren. In September, while Congress was still in session, a series of papers signed " Marshall " ap peared in the Albany Argus, contesting the wisdom of the President s recommendations and advocating resistance to their adoption on the part of the Democratic party. Mr. Tilden read these articles (which are supposed to have ema nated from one of the leading lawyers and statesmen of that day), and set himself the task of answering them. He prepared for the Argus a number of papers, to which he attached the signature " Crino." They produced an immedi ate effect. They were written in an admirably terse and correct style, and they evinced such comprehensive knowl edge of governmental affairs, political economy, law, and finance, that they were ascribed by common consent to Esek Cowen, then one of the justices of the New York Supreme Court, a man of large learning and marked ability. Nobody suspected that they came from a young fellow who had not yet completed his college education. They were not only well written, but the views they contained were sound, and have withstood the test of time. The financial revulsion produced a political revolution in New York. In the November election (1837), the Whigs carried 101 of the 128 Assembly districts, and three-quarters of the Senate districts. The previous year the Democrats had been victorious everywhere through the State, and they believed their strength was invincible. They were utterly bewildered, therefore, at this astonishing and unprecedented triumph of their opponents. EARLY SUCCESSES AS A POLITICAL WRITER. 13 In 1838 Mr. Tilden, who was growing more and more in terested in politics, played a conspicuous part in the campaign as a participant in a well-remembered debate. It happened in this way : The Democrats renominated Governor Marcy, trusting to his deserved popularity to regain the ground lost the previous year. The Whigs, feeling that they were on the road to victory, threw aside their old leaders, who had been beaten full often, and named for Governor the most brill iant young man in their ranks, William H. Sevvard, who at that time was only thirty-eight years old. The so-called Con servatives, who had failed to impress on the Democracy their opposition to an Independent Treasury, called an informal convention at Syracuse, on the 3d of October, and resolved to support Seward. Senator Tallmadge, not only by reason of his high official position, but also because of his power as a public speaker, was the acknowledged leader of this bolt. He was enthusiastically received by the Whigs, who expected through him to convert a large number of Democrats. During the month of October he was advertised to address the citi zens of Columbia County. "The meeting was very fully at tended, and was composed in about equal parts of Democrats and Whigs. The Democrats had come, not to be " con verted," but to hear what excuse their Senator had to offer for deserting them. The Whigs, of course, controlled the meeting. The burden of Mr. Tallmadge s speech, so far as it related to himself, was that he had not changed his opinions ; that it was the Democrats who had gone away from him, and not he who had gone from them. He then entered into an elaborate discussion of the Independent Treasury bill and other current issues. He closed by reiterating his assertion that he had not changed. The Whigs were pleased, and the Democrats were corre spondingly dejected. They wanted to hear their own side of "the question advocated, as they and not as Senator Tallmadge understood it. But all their leading citizens were absent. They looked about them, and found in the audience Samuel 14 THE LIFE OF SAMUEL J. TILDEN. J. Tilden. They had heard him speak once or twice. He was a young man and looked boyish. But he had gained a reputation among his neighbors for wisdom beyond his years. The sturdy old farmers of Columbia County felt even then that in him they had a safe leader. So it happened that by a common impulse loud calls for " Tilden " went up from all parts of the assemblage. The Whigs, amused at the idea of pitting a stripling against an old and practised debater, ech oed the cry of " Tilden ! " So Mr. Tilden came forward and mounted the platform. Mr. Tallmadge looked with undis guised contempt on the young man who had the audacity to attempt an off-hand answer to the prepared speech of a "United States Senator. But the Senator s contempt was changed to wonder, if not to admiration, as the young man proceeded. Mr. Tilden opened modestly but effectively. He showed that easy and graceful command of language which distinguishes him to-day. He took up the first point of the Senator s speech and argued that somebody must have changed. Was it the Democrats ? They presented the same candidates for whom the people had voted two years before ; they put forth the same principles, with the same exponents of those princi ples, and they met the same opponents that they had met in many previous contests. Surely it was not they who had changed. But was it the Whigs who had changed ? " Have you changed, venerable sir ? " he asked, turning suddenly upon the chairman of the meeting. " You, who for these many years have stood steadfast in your devotion to the doctrines of Henry Clay, and who have opposed the Democratic party in victory and defeat ? Or have you changed ? " he asked, turning to another old Whig, and calling him by name. The effect was electrical. The Democrats cheered lustily, and the Whigs appeared troubled. Having thus won his first point, Mr. Tilden began to develop his power of argument. His ar ticles of the previous year on the Independent Treasury bill had made him quite as familiar with that question as Senator Tallmadge could hope to be, and on other questions he showed EARLY SUCCESSES AS A POLITICAL WRITER. 15 almost equal skill in debate. He finished with a fine appeal to the Democrats to stand by their candidates and their prin ciples, and as he sat down three hearty cheers were given, in which many of the Whigs joined. It did not occur to any body that he had been overmatched in the debate. CHAPTER HI. ME. TILDEN AND THE WOKKING-MEN. 1838. BEFORE participating in the debate with Senator Tall- madge, and while at the university in New York, Mr. Tilden, during the same year (1838), had been called upon to do some rather important work in behalf of the Democratic party. The charter election in the city in the spring was generally accepted throughout the State as a test of the rela tive strength of the two great parties ; and, in the critical condition of affairs which followed the agitation of the Inde pendent Treasury policy, it was considered desirable that the voters of the metropolis, and particularly the laboring-classes, should be well informed of the national issues involved in the election. Two meetings of " Democratic Republican Mechan ics and Working-men " were accordingly called in Tammany Hall, one on the 6th of February, and the other on the 26th of February, 1838, to consider the financial condition of the country, and to take action thereon. At the first of these meetings a long series of resolutions was adopted ; at the second an address was issued. Both papers were the ex clusive work of Mr. Tilden, and, as might have been expected, were enthusiastically received. Meetings for political pur poses are never over-critical, and the supposed labor of their accredited committees is generally cheered ; b-ut that these resolutions and this address should bear the test of criticism, after a lapse of nearly forty years, shows that they were not made of the ordinary campaign material. From among the resolutions the following are selected, in the belief that they will repay perusal now : MR. TILDEN AND THE WORKING-MEN. 17 8. JResolved, That we require in banking, no more than in govern ment, a monarch and a privileged nobility to regulate our affairs ; that an application to finance of the principle of EQUAL LIBERTY, so long successfully applied by the American people to politics, is imperatively required a liberty, not of unlimited license, which pos sessed by one individual would destroy the liberty of every other, but of a character which, under general equal laws, extends the largest measure of freedom and enforces the most perfect security to the rights of all ; that, if abuses in banking, more than in any. other business, affect those who do not participate in them, the remedy is not in a wider license to a limited number of individuals, but in a more effectual restraint upon all : not in exempting banking from the competition and personal responsibility which alone prevent intolerable abuses in other kinds of business, but in giving greater practical effi ciency to these natural restraints, and in exacting additional securities. 4. Itesolvcd, That a general banking law, constructed on these ob vious principles, ought to be enacted ; it will close up the most fruit ful source of legislative intrigue and corruption ; it will prevent the frauds and favoritism practised in the distribution of stock ; it will remove a monopoly, which, to the amount of the extra profit it con fers, levies an indirect tax upon the unprivileged mass, for the bene fit of a few, uncompensated by any public advantage ; it will put an end to arbitrary and unnatural distributions of banking capital; and it will alleviate these fluctuations in the currency which subvert contracts, cause a general insecurity of property, render uncertain the wages of labor, and convert the pursuits of regular industry into a pernicious species of gambling. 5. Resolved, That the measure now before Congress, for effecting a separation of the Government from the banks, receives our entire and cordial approval ; it will enable the Government to command with certainty its revenues amid the varying exigencies of peace and war ; it will prevent a combination of capitalists from " shutting up the Treasury," in order to advance their mercenary schemes through the general embarrassment and confusion ; it will diminish Executive patronage and legislative corruption, by disconnecting the Govern ment from powerful moneyed institutions, having the strongest in ducements to solicit Executive favor, and to introduce into legislation " influences the most subtle, founded on interests the most selfish ; " and it will cause the ordinary financial action of the Government to exert upon the currency and business of the country a far greater 18 THE LIFE OF SAMUEL J. TILDEN. sanative power than any complicated system of regulations which has ever been devised. The address was more elaborate and ambitious than were the resolutions; it sets forth the conflict of antagonistic prin ciples with uncommon vigor and clearness. It says : Such are the deductions of reason ; let us test them by experience. For fifty vears our mint establishment has been conducted on this system; and, although it has generally involved the custody of as large an amount as need be deposited in any one sub-treasury, not a single dollar has ever been lost. Fellow-citizens, we appeal to your common-sense. Tell us, are their own officers less worthy of the confidence of the people than the agents of banks ? Cannot the Gov ernment, regulating the public funds with sole reference to security, make them as safe as banks, wielding them for the purposes of gain? And what is the character of the argument by which these common- sense views of the subject are opposed ? Exaggerated accounts of official peculations are paraded before the public view, and for what? As arguments in favor of the system under which they occurred, and against a system under which they did not occur ! In a time of peace, and with a large surplus revenue, the financial operations of the Government are suddenly suspended ; an extraordinary convoca tion of Congress is rendered necessary ; the Government, unable to command a dollar of its own resources, is compelled to borrow money to meet its current expenses. Under such circumstances it is that the delinquent depositaries of your revenue tell you that your future collections will not be safe, locked in your own vaults, and guarded by your own officers, but must be intrusted to them to be loaned out to traders and speculators ! We will not argue so plain a case. An extraordinary concurrence of events has called the people to decide the question of a separation of the financial affairs of the Government from those of private individuals and corporations. Such a separation, considered merely as a measure of public policy, has our cordial and earnest approval. We entertain the firmest con viction that it will increase the safety of the public moneys. Govern ment can provide vaults as strong, and can find officers as trust worthy, as those of banks ; it can exact securities as ample, and it can enforce an accountability to itself more direct, immediate, and effec tive. In a change of system the loss of the corporate responsibility MR. TILDEN AND THE WORKING-MEN. 19 of banking companies is more than compensated by an exemption from the hazards of their business operations. A system which pro hibits the use of the public moneys is less exposed to defalcation than one which, allowing their use, can be secure only in their suc cessful employment ; a system which relies on fidelity to public trust is safer than one which relies on mere pecuniary responsibility ; men are less ready to commit a felony than incur a debt. When the address proceeds to discuss the general ques tions growing out of the Treasury issue, Mr. Tilden- shows himself a master of many weapons. He says : The histpry of every nation which has enjoyed any portion of freedom is a record of the incessant struggles of the few to establish dominion over the many. In the earlier ages and less enlightened nations, the spirit of aristocracy maintained its ascendency by brute force or through superstition. As mankind advanced in intelligence and political information, it assumed a form more adapted to the character of the age. Banding together the rich by the strong liga ment of mutual interest ; arraying them in an organized class which acts in phalanx and operates through all the ramifications in society ; concentrating property by monopolies and perpetuities, and binding to it political power, it has established an aristocracy more potent, more permanent, and more oppressive, than any other which has ever existed. Such is the dynasty of associated and privileged wealth, which at this moment is practically the ruling power in nearly every civilized nation. The effect on human happiness of the union of moneyed and politi cal power is not a matter of conjecture. The condition of the indus trious masses in those countries in which it exists is a living com mentary on the system. In France, the suffrage for that branch of the Government which pretends to be popular is limited by a prop erty qualification, so high as to exclude all but the richest one of every two hundred individuals. A natural result of legislation so controlled is that, of a population of thirty-two millions, seven and a half are forced to live on twenty dollars, and twenty-three millions on less than thirty dollars a year each ; while all the rest of the prod ucts of their incessant and severe toil goes to , enrich the privileged few. England also has based government on property. Even the popu- 20 THE LIFE OF SAMUEL J. TILDEN. lar branch of her Legislature is wholly controlled by the moneyed in terest. The wealthy few alone are eligible to the House of Commons, or possess the elective franchise ; and the inequalities in the repre sentations and the influence of mighty combinations of money in the elections render the supremacy of wealth complete and absolute. The capitalists and landed proprietors wield the whole political power of the state for their own benefit. Property is kept in large masses in the hands of the few, by the law of primogeniture and the system of entails. Monopolies overspread the land, paralyzing individual effort, and exhausting the life-blood of the body politic. The burden of the gigantic machinery of state, the Church establishment, a pauper system, and the national debt, crushes the laboring-classes, on whom exclusively it is made to fall. In fine, all the institutions of the country and the whole course of her legislation tend to transfer the property of the many to the few ; and the results are, on the one hand, individuals with annual incomes of a million, and on the other the mass of the people receiving only the most scanty and miserable subsistence, and a fifteenth of them supported by public charity. A tendency to a union of political and moneyed power can be dis tinctly recognized in the politics of this country. It has characterized the entire policy of one of the great parties which have divided the republic from its foundation. In the convention which formed our present Constitution, this party endeavored to give to our Government an aristocratic bias. Failing to accomplish its object directly, it natu rally sought to impress that character upon the practical administra tion of the Government. Its leader, Alexander Hamilton, who had advocated in the convention a President and a Senate for life, ori ginated a funding system and a national bank. The obvious tendency of a public debt to array the rich, whose property is invested in it, in support of the Government., was the origin of the Federal heresy that "a national debt is a national blessing;" and a mammoth bank was a nucleus, around which to concentrate and consolidate the money power, and an appropriate engine to wield its influence. . . . Assiduous efforts are making to terrify the public mind with appre hensions of social disorder, to represent the great measure of reiorm which is now presented to you as " disorganizing," and to stigmatize its supporters as " destructives " and " agrarians." We, who now address you, have been the peculiar objects of these imputations ; we pause, therefore, for a moment to repel them. We entertain no senti ments adverse to social order. We seek not to destroy, but to pre- MR. TILDEN AND THE WORKING-MEN. 21 serve in their purity, the institutions of our country. We are not hos tile to trade, or its legitimate operations, or its necessary institutions. We desire to introduce into banking the great principle of equal lib erty, where application to business has, in every instance, produced the most beneficial results. We seek to arrest a system of monopoly, special legislation, and governmental interference, as disastrous to business as its tendency is fatal to our whole social and political fab ric. We do not assail property ; we merely deny to it political power. We excite no prejudice against wealth ; we merely refuse to it exclu sive privileges, either in business or in politics. We claim an equality, not of social conditions, but of political rights. Our motto is, equal protection to all, special favors to none. These are our sentiments. They accord with the immutable principles of rectitude. We rely for their support on the intelligent judgment of our countrymen. Nor has our country any reason to fear social disorder. Anarchy is but a state of transition. It cannot exist as a permanent condition of things. The very nature of man renders social order inevitable. Even temporary confusion can occur only as a consequence to a pre vious infringement of the true principles of society. All the laws of Nature harmonize, and it is only when some of them are violated that convulsion ensues. If human regulations did not produce artificial and unjust distributions of property, a state of things could never exist in which property would be endangered. Where the avaricious few have so controlled legislation as to concentrate and perpetuate property in themselves, it is natural that they should seek to exclude from political power all who have no " stake in society," and that they should regard the plundered masses as hostile to such " rights of property " and such a " social order." It is natural that they should distrust all whose sense of justice is not subdued by a partici pation in the spoil, and that they should tremble for their iniquitous possessions and the system which upholds them. But where society is constructed on just principles such apprehensions are visionary and absurd. Convulsion is the struggle of Nature with disease in the body politic, and can never occur when the system is in health. Human experience has not presented a solitary exception to these principles. The masses never were prone to disorder. All history repels the calumny. Still more absurd is it to suppose them disloyal to our pe culiar institutions. Our social system is the only one which has ever secured their rights, and cannot be changed except at their expense. In European society the few hold the state ; in ours the many. 22 THE LIFE OF SAMUEL J. TILDEN. The real danger to which our institutions are exposed is in the abandonment in legislation, of the principles on which they are founded. And we ask if a strong tendency of this character has not developed itself in our politics ? Has not the whole course of an in fluential party aimed at a union of political with moneyed power ? Has not that party sought to confine the elective franchise to the rich ? Has not one of its great leaders declared that " Government ought to be founded on property ? " Has it not at a general meeting in this city proclaimed that "the possession of property is the proof of merit ? " Has it not attempted virtually to rob the working-classes of the right of suffrage, by driving them from employment, unless they would surrender this dearest birthright of freemen to the dicta tion of those who by means of their wealth possess an accidental power over them ? And is it not now struggling to enthrone a great moneyed monopoly in absolute dominion over the currency and busi ness of the country? Ask yourselves, fellow- citizens, if the establish ment of such a supremacy be not a giant stride in a career fatal to our institutions ? And, if you yield to this encroachment, where will you pause ? Eesist, then, upon the threshold the attempt to depart from the principles on which our political system is founded. Adhere to that basis, and it can never be endangered. The immediate effect of this address was noteworthy. It armed the Democrats in the city with a clearer argument than they had before possessed. It was printed in full in the New York Evening Post and other Democratic city news papers of that day, and was copied into the Albany Argus and the Washington Globe, thus gaining a circulation not often awarded to an address adopted at a public meeting. In the previous year, at the charter election of 1837, under the depressing influence of hard times, the city had under gone a political revolution, and was carried by the Whigs by a majority rising above three thousand. They also secured a very large majority in both branches of the Common Coun cil. In 1838 the hard times had not abated, and, by charging upon the Democratic administration of the Federal Govern ment all the evils from which the people suffered, the Whigs hoped to repeat their triumph and augment their strength. In this last hope they were disappointed. They carried the MR. TILDEN AND THE WORKING-MEN. 23 city, but their majority in the Common Council was reduced to one ; and, after a spirited struggle, they succeeded in re- electing their mayor, Hon. Aaron Clark, by a bare majority of ninety-nine. It was the working-men who effected this change in the vote ; and it was Mr. Tilden who furnished them their arguments. CHAPTER IV. THE CAMPAIGN OF 1840 ME. TILDEN s SPEECH OX FINANCE. AFTER completing his academic career, Mr. Tilden marked out for himself a comprehensive course of study preparatory to his admission to the bar. He pursued this course faith fully, but leisurely. He not only held his place as student in Judge Edmonds s office, but he also became a pupil at the law-school of the New York University. Among the lectur ers of that institution were President Van Buren, Attorney- General Benjamin F. Butler, of New York, and Judge Wil liam Kent. Under such masters of the law he laid deep the foundations of his legal fame. Meantime he devoted a good share of his attention to politics. The memorable presidential canvass of 1840 aroused his deepest interest. He was a warm personal friend of Mr. Van Buren, and, what was of more importance, he was a zealous and intelligent supporter of the President s policy. Finding the man and the policy both imperiled by wide spread errors and persistent misrepresentations on questions of finance, Mr. Tilden prepared an elaborate speech in de fense of the Democracy, which he delivered at his native town of New Lebanon on the evening of the 3d of October, 1840. The subject of the speech was " Currency, Prices, and Wages." It involved such a patient investigation of intri cate points that it seems wonderful that any man could have written it during the wild excitement that prevailed in that particular year. The youthful champion of the Democracy wasted no word on the froth of the campaign. He confined -THE CAMPAIGN OF 1840. 25 himself to the solid and serious questions which divided par ties. . He took issue with the representative leaders of Whig- gery with Webster and Clay and proved himself, at the age of twenty-six, a foeman worthy of their steel. Some parts of this speech are as interesting to-day as when they were delivered. The following history of the United States Bank possesses sufficient historical value to warrant its reproduction in these pages : HOW A NATIONAL BANK REGULATED THE CURRENCY. How could a large bank, constituted on essentially the same prin ciples, be expected to regulate beneficially the lesser banks? Has enlarged power been found to be less liable to abuse than limited power? Has concentrated power been found less liable to abuse than distributed power ? If any entertained an exception so contrary to all human experi ence, the experience ought to satisfy them of its fallacy. The United States Bank commenced its operations in January, 1817. Although a nominal resumption of specie payments by the State banks took place, the currency was dangerously extended. The bank urged its notes into circulation with unprecedented rapidity ; and, the excess causing a constant exportation of specie, it sought to counteract that effect, not by reducing the currency to its proper amount, but by forced importations of specie, which it made to the extent of seven millions, and at a great loss. It continued these operations till July, 1818, when its circulation amounted to nine millions and its loans to forty-nine millions. A revulsion then com menced, and the bank began a rapid contraction. But its affairs grew every day worse. In February ^ 1819, Mr. Jones, its president, resigned, and Mr. Cheves, of South Carolina, was appointed in his place. In an exposition made several years after to the stockhold ers, that gentleman states that, as he was about to commence his journey to Philadelphia, he was apprised that the bank would soon be obliged to stop payment ; and when he " reached Washington he received hourly proofs of the probability of this event ; " that " in Philadelphia it was generally expected." He also states that on the 1st of April the specie in its vaults was reduced to seventy -nine thousand dollars, while its balances to the Philadelphia banks were one hundred and twenty-six thousand dollars. By a rigorous contrac- 2 26 THE LIFE OF SAMUEL J. TILDEX. tion of its issues and the cutting off of all its exchange business, by the whole aid of the Government and a loan in Europe, it barely weathered the storm, but was for years in a sickly condition. The prostration of business and prices during this period was without a parallel, and the bank was universally regarded as the main agent of the mischief. The reduction of the whole currency from the height of the expansion to the 1st of January, 1820, was one-third; that of the circulation of the bank was nearly two-thirds. The next great crisis was in the fall of 1825. Mr. Biddle, in his testimony before a committee of Congress, describes it as " the most disastrous period in the financial history of England," when the " wild speculations in American mines and wilder speculations in American cotton recoiled upon England, and spread over it extensive ruin," and says, that " the very same storm passed over this country a few weeks before," and " was on the eve of producing precisely the same results." He also states that this "panic, which would have been fatal to the country," was averted by his hurrying to New York and prevailing on a gentleman to accept drafts, " who was preparing to draw specie from the banks of Philadelphia " to establish a bank in New Orleans. It has been intimated that Mr. Biddle s private night- journey was occasioned by an emergency more peculiar to his own institution than he would have the public suppose ; but he admits enough. He shows how near,- even on the most favorable account of the matter, the whole system of currency, with its regulator, came to a total overthrow, and by how slight and common a circumstance it was alternately jeoparded and saved. Turn now from the account of this hair s-breadth escape, to what Mr. Biddle did not so frankly re late the source of the peril. The returns of the bank show that its circulation increased in the two years previous to July, 1825, more than 105 per cent., and in the six months previous to that time more than 57 per cent. ! I have not the means of ascertaining the increase in the circulation of the State banks during this period, but there is abundant reason to believe that it was in nothing like the same proportion. The subsequent reduction fell mainly upon them, the United States Bank succeeding in substituting, to a considerable ex tent, its notes for theirs. Its success, however, in the competition for private profit was a poor consolation to the public, who were victims to the process. Mr. McCulloch states that, during the same two years, the country banks of England extended their circulation 50 per cent., and he exclaims against such an increase, as " extrava- THE CAMPAIGN OF 1840. . 27 gant and unprincipled" an increase less than half as great as that of our " regulator! " A revulsion rather less severe occurred in the commencement of 1832. The United States Bank was greatly embarrassed. It pro cured the payment of the 3 per cents., for which the Government had provided the means, to be postponed ; and, when the time to which it had been postponed approached, it sent a confidential direc tor abroad to make an arrangement with the holders of the stocks not to present them for payment, while it held and used the money Government had provided for their redemption ! The form in which the transaction was first attempted the bank was obliged to disavow, as constituting a violation of its charter, that in which it was con summated being merely a breach of trust ! The increase of its circu lation during the two years previous to the 1st of January, 1832, was 64 per cent., and its reduction the summer after about 20 per cent. The circulation of the New York banks increased during the same period 29 per cent. ; that of the Pennsylvania banks from February, 1829, to November, 1831, about 21 per cent. It is difficult to procure returns from the banks sufficiently near the dates to afford a just comparison, but such as are procured show that the average increase, even if it were larger than that of the New York banks, was very far short of that of the United States Bank. In the fall of 1833 the removal of the deposits was made, and the panic of 1834 followed. The bank, by October, 1834, had contracted its circulation nearly 20 per cent., and its loans more than fourteen millions, as it alleged, in consequence of that measure. When its attempt to coerce a restoration of the deposits and a renewal of its charter failed, it commenced an expansion; and by July, 1835, ex tended its circulation 62 per cent., and its loans nineteen millions, or five millions more than all the reduction which it pretended it had been forced to make by the removal of the deposits ; and that, when its charter had but eight months longer to run ! The great expansion which produced the disastrous excesses of 1835 and 1836 occurred mainly in the former year; and the whole enlargement of the "cur rency during that year was 34 per cent., or, if we take the net circu lation, 31 per cent. ; and, during that year and the next, less than 44 per cent., and, if we take the net circulation, 36 per cent. The ratio of expansion of its net circulation by the United States Bank to July, 1835, was from November, 1834, 62 per cent.; from January, 1635, when the currency had reached at least a level, 46 per cent. ; 28 THE LIFE OF SAMUEL J. TILDEN. and from its last return previous to the removal of the deposits, 37 per cent. The bank is justly responsible for the whole amount of its expansion from the lowest point of contraction in 1834 ; for it had made that contraction under the pretense that such a diminution of its business was rendered necessary by the removal of the deposits ; and the vacuum in the circulation being created under favorable ex changes, was necessarily filled by the notes of other institutions, and the subsequent addition to the currency was as inexcusable as it was dangerous. Such an addition could not fail to create a most injuri ous excitement in banking and trade, and, with a tithe of the power which its friends claimed for this bank over the smaller institutions, to stimulate them to the utmost extravagance. And, when the time of this expansion is considered, no fair-minded man can doubt that it communicated the main impulse to the disastrous excesses which fol lowed. "We have thus seen this institution, which was established to " regulate " the others, twice, according to the statements of its own presidents, on the very verge of bankruptcy, and a third time extri cating itself from its embarrassments by a breach of trust which would subject an individual to a criminal punishment ; and, looking at its returns, we find each of these occasions preceded by an exten sion of its business, unparalleled in any similar institution. We have seen that, in every great expansion of the currency which has occurred during the whole period of its existence, it increased its circulation in a far larger ratio than the expansion of the whole currency. And these successive expansions, and the revulsions which followed them with short intervening seasons of quietude, have filled the whole his tory of business during that period. The extraordinary powers of this bank and its freedom from competition, while organized on the same principles and therefore subject to the same impulses as other institutions, have only encouraged it to embark on the most hazard ous adventures to extend the profits of its business ; from which it has been repeatedly extricated only by the credit of the Government or the direct assistance of the Treasury. Such was the manner in which the United States Bank " regu lated " the currency while it was a national institution. For the benefit of those who think the loss of such services the cause of the recent commercial disorders, and their restoration by the establish ment of a similar institution the sovereign panacea, I pursue its sub sequent history. THE CAMPAIGN OF 1840. 29 On the 20th of Febuary, 1836, Mr. Biddle presented a meeting of the stockholders with the new charter from the State of Pennsylva nia, congratulating them on the dissolution of their connection with the General Government, which he pronounced to he an unnatural connection, beneficial neither to " the Bank nor the Government," and declaring that the hank was now "SAFER, STRONGER, and more pros perous, than it ever was." On the llth of November, 1836, in a letter to Mr. Adams, Mr. Biddle declared that the revulsion which had then become severe was owing to the " mere mismanagement " of the Government ; denied that " the country has overtraded that the banks have over-issued, and that the purchasers of public lands have been very extravagant;" and concluded his long argument to sustain these positions thus tri umphantly : " Exchange with all the world is in favor of New York. How, then, can New York be an overtrader ? Her merchants have sold goods to the merchants of the interior, who are willing to pay, and, under ordinary circumstances, able to pay, but, ly the mere fault of the Government as obvious as if an earthquake had swallowed them up, their debtors are disabled from making immediate payment. IT is NOT THAT THE ATLANTIC MERCHANTS HAVE SOLD TOO MANY GOODS, l)Ut that the Government prevents their receiving pay for any." And this in the face of sales of public lands during that year to the amount of twenty-four millions of dollars, an<l an excess of im ports over exports of sixty-one millions! But even this great finan cier, who was competent of himself to regulate all the business of the country, could, at last, be made to learn what every man of com mon-sense had known long before. On May 13, 1837, two days after his bank had suspended, in a second letter to Mr. Adams, Mr. Biddle said : " We owe a debt to foreigners by no means large for our resources, but disproportioned to our present means of payment. We have worn, and eaten, and drunk, the produce of their industry too much of all, perhaps, ~but that is our fault, not theirs." Ko doubt ! But when had we done so ? Even Mr. Biddle would not say that it was after the writing of his previous letter. He also said that, "had the bank consulted merely its own strength, it would have continued its payments without reserve." Certainly ! He suspended for the sake of the other banks, just as he made his night-journey in 1825, and his fraudulent arrangement as to the three per cents, in 1832, for their sake. These facts all rest 30 THE LIFE OF SAMUEL J. TILDEN. upon the same testimony ! He promised also to " take the lead in an early resumption of specie payments." In the fall of 1837, when a convention was proposed to bring about a general resumption, the United States Bank at first refused to join in it ; and afterward sent delegates, who opposed resumption, and succeeded in voting down the measure through its associates and dependents. And when the New York banks were about to resume alone, on April 5, 1838, in a third letter to Mr. Adams, Mr. Biddle argued at great length that the resumption then was "premature," threatening them in an insolent tone with the consequences of the attempt, and told them to appeal to the Legislature "to rectify their mistake," and legalize a further suspension ! The New York banks resumed about the 1st of May, but the United States Bank remained suspended until the latter part of the year, when it nominally re sumed by substituting post-notes for its ordinary circulation ; or, in other words, notes bearing on their face a promise of payment a year after date for notes bearing on their face a promise of payment on demand. In the spring of 1839 Mr. Biddle resigned the presidency of the bank, announcing that, having brought it safely through all the diffi culties, and leaving it in a sound and prosperous condition, he could now retire from its management. Through the summer it struggled with the embarrassments daily thickening upon it, and in October it failed, inflicting upon the commercial affairs of the country the ex tensive mischief under which they have been suffering for the year past, but from which, thanks to the beneficent regulation of the laws of trade, they are now rapidly recovering. The speech contains one error in political economy, viz., that prices are governed by the volume of the currency ; but, although this is laid down as a principle, there are passages in the speech which indicate that even then some doubt of its truth was forming in Mr. Tilden s mind. It remained for him in his last annual message to the Legislature of New- York to refute the fallacy which he had once entertained, and which is still accepted by many would-be teachers of finance. In reproducing that portion of the speech which deals with the wages of labor, it is proper to say that allowance should be made for the marked changes which have taken THE CAMPAIGN OF 1840. 31 place in many foreign countries during the past thirty-six years. THE WAGES OF LABOE. "Wages are estimated in two modes the one in money, when they are called money or nominal wages ; and the other by the amount ot the necessaries and comforts of life which they will purchase, when they are called real wages. FLUCTUATION" IN ^MONET-WAGES INJUEIOUS TO THE MECHANIC AND * LABOEEB. Fluctuations in the currency produce the same fluctuations in money-wages as in money-prices. They subject the mechanic and the laborer to the same uncertainty, miscalculation and disappoint ment in business, that fluctuations in prices do the farmer, the mer chant, and the manufacturer. Not only this. Wages do not always rise and fall in exact proportion to prices ; and it usually happens that, when prices are high, the mechanic and the laborer find their command over the means of subsistence diminished ; and that, when prices are low, they are often, especially if congregated in large estab lishments, deprived of their accustomed employment. On the whole, then, they suffer more by the vicissitudes in the currency and business than any other class, and have, consequently, a greater interest than any other in the establishment of a stable currency. I have already sufficiently shown that the measures before the country, advocated by either party, cannot perceptibly increase or diminish the perma nent amount of the currency or the average of prices, but only make both the currency and prices fluctuate more or less ; and I trust that I have also shown that the tendency of the Democratic measures is to diminish, and that of the Whig measures to increase, these fluctuations. The general principle applies equally to prices and wages. ALL PEODUCEE-S INTERESTED IN EEAL WAGES. I design to consider the subject of wages in its widest sense as the remuneration of labor. For that purpose I shall take real wages, or wages estimated by the amount of necessaries and comforts which they will purchase, as the true standard ; and I shall regard every industrious man of whatever calling as a recipient of wages. The farmer receives wages. After he has deducted from his gross income the expenses of his farm, excluding his own and his family s 32 THE LIFE OF SAMUEL J. TILDEN. support, the residue is divided into two parts : the first, profits on the capital invested in his farm, stock, and utensils ; and the second, wages for his personal labor, skill, and responsibility in their management. Allowing for the low rate of profits which attends desirable invest ments, and the high rate of wages which attends the exercise of skill and responsibility, as well as mere labor, and regarding the fact that farms are mainly worked by their owners and their families, it can not be doubted that far the larger share of all the farmer receives and applies to the support of himself and his family, or accumulates, is in the nature of wages. The mechanic lives mainly, and the laborer ex clusively, upon wages. It is unnecessary, however, further to dis tinguish the two parts which make up the net income of the indus trious classes; for both parts are in practice affected alike by the general laws to which I am about to refer. This net income of the producers, or the amount of value which can be applied to the pur poses of support and accumulation, is evidently the real test of their prosperity. CIRCUMSTANCES WHICH DETEEMINE THE EEMUNEEATION OF LABOB. I now proceed- to inquire into the circumstances which affect the remuneration of industry in different countries. Suppose that two communities exist, each composed of the same number of laborers ; and that one of these communities, by greater industry, superior skill, or better implements, should produce twice as much as the other of the necessaries and comforts of life. If an equal division of the products of each community among its members were made, an individual in the first would receive twice as much in remunera tion of his labor as an individual in the second community ; in other words, his real wages would be twice as large. This would be equally the case, whether all the individuals in these communities were la borers, or whether they united the characters of capitalist and laborer, or whether they were divided into separate classes of employers and workmen. For, under free and equal laws, the division between these classes of the whole proceeds of industry would be equitably adjusted, and the positive amount received by the laborer would de pend upon the amount to be divided ; or, in other words, the real wages of labor would depend upon its productiveness. And the actual rate of real wages in every country does in fact depend upon the productiveness of its industry, except so far as the whole pro- THE CAMPAIGN OF 1840. 33 ceeds are diminished by the consumption of the Government, or changed from their natural distribution by unequal legislation. The connection between the remuneration and the productiveness of labor is everywhere obvious. The return of agricultural produce, ac cording to Baron Ilumboldt, is in Germany, where wages are low, not over fourfold the seed ; and there is reason to believe that it is not more in the larger part of Europe. The produce of wheat in the principal grain-exporting regions near Odessa and the Baltic does not exceed three* or four times the seed ; and the labor of a man will not obtain one-eighth the quantity it would in Illinois. Arthur Young said that ag ricultural labor in England at double price was cheaper than in Ireland. It was stated in evidence before the factory commission in England that, although labor is twice as high in the English factories as in those of many other parts of Europe, it accomplishes more than twice as much, and, if measured by that standard, is really cheaper ; and the fact has been repeatedly verified. The United States fear the competition, not of India, where labor is lowest, but of England, where it is next highest to our own. England fears most the com petition of this country, where labor is the highest in the world. The principal causes connected with political institutions which affect the productiveness of industry are : first, security of property ; and, secondly, freedom of industry. Security of property, in its most comprehensive and just sense, includes not only security to the capitalist in the possession of prop erty rightfully acquired, but also security to the laborer in the imme diate results of his toil. The motive to labor is the enjoyment of its fruits, and just in proportion as the prospect of that enjoyment is increased or diminished will the motive be strengthened or weak ened and industry flourish or languish. Insecurity, whether pro ceeding from open violence, from oppressive taxation, or from un equal legislation, exerts a deleterious influence upon industry. It di minishes the tendency of capital to increase and invest itself in labor- saving machinery and works of public utility, and it lessens the dili gence and efficiency of labor. In India and Turkey, and most despotic countries, insecurity of person and property exists in every form and to an aggravated ex tent. Even in France, the people, until recently, have been so sub ject to invasions and civil dissensions that private capital does not hazard investment in mills, bridges, canals, or railroads, which would have been exposed by such events to destruction ; the peasantry live 34 THE LIFE OF SAMUEL J. TILDEN. grouped in villages, compelled to go daily several miles to their little patches of land, and to raise their heaviest crops on the nearest land to save the expense of transportation, and after all subjected to great expense in cultivation ; taxation is heavy, and unequal legislation prevails. In England the capitalist is secure ; but the earnings of the laborer are largely consumed by taxation, or transferred to the privi leged classes. I was recently told by an intelligent English manu facturer that most of the operatives were improvident and reckless. How should it be otherwise? "What rational hope have they of per manently improving their situation ? All experience has proved that the goad of necessity will not make the laborer diligent or efficient as the hope of bettering his condition. Freedom of industry is indispensable to the productiveness of labor. If no artificial obstacle exists, every man will naturally devote himself to the kind of business to which .he is most adapted, and which will therefore be most profitable to himself, and the largest possible amount will thus be produced. Every restriction on business and every monopoly tends directly to force a misapplication of labor, and thus to lessen its productiveness. In most countries, scarcely any business can be engaged in without a long apprenticeship or a special license ; or prosecuted except under a multitude of restrictions which frequently interpose an absolute barrier to improvement. Ex clusive privileges to follow particular trades or branches of mechani cal or manufacturing or other business abound. The prices of mo nopolized products are invariably enhanced ; and, while a part of the difference goes to increase the profits of the monopolist, the rest is totally lost in ttie misapplication of labor, or in the diminished econ omy which exemption from competition always occasions. I have already remarked that the actual remuneration of labor in a country does not depend exclusively upon its productiveness, but is also affected by taxation and unequal legislation. Taxation not only discourages production, but it consumes a portion of what is produced, and, if, as in most countries, it is unequally imposed, it diminishes still more the share assigned to the laborers. Unequal legislation, monopolies, and exclusive privileges of every description, not only lessen production, but alter the distribution of what is pro duced, invariably to the injury of the laboring-classes. These causes and those which have been already referred to, will, I believe, satis factorily account for the difference in the reward of labor and in the condition of the industrious masses im various countries. I shall con- THE CAMPAIGN OF 1840. 35 fine my illustrations to a single instance ; and I select ^England, be cause the evils to which. I have alluded exist there in a less degree than in most countries, and especially because the system of policy which a powerful interest is now seeking to fasten upon this coun try is derived from her, and its tendencies are best exemplified in her condition. EXAMPLE OF ENGLAND. In England, restrictions upon the freedom of industry and mo nopolies are very numerous. The exchange of domestic productions is embarrassed by excise, and the regulations prescribed to secure the revenue from evasion frequently prevent improvements in manu facture. But I pass over the minor monopolies which exist more or less in- all kinds of business, to a few of a general and important char acter. The corn laws impose an annual tax upon the country esti mated by high authorities to be at least one hundred and twenty mill ion dollars, one-fourth of which is supposed to enhance the profits of the great landed capitalists, while the other three-fourths are lost in forcing the cultivation of grain upon soils fit, at best, only for pasturage. And this tax, being laid upon an article of necessity which is consumed in nearly an equal proportion by the poor and rich, operates as a capitation tax, and its burden falls mainly upon the laboring-classes. The other monopolies of articles of food and necessity are estimated by the Westminster Review to impose a tax, falling also upon the same classes, of seventy million dollars, and that of the products of the colonies thirty millions. The -annual cost of the established Church, to which three-fifths of the people are dis senters, is forty millions, and that of the pauper system is thirty -Jive millions. The annual charge for th,e national debt is one hundred and forty millions, and that for the ordinary expenditures of the Gov ernment one hundred and ten millions. These two hundred and fifty millions " the makers of the laws have contrived " to assess, says Sir Henry Pownell, "first by the^ .selection of the taxes imposed, and secondly by the selection of taxes repealed," so that only thirty mill ions of it falls upon the landlords, while the remaining two hundred and twenty millions falls upon the industrious classes. The aggre gate of the items which I have enumerated is an annual burden upon the labor of England of Jive hundred and forty-five million dollars, and most of which is taken directly from that portion of the pro ceeds of industry which is assigned to the laborers as the reward of their toil. * 36 THE LIFE OF SAMUEL J. TILDEN. Mr. Pitt said, years ago, that u three-fifths of the price of lahor is said to come into the Exchequer. Mr. Bulwer has recently esti mated that " every working-man is taxed to the amount of one-third of his wages." The monopolies have the same influence as taxa tion, and must still further reduce the amount finally left to the laborer of his own earnings. The whole effect of either is not ex hibited by the money-price of labor, nor until the laborer purchases with his wages the means of subsistence at enhanced prices. Is it wonderful that the laboring-classes of England are plunged in poverty and wretchedness, and that, when under the vibrations of a monopoly banking system, deprived of their accustomed pittance, they are subjected to absolute starvation ? Is it wonderful that, ac cording to the Foreign Quarterly Review, one-sixth of the whole popu lation are paupers ? ME. WEBSTER ON WAGES. Mr. Webster, in a recent speech, narrates at length his observa tions in England, as to the wages of labor, and argues that the Inde pendent Treasury will reduce wages in this country to the same con dition. He is equally unfortunate in his reasonings and in his illustrations. Is he so ignorant of the first principles of the science of currency as to suppose that the Independent Treasury can alter in the least the average amount of the whole currency, or affect it at all, further than to substitute specie for paper in the small part of it used in Government transactions ? Does he not know that the whole system of a currency such as ours rests upon the principle that it cannot permanently vary, in its amount, from the specie which would have circulated if it had not been displaced by paper ? and that a specie currency differs from a paper currency not in its average amount, but only in its comparative steadiness and uniformity ? that if we had a specie currency, of which there is not the least possible danger, the average price of labor would be the same as under a paper currency ? Mr. Webster talks of the evil of a contracted currency. Does he think that a metallic currency is necessarily small ? Is he not aware that the specie currency of France is twice as large, in proportion to population, as ours of paper and specie both ? that her low wages depend upon entirely different causes from a scanty currency ? In referring to the effect of a specie currency on wages, is he un- ? nf ormed of facts as well as of principles ? Does he not know that THE CAMPAIGN OF 1840. 37 the condition of laborers in Russia where the currency is nearly all paper is worse than in almost any other country in Europe ? that in Austria where the currency is half paper their condition is worse and their wages lower than in France? that in Cuba to which he specially refers and where the currency is all specie wages are very high ? Does he not know that, in the countries which hap pen to have both, the low wages are no more owing to the specie currency than to the fertile soil or genial climate which some of them have also, but which oppression has rendered unavailing ? In the inquiries which he tells us he made while in Europe, into the condi tion of the laboring-classes, did he not learn, as the cause of their degradation, that they are misgoverned ? Did he not find that, even in the least misgoverned countries, the burden upon labor of public debts, taxation, and monopolies, by consuming its earnings and les sening production, exceeds every year twice the whole amount of their currencies, whether paper or specie, and fifty times the annual interest of that amount ? Mr. Webster takes all his illustrations from the condition of the laborers of England. What has that to do with the measufes whose effects he is endeavoring to show ? Has England an Indepen dent Treasury, or even a specie currency ? On the contrary, has she not that very union of the Government with a central bank which Mr. Webster seeks to bring about in this country ? Has she not a half paper currency, "regulated" by a monopoly, which has been twenty-five of the last fifty years suspended, was again on the verge of failure in 1825, and has been twice in danger in the last four years ? and which, although somewhat restrained by the specie part of the circulation, is still able to produce such fluctuations in the currency as to add to the other miseries of the laborers uncertainty in obtaining even their scanty pittance ? In all Mr. Webster s investigations into the condition of the labor ing-classes of England, he could discover not one of the institutions against which he seeks, by his reference to it, to excite a^ senseless clamor. But he could have seen if his eye could discern such things the natural results of a Government which is founded, as he said all governments ought to be, "upon property." He might have seen the effects of the spirit of monopoly, which he so cherishes in this country, written in the suffering of millions of human beings. I believe, gentlemen, that I express a sentiment common to us all, and which struggles indignantly for utterance, when I say that the 38 THE LIFE OF SAMUEL J. TILDEN. man who could witness what Mr. Webster describes, and, returning to our happy land, could compare the condition of that oppressed people with ours not to warn us against the system which caused their degradation, but to urge the establishment of a great moneyed monopoly, in absolute supremacy over the business interests of this country can have little appreciation of the causes of our prosperity, and little sympathy with the principle of equal liberty, on which that prosperity is founded. He may be the appropriate agent of the stock jobbing interests, seeking the partial and unjust advantages which they possess elsewhere ; but he is unfit to guide, as he will do if his present efforts are successful, the administration of a free Govern ment CAUSES OF THE LAEGE EEWAED OF INDUSTBY IN THIS COUNTBY. The sources of the prosperity of our own country are obvious. The security of all classes in their property causes the most rapid growth and the most useful investment of capital, and increases the diligence and efficiency of labor. The general freedom of industry enables all to apply their labor to the utmost advantage. The strongest inducements and the widest competition stimulate to rapid improve ment. Our industry, in its infant energies, has become, tra the whole, more productive than that of any other nation. But a small portion of its proceeds has been consumed by public debts and taxation, and but few monopolies have existed to change their natural distri bution. The reward of labor is, consequently, greater than in any other part of the world. Our social order is based upon equal liberty. Its fruits are prosperity, happiness, and virtue. This is our genuine American system, and the only one that deserves the name. ABSURDITY OF THE CEY " AGEAEIA^ISM." I am aware that an effort has been made, in a widely-circulated pamphlet, called " The Crisis," to excite alarm for the security of property. The attempt originates in an entire ignorance of the prin ciples which distinguish our system from the European. There, where unjust legislation has withdrawn property from the masses who have earned it, to concentrate it in the few, the plunderers may well fear lest their booty be reclaimed lest the physical power from which they have wrested it shall, sooner or later, rise to avenge the wrong. But here, where property diffuses itself through the masses who have produced it, and will do so more and more if its natural tendency is THE CAMPAIGN OF 1840. 39 not counteracted by unequal legislation, property is united with the physical power of society, and rests upon the opinion and the interests of the whole people. As Mr. Jefferson said, Government is the strongest, he might have added, property is the most secure, in this country of any in the world. The eccentricities of individual opinion can never endanger either. The cant cry of " agrarianism " comes, in other countries, from those who are themselves practising that worse species of it, which takes by force or fraud from those who have little, to give to those who have much. And, in this country, it in variably comes from those who are seeking to establish some scheme of unequal legislation or special privilege. But here it. is not merely hypocritical, it is absurd The foregoing excerpts show to some extent the scope and purpose of the speech ; but not fully. It was designed not only as an affirmative argument, but as an answer to the various arguments made by the Whigs, and it covered the whole ground. The following brief passage may be profitably read and pondered by the influential class to whom it is ad dressed : An unstable currency, producing instability in business and prices, is peculiarly injurious to the farmer. Neither his education nor his disposition accustoms him to watch the barometer of the exchange. When he has conducted his business with prudence and skill, with a familiar knowledge and sagacious estimate of all the circumstances that belong to it, he ought to be safe. He ought not to be subject to the tremendous agency of an unseen cause which may disappoint his wisest calculations and overwhelm him. in sudden ruin. He ought to be secure, in the tranquillity of his fireside, from the curse of an un stable and fluctuating currency. This speech brought Mr. Tilden into friendly relations with the leading financial writers of the country. Azariah C. Flagg, who was publishing at that time, in Albany, a cam paign paper called the Rough-Hewer, printed the speech as an " extra " to his paper, and caused it to be distributed far and wide. It survived the overwhelming defeat of Mr. Van Buren and the Democratic party. On the 21st of December, 1840, Cond6 Raguet, of.Philadelphia, the distinguished politi- 40 THE LIFE OF SAMUEL J. TILDEN. Cal economist and author of several standard works on bank ing, currency, and free trade, wrote to William Cullen Bry ant, saying : " If you can give me the address (by mail) of Mr. Tilden, who delivered an address last October at New Lebanon in your State, you will oblige me. I wish a copy of this most masterly production to send to a friend in Eng land, who knows how to appreciate the truths of political economy." On the 19th of January, 1841, Mr. Raguet wrote to Mr. Tilden, acknowledging the receipt of twelve copies of the speech which, he says, " will be distributed among gentlemen who know how to appreciate the worth of sound doctrine set forth in clear and intelligible language." He adds : "There is in this city (Philadelphia) a small club of gentlemen who study political economy as a science, and who intermeddle with politics only so far as to withhold their suffrages from those who are identified with false views of banking and cur rency and the freedom of trade, and from three or four of them I have heard the remark, which corresponds with my own opinion, that your speech is the clearest exposition of the subjects to which it relates that has yet appeared in that department of composition." William M. Gouge, of Wash ington, also wrote to Mr. Tilden in regard to the speech, and said, among other things : " Henry Lee, Esq., of Waltham, Massachusetts (formerly of Boston), has had his attention attracted to it by an extract in the Globe. He wishes to procure a copy of the speech, but says he does not know where to address you. You will oblige me by sending him a copy if you have one to spare. Mr. Lee was selected by the Nullifiers as their candidate for Vice-President. He is a man of great intelligence and respectability." Such compliments from such sources come rarely to a young man who essays to be a teacher of political economy. It was not he whom they praised but his work, and to that work they applied the test of critical rules based on extensive knowledge. CHAPTER V. HIS LAW-OFFICE. HIS ACQUAINTANCE. SILAS WEIGHT AND OTHERS. HE ESTABLISHES A PAPER, HELPS TO ELECT A PRESIDENT, AND DECLINES THE NAVAL OFFICE. 1841- 45. AFTER Mr. Tilden s admission to the bar, in 1841, he opened an office for the practice of his profession in Pine Street, in the city of New York. There came to him clients in moder ate numbers, attracted by the growing reputation of the wise young counselor. Such as intrusted their business into his hands were more than satisfied with the result. They found him patient, painstaking, and almost always successful. He made himself the master of a case before he undertook to prosecute or defend it. All possible points or objections which might arise in the trial of a cause presented them selves, first of all, to his mind, and he was therefore prepared to meet them. No client in those early days or later found fault with him, but one and all became his eulogists, and helped to extend the lines of his professional pursuits. But he did not devote himself exclusively to the law. His office was visited more frequently by thinkers than by clients. Thither came editors and writers, political econo mists and free-traders, politicians and statesmen. The trim figure of Martin Van Buren might sometimes be seen ascend ing the steps. He went to draw inspiration from the fresh and vigorous mind of his young friend. William Cullen Bryant, then in the prime of his useful life, was also an occa sional visitor. He had faith in the soundness of Mr. Tilden s opinions, and, though they have often differed since on politi cal subjects, the strong bond of personal friendship existing 43 THE LIFE OF SAMUEL J. TILDEN. between them has never been broken or wrenched. John Van Buren brilliant, lovable, erratic Prince John delighted in the old Pine Street office. He could talk sense or nonsense by the hour, and he never wearied of either. To the end of his days he looked up to Mr. Tilden as his best adviser and one of his dearest friends. There also came John Bigelow, then a young 1 lawyer just admitted to practice, but destined to win a name in the fields of journalism, statesmanship, and literature ; and Parke Godwin, his friend and brother-in-law, who early developed a tendency to independent and vigorous thinking. There was one other visitor, who came rarely, but who was even more welcome than those friends whom I have enumerated. His name was Silas Wright. He was at that time a Senator in Congress. He was in the fullness of his fame, between forty and fifty years of age a large man, mentally and physically, tall and broad-shouldered, with a Websterian head, and with a power greater far than Webster possessed of awakening the enthusiasm and admiration of his personal fol lowers. He holds to-day no very high place on the scroll of fame. He is known by the rising generation in the State of New York as a Senator and Governor, who won his victories and sustained his one great defeat and that is almost all. In his native State of Massachusetts his name is hardly known by those who have grown up since he died. He was elo quent, but the traditions which keep alive the eloquence of Henry, Otis, and Adams, of Randolph, Webster, and Clay, do not exist in regard to Wright, or, at least, are confined to a narrow circle. He was successful, but his success, by his own deliberate act of self-sacrificing friendship, stopped short of the goal of the average American statesman s ambition the presidency and left him to be enrolled in the more numer ous company of Senators who come and go and are forgotten. He might have been the candidate of the Democratic party for President in 1844, but he peremptorily refused to permit his name to be used in a convention which had slaughtered his friend Martin Van Buren, lest it should appear that .per- ESTABLISHES THE MORNING NEWS. 43 sonal ambition had cooled the ardor of his devotion. He was nominated for Vice-President, without his knowledge, by that same convention, but declined to run. But, though his elo quence may be forgotten, and his defeat rather than his suc cesses remembered, yet the influence of his life has left its impress on the hearts of many men, and on none deeper than on Samuel J. Tilden s. Tilden loved him. He saw in him the embodiment of those virtues which ennoble the public ser vice. In age, in personal appearance, in habit of thought, and in mental endowments, the two men differed widely; but a strong sympathy, which even- death could not sever, at tached Mr. Tilden to Silas Wright. So it came to pass that he was the most welcome of all the visitors at the Pine Street office. In 1844 the Democrats desired to establish a morning newspaper in the city of New York, with a special view to influencing the presidential election of that year. Mr. Tilden was approached on the subject, and offered to subscribe lib erally, considering his limited means at that time, to further the project. But the leading men of the party in the city and State demanded more of him they wished him to assume the management and editorship of the paper. They knew he was a ready writer, and they did not doubt that he would succeed in any business he undertook. It was the first real sacrifice for the party which he had been called upon to make, and it was no small sacrifice. He was treading his wav slowly to fame and fortune in the most exacting of the professions, and to abandon it temporarily was to endanger if not destroy his practice. He had entered upon the law with the fixed de termination of making it the business of his life, and no prom ise of success in other fields could divert him from it. But he accepted the counsels of his party as the demand of duty, and consented to assume the management of the Morning News. Mr. Tilden was always loath to place himself under pecuniary obligations to others, and, fearing lest the venture should prove a failure, he furnished most of the capital. He 44 THE LIFE OF SAMUEL J. TILDEN. associated with himself in business Mr. John L. O Sullivan, a brilliant writer and sometimes impetuous man, who afterward acquired distinction in the consular service of the United States and as the editor of the Democratic JReview. The News was successful from the beginning, not only as a business enterprise, but as a political power. There never was a time in the history of the Democratic party when dis cretion, vitalized by courage, was more essential to journal istic success than during the canvass of 1844. Mr. Folk s nomination for the presidency, and the defeat of Mr. Van Buren, made New York the battle-field of the contest. To promote harmony, and to attest the fidelity of Van Buren s friends, Silas Wright consented to leave the Senate of the United States, and to accept a nomination for Governor.. But, notwithstanding the unselfish course adopted by Van Buren and Wright, the Whigs were hopeful of securing a sufficient number of votes from disaffected Democrats to carry the State of New York for Clay in which event they felt that his elec tion was assured. The Whigs also counted on other divisions to aid them, and foremost among those divisions was that produced by the " Native American " movement. This germ of Knownothingism sprang into existence, gathered strength, and took form, just before the charter election, in April, 1844. The Democrats had nominated Mr. Coddington, and the Whigs Mr. Franklin, for Mayor, when the Natives held a meeting and nominated Mr. Harper, of the well-known publishing firm of Harper & Brothers. Mr. Harper was elected over the can didates of both the great parties by the surprising majority of 4,316. The Native Americans professed to occupy neutral ground between the Whigs and Democrats, and declared that their organization had no other purpose in view than to pre vent adopted citizens from monopolizing the local offices. As a majority of these adopted citizens would naturally affiliate with the Democracy the party which came into existence on the question of the repeal of the Alien and Sedition laws a bold effort was made to unite the Native Americans in support of the HELPS TO ELECT A FKESIDENT. 45 Whig candidates. If that effort had succeeded, the Whigs would have carried New York, and Mr. Clay would have been President, for the Natives had recruited their strength almost as largely from the Democratic as from the Whig ranks. To defeat the scheme, and to win back to the Democratic party the voters who had gone off on this side-issue, was the work to which Mr. Tilden particularly devoted himself through the columns of the Morning JVews. The " American mechanics," as they delighted to call themselves, constituted a class among whom he was no stranger. Long before this " Native " ques tion had arisen, he had endeared himself to them by the reso lution and address previously referred to, and through the publication of which they had gained important political rec ognition. They were more tolerant, therefore, of his advice than of that of almost any other Democrat. The result of the election in the city showed that he had worked to some pur pose. Mr. Polk secured a majority of 1,734, and Mr. Wright a majority of 3,386, while the Native Americans elected their candidates for the Assembly, the State Senate, and Congress. Mr. Polk carried the State by a plurality approximating 5,100, while Governor Wright was elected by 10,033 majority over Millard Fillmore, the Whig candidate for Governor. After the election, Mr. Tilden brought his journalistic career to a sudden close. He presented his entire interest in the Daily N~ews which had come to be a valuable piece of property to his partner, Mr. O Sullivan, and returned to the practice of the law. In the spring of 1845, after Mr. Folk s inauguration, Mr. Tilden visited Washington in the interest of sonue of his friends who were candidates for positions under the Govern ment. He found there the usual crowd of applicants for places, but as he wanted nothing for himself he was accorded a readier hearing than others. After an interview with Mr. Polk, and with some members of the cabinet, he staid to abide the development of events. He was surprised at the cordial reception which awaited him on all sides, but he had 46 THE LIFE OF SAMUEL J. TILDEN. no suspicion of the cause of it till Governor Marcy, who bad just been appointed Secretary of War, met him one day, and, seizing his hand, exclaimed : " I congratulate you most heart ily. They have decided after all to give it to you." " To give what to me?" asked Mr. Tilden. " The New York Naval Office. We talked it over in the cabinet to-day, and the President has decided upon it." To most men this would have been a tempting offer. Mr. Tilden had just completed his thirty-first year, and he had his fortune to make. The New York Naval Office was considered one of the best places in the President s gift. A dozen years later the office was sought and held by a distin guished statesman who had been a Senator in Congress, Gen eral John A. Dix. But Mr. Tilden did not hesitate for a moment. He promptly replied : " I won t take the place. I came here to help others, and not to push myself. Moreover, I resolved when I was admitted to the bar that I would never hold an office on account of its pecuniary reward. If I take any position, at any time, it must be in the line of my profes sion, or a post of honor, but at present I will take nothing." To the resolution expressed at that time, Mr. Tilden has always steadfastly and strictly adhered. CHAPTER VT. IN THE ASSEMBLY AND CONSTITUTIONAL CONVENTION 1846. IN the autumn of 1845 Mr. Tilden accepted a nomination for the New York Assembly, and was elected. He took the place because Governor Wright greatly desired that he should. He had neglected his own affairs so much in the public ser vice since he came to man s estate always without fee or the hope of reward that his lessening income warned him that he must devote himself to his profession if he wished to es cape the inconvenience of poverty. But Governor Wright s wishes were law to him, and it was, indeed, a time when the Governor stood in sore need of the active exertions of all his friends. It is not perhaps desirable unless by way of warn ing to revive the memory of old feuds in the Democratic party, but it is necessary, briefly, to recount the situation of public affairs at the time. Mr. Tilden served in the Assem bly, because that situation, and the events which grew out of it, had a very marked effect on Mr. Tilden s subsequent life. On the 1st of Januar} , 1845, when Governor Wright was inaugurated, the future of the party was full of bright promise. The Hunkers and Radicals had"buried (or otherwise concealed) their hatchets, Mr. Polk was triumphantly elected to the presidency, and Mr. Wright to the governorship, while the people everywhere in the State had shown a disposition to discourage or ignore the faction-fights of their leaders. But the bright promise was soon broken, and the future quickly clouded. Within a few days of the assembling of the Legis lature the leaders of the factions were at loggerheads again, 48 THE LIFE OF SAMUEL J. TILDEN. first over the choice of a Speaker of the Assembly, then over the election of a Senator in Congress, and finally, and more fiercely, over the policy of calling a constitutional convention, and over a bill appropriating money for building the Genesee Valley Canal, for which the Hunkers voted, and which the Governor vetoed. Added to all this was the prospect of a growing coolness between the Administration of Mr. Polk and the friends of Governor Wright. In "Washington it was feared that Wright was being worked up into a presidential candidate for 1848, and in Albany it was charged that no sense of gratitude was shown by the President toward those who had done so much to compass his election. Notwithstanding these feuds, however, the Democrats carried the State by a reasonably large majority in the fall of 1845, secured both branches of the Legislature, and seemed tolerably strong at the beginning of 1846. Governor Wright had taken care to have more of his personal friends in the law-making body than were there the previous year. The most discreet, and therefore the most effective, of these friends was Mr. Tilden. The result was, that Governor Wright grew stronger, and at the end of the session appeared to have regained his old su premacy in the State. The general business of the session was not important, but on all questions relating to finance, to the saving of the people s money, to the remission of taxes, and to the enlarge ment of personal liberty, Mr. Tilden showed the spirit and capacity of a leader. On the day before the final adjourn ment (the 12th of Ma^, 1846), the news reached Albany that war had been declared between the United States and Mexico. A joint resolution was immediately introduced, which Mr. Tilden warmly favored, authorizing the Governor to enroll fifty thousand men to meet the emergency, and ap propriating one hundred thousand dollars for that purpose. He opposed the annexation of Texas, but he urged the vigor ous prosecution of the war waged against those who had in sulted the flag of our love and commemoration. IN THE ASSEMBLY AND CONSTITUTIONAL CONVENTION. 49 While serving in the Assembly, Mr. Tilden was elected a member of the Constitutional Convention of 1846. In that body he played a distinguished part. It was the desire of the president of the convention to place him on the Judiciary Committee, and the place was congenial to his tastes. But Governor Wright said this to him : " Don t do it. The framing of a really satisfactory judiciary article is an impossi ble task, either now or hereafter. If the members of the com mittee reach any agreement among themselves, I shall be greatly surprised. If the work of any of them meets the ap proval of the convention, I shall be more surprised. The ar ticle which will be adopted in the end will be made up in committee or convention of concessions and compromises. Go where you can make yourself more useful." This advice, which covered a very noteworthy because a very accurate prophecy, was followed by Mr. Tilden, who took the second place on the Committee on Canals and Finance, of which committee Michael Hoffman was chairman. This committee reported the following articles, on the power of the Legis lature to create debt, which were adopted : 1. No money shall be paid out of the Treasury except in pursu ance of a law specifically appropriating the same, and designating the object to which it is to be applied. 2. The credit of the State shall never be loaned. 3. The State may borrow, to meet contingencies, moneys, which in the aggregate shall not exceed one million dollars, and the moneys so borrowed shall be applied to the purpose for which they were ob tained, and no other. 4. This restriction not to apply to money which it may be neces sary to raise to repel invasion or suppress insurrection. 5. Except the debts specified in the third and fourth sections of this article, no debt shall be created without at the same time laying a direct annual tax, sufficient to pay the interest and redeem the prin cipal in eighteen years; but no such law shall take effect until it shall, at a general election, have been submitted to the people, and have received a majority of the votes cast at such election. If modifications of these stern doctrines had not been 3 50 THE LIFE OF SAMUEL J. TILDEN. urged and adopted, the financial system of the State of New York would have been as near perfection as human enact ments are apt to go. To Mr. Tilden is due, in a large degree, the credit of this work. Michael Hoffman, who was an able financier, accepted Mr. Tilden s suggestions, and sought his counsels. The portion of the work to which Mr. Hoffman more exclusively devoted himself was that relating to the canals ; this threw the question of the State debt on Mr. Til- den, but he in turn was greatly aided in carrying it through the convention by the intelligent zeal and earnest eloquence of Mr. Hoffman. Together these men accomplished a vast labor for the State. On the 9th of October, 1846, the Constitutional Conven tion adjourned, and Mr. Tilden was released from those public duties which had occupied his time since the assembling of the Legislature in January. But he could not return to his profession, for on the first day of the same month Silas Wright had been nominated to the office of Governor by an overwhelming majority in the Democratic Convention. A week earlier, the Whigs had placed John Young in nomina tion. A feeling prevailed that the election was to decide the fate of Wright. If he triumphed, he would be the next Pres ident of the United States. If he failed, he might never again rise to prominence in politics. Mr. Tilden felt this, and he worked for him with all the devotion which love in spires. Nevertheless, Silas Wright was defeated, and defeated, too, by more than 11,000 majority. He went to his home in St. Lawrence County, resumed his business as a farmer, gave no outward sign of suffering, but in nine months he died. After the defeat of Governor Wright, Mr. Tilden renewed his resolve to return to the practice of his profession, and not again to be diverted into accepting nominations for office. He kept this resolution in spirit, if not in letter. He attended the Buffalo Convention in 1848, as a delegate and a friend of Mr. Van Buren ; but he took no very active part in the can vass. One other departure from this rule forms the subject of the next chapter. CHAPTER VII. SUMPTUARY LEGISLATION". IN 1855 Mr. Tilden was nominated for Attorney-General of the State of New York by that portion of the Democratic party which had acquired the name of " Soft Shells." The political situation was peculiar. At the election of the pre vious year (1854) Governor Seymour, who had been renomi- nated by the Democrats, was defeated by a vote of 156,495 for Seymour, and 156,804 for his successful competitor, Myron H. Clark. At the same election the Know-nothings cast a vote of 122,282, and the "Hard-Shell" Democrats polled 33,850 votes. The canvass was very exciting, and the excite ment grew chiefly out of the fact that, during the previous winter, the Legislature passed a prohibitory liquor law which Governor Seymour vetoed. He based his veto on the broad ground that the act was unconstitutional (the ground sub sequently taken by the Court of Appeals), but none the less he was fiercely attacked in various quarters. The Prohibi tionists united in the support of Myron H. Clark, who was also adopted by the Republican party, which was then in the first year of its existence with an unperfected organization. The divisions in the Democratic ranks, and the large vote drawn off by the native Americans, contributed to Governor Clark s success. His election was hailed by the Prohibitionists as a triumph of their principles. What was commonly called the Maine Liquor Law passed the Legislature of 1855, and was signed by the Governor. Under the stimulus of success the Prohibitionists grew somewhat intemperate in their zeal, and threatened to drive into private life those officials, includ- 52 THE LIFE OF SAMUEL J. TILDEN. ing judges, who questioned the propriety or legality of their acts. This, then, was the situation when Mr. Tilden was nomi nated for Attorney-General. The Prohibitionists were in power ; the Know-nothings were steadily gaining strength, and the Democrats were divided and appeared to be losing ground rapidly. But Mr. Tilden s fine and growing fame as a lawyer would have made him a great accession to the ranks of any party. The Know-nothings would gladly have adopted him if he had even consented to hold his peace on the doctrines which they advocated. But he took most emphatic ground against their proscriptive policy, and boldly championed the rights of adopted citizens. The Prohibitionists would have enrolled him in their ranks, notwithstanding his Democratic antecedents, if he had met them half-way. It seemed, at least, to be the part of prudence that he should keep quiet on the issue of prohibition during the canvass. But prudence of that sort was never an element of his nature. Pending the canvass a note was addressed to each of the four candidates for Attorney-General (for the Prohibitionists, the Know-noth ings, and the " Hard " and " Soft " Democrats had all nomi nated tickets), asking his opinion on the question of the pro hibition act. Mr. Tilden s reply to that note was as follows : NEW YORK, October 3, 1855. GENTLEMEN : Your letter asking my opinion as to the law recently enacted in this State, and entitled " An Act for the Prevention of Intemperance, Pauperism and Crime," has been received. The question relates to the functions of the office for which I have been nominated, and may reasonably, and does, in fact, largely occupy the attention of the electors. Under the circumstances, I have no hesitation in stating to you opinions which have been expressed to so man^ persons and for so long a period as to protect me from the sus picion of shaping them to the present exigency, and which accord en tirely with the rules for construing our State and federative constitu tions, the principles of political economy, and the convictions as to the proper sphere of government by which my political action has been hitherto invariably guided. SUMPTUARY LEGISLATION. 53 The design of the law to which yon refer is to stop the use of all distilled spirits, wines, ales, and beers, except for manufacturing, medicinal, and sacramental purposes, by disabling all individuals from obtaining these articles, unless from certain quasi public officers in vested with legal power to judge, in their own absolute discretion, as to the probable nature of the use intended by the purchaser. It is not strange that the authors of an act which aims at controlling the tastes and habits of three and a half millions of people, in a mat ter which each individual must regard as peculiarly, if not exclusive ly, personal to himself which aims at working, by a legislative fiat, an instantaneous revolution in the traditional customs of large classes, in a particular in respect to which all men are apt to be most tena cious should deem it necessary to invoke the aid of a novel and extraordinary legal machinery. Intent on such an object, they nat urally saw what it required, rather than what the constitution al lows. They devised and incorporated into this law a special criminal procedure, on which they obviously relied for the enforcement of its prohibitions and penalties. That procedure is wanting in the char acteristic features and essential elements of the common-law proced ure applicable to such cases, as it has been immemorially practised in this State, and as it has been defined, expounded, and upheld, by an unbroken series of our judicial decisions, as well as by the courts of our sister States, of the Federal Government, and of that country from which the common law itself was derived. Nor does the act stop here. Eeversing a fundamental rule of evidence, which is founded in reason and natural equity, and has been for ages the shield of individual rights and personal safety, it presumes guilt instead of innocence. It declares a delivery to be presumptive evi dence of a sale, and the sale to be sufficient proof of an unlawful intent. Conceding certain uses to be so proper and necessary that the sale cannot be wholly forbidden, it makes the seller an inquisitor into the secret purpose of the buyer ; it then distrusts its own agent and assumes to deal with the intent with which he does an act au thorized by it as lawful ; and, shrinking from itself attempting to prove the true nature of that intent, it pronounces him guilty unless he acquit himself by proof of an equally difficult character. It is but fair to add that the act applies the same code to every citizen who delivers a bottle of wine or a glass of ale for the most useful or humane purpose. Another of its provisions passes sentence of out lawry upon certain property, and abrogates all remedies for its re- 54 THE LIFE OF SAMUEL J. TILDEN. covery, even as against a thief or robber, unless upon the impracti cable condition that the true owner shall first prove affirmatively the absence from his own mind of the intent to sell. Another totally perverts an ancient and well-settled legal definition, in order to at tach the incidents of a nuisance to property, under circumstances that bear no analogy to that character. And, in many respects, the act works sweeping legislative confiscations of private property. It is, in my judgment, against precisely such legislation as this that our State constitution intends to protect every citizen, when it de clares that no person shall " be deprived of life, liberty, or property, without due process of law" These latter words are an early legal paraphrase of the words " law of the land," in Magna Charta, which are also adopted from it into another provision of our State constitu tion. The restraints they create were originally imposed on the executive power. Our Anglo-Saxon ancestors, jealous in behalf of the common law, often invoked their protection, not merely against the arbitrary acts of the sovereign, but against his attempt to intro duce novel processes, similar to that adopted in this act, and borrowed from the same source. Brought to this country with other sacred traditions of ancient freedom, they were inserted in our American written constitutions as restraints on the legislative power in favor of individual rights. In this State the language of the restriction has received a well-settled judicial interpretation. It has been held to restrain the Legislature from itself usurping judicial power over life, liberty, or property, and from creating any new process for the forfeiture of these great rights which should substantially depart from the customary procedure of the common law. This established construction must have been familiar to the able and learned lawyers who shared in the discussion of this part of the constitution in the convention of 1846. In the exact words which had received such a construction, the clause was adopted by that body, and was ratified as the deliberate and permanent will of the people, expressed in the fundamental law of the State. In the same sense, it is now binding on their legislative agents and on the judicial tribunals. I am of opinion, therefore, that the prohibitory act, in the provisions which form its distinguishing characteristics are interwoven with its whole structure, and supply the means on which it relies to effect its pur pose is unconstitutional and void. Such legislation springs from a misconception of the proper sphere of government. It is no part of the duty of the State to SUMPTUARY LEGISLATION. 55 coerce the individual man except so far as his conduct may affect others not remotely and consequentially but by violating rights which legislation can recognize and undertake to protect. The op posite principle leaves no room for individual reason and conscience, trusts nothing to self-culture, and substitutes the wisdom of the Sen ate and Assembly for the plan of moral government ordained by- Providence. The whole progress of society consists in learning how to attain, by the independent action or voluntary association of indi viduals, those objects which are at first attempted only through the agency of government, and in lessening the sphere of legislation and enlarging that of the individual reason and conscience. Our Amer ican institutions have recognized this idea more completely than others, and the Democratic party has generally been the faithful guardian of its progressive development In most of the great practical questions of our time, it has opposed the interference of Government even for the best objects, and, because it was solicitous for those objects, has preferred to trust them to wiser, safer, and more efficient agencies. Devoted to the rights of our American in dustry, which is now beginning to fill the world with the renown of its achievements, it has refused to direct its application by pro hibitory or protective tariffs ; preferring that each man should judge how he can make his own labor most productive, and trusting for the aggregate result to those natural laws which enable every one of our million of city population to daily choose his food, and yet "furnish buyers for everything that has been provided beforehand. Claiming a good currency for the people, and well-regulated ex changes, it has discarded a national bank, and seeks to put these great interests under the guardianship of the laws of trade. Friendly to the modern machinery of travel and transport, which, by cheap ening the interchange of products of different soils and climates, has in effect added fertility to th e one and geniality to the other, it has opposed internal improvements by the General Government, and prohibited loans of State credit and money in aid of railroads. As serting the freedom of voluntary association, it has refused special charters, and established general laws of incorporation. On all these questions, which have largely occupied the public attention for a generation, because the Democratic party has favored the ends, it has rejected the means by which large parties and many good men have erroneously sought to promote them. To-day, while it is in favor of sobriety and good morals, it disowns a system of coercive 56 THE LIFE OF SAMUEL J. TILDEN. legislation which cannot produce them, but must create many seri ous evils which violates constitutional guarantees and sound prin ciples of legislation invades the rightful domain of the individual judgment and conscience and takes a step backward toward that barbarian age when the wages of labor, the prices of commodities, a man s food and clothing, were dictated to him by a government calling itself paternal. I need not add that in this conclusion, as well as in the general course of the Democratic party on these former occasions, I entirely concur. With great respect, gentlemen, I remain yours, etc., SAMUEL J. TILDEN. To Hon. JOHN TAYLOR and ANDREW KIRK, Esq It will be seen that this opinion covers the whole ground. It deals with prohibition as a question of law, a question of statesmanship, and a question of morals. The explicit, straight forward style of its author leaves no room to doubt his posi tion on the issue of sumptuary legislation. I submitted the letter not long ago to the most ultra-prohibitionist of my ac quaintance. He said : " I differ from every proposition con tained in that opinion. But if I were not going to vote for General Smith " (I hope it is unnecessary to explain that General Green Clay Smith, of Kentucky, is the prohibitionist candidate for President of the United States this year), " I would vote for Tilden. I have respect for an outspoken oppo nent of our cause, but those miserable politicians who profess to be the friends of prohibition, and who beguile away our votes and destroy our strength, are my utter detestation. Governor Tilden isn t with us, but he is the next best thing, he is an honest enemy." I do not know how many pro hibitionists share this opinion ; but I believe that Mr. Tilden s liberal views on the subject of sumptuary legislation will com mend him to the liberty-loving citizens of the United States. CHAPTER VIII. ME. T1LDEN AS A LAWYER THE FLAGG CASE. ME. TILDEN S reputation as a lawyer rests on a secure foundation. He won no marked triumphs in early life as an advocate ; he never sought to convince a jury against their own better judgment by the mere force of eloquence ; and he never gained a case by a quibble or a resort to sharp practice. His "success was the legitimate result of intelligent labor. To estimate his character or to understand his life it is necessary that the reader should follow him through some of the famous law cases with which he has been connected. And, first among these, the Flagg contested election case, in New York City, in 1856, claims attention. This case came up in the days of Know-nothingism, when a nondescript alliance of political elements styling itself the Native American party, and keeping its policy and member ship bound to the dictates of a secret conclave, had made a brilliant but short-lived success. The political principles of the Know-nothings were averse to the election of any but native Americans to public office. When inquiry was made of any of their number about their party policy the invariable evasion was, " I don t know," from which their opponents quickly manufactured the name by which they are known in political history. In the year 1855 the Know-nothings achieved a partial victory in the State of New York. They elected a Secretary of State by nearly 12,000 majority, five judges of the Supreme Court, and a strong minority in the Legislature. In the city of New York they had exerted themselves to their utmost to elect Giles, who had been nom- 58 THE LIFE OF SAMUEL J. TILDEN. inated for the office of Comptroller, and who was regarded as a strong candidate chiefly on account of his obscurity. Mr. Giles s opponent, the regular nominee of the Democratic party, was Azariah C. Flagg, whose long connection with the Albany Regency, and whose distinguished services as Comptroller of the State, have already been adverted to. Mr. Flagg was a life-long friend of Mr. Tilden s, and a follower of the same po litical school. When the election-returns were counted, it was found that Mr. Flagg had a small majority, the vote standing 20,313 for Flagg, and 20,134 for Giles. The seekers after profitable jobs from the public had counted with the utmost certainty upon Giles s election. They knew perfectly well that, if Mr. Flagg went into office, the fraudulent bills which they had presented would not be audited. They found the cheering prospect of a fortune dissipated by so trivial a matter as 179 votes. A defeat which came so close to victory was more than humiliating it was exasperating. They finally hit upon the idea of disputing the legality of Mr. Flagg s election. They resolved to continue the fight in court. The small Democratic majority seemed to Mr. Giles and his friends 10 afford opportunity for a contest. They accordingly began to prosecute a quo warranto to test Mr. Flagg s title to the office. The case came before Judge Emott, in the Supreme Court. In the Nineteenth Ward it was certified that the returns gave Mr. Flagg 316 votes and Mr. Giles 186. Mr. Giles s friends asserted that this vote was illegally recorded, as there had been a clerical error, the 316 votes having been credited to Mr. Flagg, when they should have been given for Mr. Giles, and the 186 were really deposited for Mr. Flagg. In proof of this, Mr. Giles s attorney produced one of the inspect ors of the election a trustworthy man, according to public repute who swore to the returns corresponding to the altered tally-sheets. Another inspector partially supported this tes timony, while it was proved by other evidence that the third MR. TILDEN AS A LAWYER THE FLAGG CASE. 59 inspector was intoxicated at the time the election-returns were made. A clerk of the poll was also produced, who sustained the foregoing testimony. Several other witnesses testified to being present when the result of the election was proclaimed, and made a memorandum of it in their note-books, which cor responded to the facts sworn to by the first election-inspector. Thus the contestant s attorney seemed to have secured all the testimony possible in the case, and to have made it useful only on his side ; while the defense was left without proof, or the advantage of weak testimony, when it came to cross- examination. To aggravate this condition of the testimony available in the case, it appeared that the tally of the regular votes had disappeared, or at least could not be produced in court, and so this had to be supplied by recollection and collateral tallies. The tally of split votes, which comprised three foolscap sheets, showed the original canvass of split votes and transfers from the tally of the regular vote, giving the aggregate and the number of votes each candidate had received. These split tallies and the transfers of the regular tally corroborated the testimony of the witnesses for the contestant, leaving the case destitute of the barest shadow of evidence upon which the defense might build an argument. Such was the situation when Mr, Tilden opened the defense for Mr. Flagg. He determined to employ the testimony of the prosecution for the defense. He compared the tallies and the transfers, and devised fr,om this comparison a means of reconstructing the regular tallies that were lost. His line of reasoning was this : There being twelve officers to vote for, whenever a regular candidate had received a vote on the regular ticket the other eleven must have received the same vote. With this fundamental idea he went through the com binations, the results of which appeared partially on the split tallies and the transfers. By means of these combinations, eighty-four in number, Mr. Tilden succeeded in reproducing the missing tallies. These results completely overthrew the 60 THE LIFE OF SAMUEL J. TILDEN. basis of the argument of the prosecution, and demonstrated that the testimony of their witnesses was based upon a for gery. Mr. Tilden produced printed copies of his reconstructed tallies, and went over them in thorough review before the court and the jury, until he had convinced them of the impos sibility of the transfers alleged in the returns, and had shown them that the case for the prosecution had been based upon a fabrication. In fifteen minutes after the case was given to the jury, they returned with a verdict in favor of Mr. Tilden s client. The original, bold, and sure principle by which Mr. Tilden won this case was set forth in his address to the court and jury : Tf, by a violent blow (lie said), I should break out the corner of tins table, split a piece off, the fractured and abraded fibres of the wood would be left in forms so peculiar that though all human in genuity might be employed to fashion a piece that would fit in the place from which the fragment had been broken, it could not be done. These things that are the work of God are so much superior in texture to anything we can do, that when they are broken up our ingenuity cannot restore them. There is doubtless some difficulty, occasionally, in interpreting this sort of evidence, or rather in ascertaining enough of the asso ciated facts to found your reasoning upon. And, when you think you have to meet a fabricated testimony, what you have to do is to study all the other facts and all their relations to the particular facts in question, so that you can spread out a full map of the fabricated tes timony in equal detail. If, after all this has been done, patiently and thoroughly, if the lie escape the ordeal, I shall believe that the God of justice and truth has not well constructed the work of his hands. The great issues at stake in this case made the success of such a bold but resolute course to rest altogether upon the courage and insight of the man who could plan and undertake it. If Mr. Tilden had lost the case, the supporters of Mr. Giles intended to secure the auditing of a vast amount of fraudulent bills which Mr. Flagg had refused to audit. The MR. TILDEN AS A LAWYER THE FLAGG CASE. 61 conspiracy to keep Mr. Flagg from the office of Comptroller was indicative of the corrupt practices that would have been imposed upon the government of the city had the case been gained for Mr. Giles. The ingenuity, courage, and strength, shown by Mr. Tilden in this case placed him at once at the height of legal distinc tion. Mr. Charles O Conor said of Mr. Tilden s participation in this case that it was the most remarkable intellectual effort he had ever witnessed. That Mr. Tilden rendered this ser vice for Mr. Flagg gratuitously, only enhances the value of the legal distinction which he gained in the case. CHAPTER IX. THE BUEDELL CASE. A CASE requiring* greater legal skill and a more profound insight into the relations of different phases of truth than the Flagg case was the famous Cunningham-Burdell case, in which Mr. Tilden participated as leading attorney for the contestants. The case at the time aroused great excitement, and, although, when Mr. Tilden and his colleagues plunged into the facts pertaining to it, there seemed to be an over whelming mass of testimony against them, the final adjudica tion of the affair was in accord with popular opinion. Dr. Harvey Burdell, a dentist living in his own house at No. 31 Bond Street, New York City, was murdered on the 1st of February, 1857. A coroner s inquest was held, and it was found that the deceased came to his death by murder, but committed by whom it was impossible to determine. The preparations for the burial were consummated, when, to the great surprise of all who had been interested or excited, a woman, up to that time supposed to be no more than a middle-aged, dashing widow, by the name of Cunningham, was sprung upon the startled, grief-stricken friends and rela tives as the wife of Dr. Burdell by a secret marriage. This surprise created some consternation, but soon resulted in a sober reaction that set measures on foot to repel the fond insinuations and wifely claims of Mrs. Cunningham. This woman, Emma Augusta Cunningham, was a buxom, well-preserved woman, in her thirty -fifth year, the mother of a large family, among whom were her two full-grown daugh ters, Helen and Augusta, who were principal witnesses in the THE BURDELL CASE. 63 trial which ensued. Mrs. Cunningham was a woman of doubt ful friendships, giv-en to intrigues and deceits, but adroit and resolute withal, so that, once given the proper invitation, she could easily cast so strong and fine a net about the victim of her charms that he would fall a prey to her wishes. She was considered rich and attractive, and was well received in cer tain society, for the graces of her person and the agreeable- ness of her conversation. Her moral character was more for tunate in public esteem than in actual conduct ; but, whatever her amours while a respectable widow and the mother of two lovely daughters old enough to go into society, they were never offensively open, and appear to have been so secret that they never afforded any delight to gossips or eavesdroppers. Dr. Burdell was a man between forty and fifty years of age, a bachelor, considered rich, and proud of such a reputa tion. He seems to have been a man of indecisive purpose, unfortunate in his pledges and uncertain in their fulfillment, not particularly immaculate in his social tendencies, and yet well received in society, not as a hypocrite, but simply as a man of peculiarities and pardonable eccentricities. He was anxious to gain money, and niggardly in his efforts to hoard it. Dr. Burdell s house had been occupied by a Mrs. Jones, who was the landlady of a genteel boarding-house. Mrs. Cun ningham took Mrs. Jones s place and made the usual agree ment of a tenant with a landlord, and rented a portion of his house at eight hundred.. dollars a year. Their relations to all outward observation were always those of a bachelor and a widow, a landlord and a tenant. No one had the slight est ground for suspecting that they were man and wife until one was murdered and the other put on the weeds and habili ments of deep affliction. Mr. Tilden s connection with the affair was after the trial of Mrs. Cunningham and her daughters for the murder of Dr. Burdell. They were found " not guilty " upon a lack of proof against them, rather than for plausible proof that they could 64 THE LIFE OF SAMUEL J. TILDEX. be innocent. When Mr. Tilden assumed the defense of Dr. BurdeH s relations and next of kin to resist Mrs. Cunning ham s application for letters of administration and her widow s third, the premises were full of doubt. All the affirmative testimony, by the minister who officiated at the marriage ceremony, the marriage certificate, the daughter of Mrs. Cun ningham, and the servants of the house, seemed to be invin cible. The negative could do but little else than stagger un der the burden of proof. They had no testimony that could be adduced to any effect. The only issue of the matter seemed to be a futile effort to repudiate the claims of Mrs. Cunningham, and then witness her unimpeded triumph at law and enjoyment of the property to which her title at best was darkly clouded. A great lawyer is not only learned in the law, so that when the facts are laid before him he may take up the dry, tough problem, putting this fact with that, multiplying and dividing as the law lays down the rule, and demonstrating with mathematical precision the legal conclusion of which the facts are the premises ; but the great lawyer is able also to create, to make order where only chaos has reigned hitherto, to lay down the principles that prove the symmetry and har mony of truth, to be himself the tribunal which puts good with good, true with true, and the false with false. Such a lawyer is Mr. Tilden. His plan of action in the Cunningham- Burdell suit was one that is rarely adopted by the legal pro fession. The circumstantial probabilities of the whole matter indicated to his own mind that Mrs. Cunningham was not only not the wife of Dr. Burdell by any marriage, public or private, but that she was guilty of his murder. This opinion he vent ured to express in his conduct of the defense. Such was the corroborative appearance of the testimony for the claimant, that there was no hope for any successful effort to break it down by negative testimony alone there was none upon the vital points of the case. There were really the appearance and conviction of every proof necessary to establish a case for the THE BURDELL CASE. 65 claimant. The only way to defeat her was to strike at the vulnerable points of her evidence, and throw her assertions into confusion. Mr. Tilden determined to make a complete and thorough concordance of every statement and fact intro duced into the case, and this he did, relying upon the affinity between different fragments of truth. With extraordinary skill and deftness he traced lines of testimony into the deep est, most complicated, and perplexed phases of fabrication, and gradually, with a lawyer s patience, unwove the texture of falsehood and pretense, until the truth came to light, and the case was won for the defense. Rev. Uriah Marvin was so positive that the man whom he married to Mrs. Cunningham, at his residence, No. 732 Green wich Street, in the evening of October 28, 1856, and the body of Dr. Burdell were identical, that he gave his testimony several times substantially unmodified, and compelled belief in the truth of his statements. Miss Augusta Cunningham, who was the only witness of the alleged marriage, was evi dently most innocently sincere in the belief that her mother had been married secretly to Dr. Burdell. To her there was not a single question of doubt. All the details of the wed ding gloves, ring, side-whiskers, conversation, dress, under clothes, demeanor, conduct, and the innumerable other inci dentals of the occasion were indelibly fixed in her mind, and her testimony under cross-examination found her recol lection of them impregnable. Other trustworthy witnesses testified to seeing Dr. Burdell and two ladies, presumably Mrs. Cunningham and her daughter Augusta, on the streets the night of the alleged marriage, and that they were ap parently destined for Greenwich Street ; that both the doctor and Mrs. Cunningham mentioned their marriage to friends under promise of secrecy ; that he was kind to her at times, and again rude ; that they cohabited as man and wife ; in tended to go to Europe the following summer; and other points, more or less essential. In the face of this testimony Mr. Tilden carefully picked (56 THE LIFE OF SAMUEL J. TILDEN. out and assorted the various facts given in evidence, and con structed from them a general theory of what the actual rela tions of these facts were. From this it was found that a personation was made of Dr. Burdell, and that this persona tion, in company with the daughter Augusta, was party to the marriage performed by Rev. Uriat Marvin ; that Dr. Bur- dell was in Herkimer, N. Y., on the 27th of October, the day before the wedding, when, according to the claimant s testi mony, he was in New York City, and on the evening of the 28th was in the city of Brooklyn ; that in the three months subsequent to the alleged marriage Dr. Burdell renewed abandoned lawsuits against Mrs. Cunningham with fresh energy, declaring that she must get out of his house, for she was an indecent, unprincipled woman, and he would shelter her no longer; and that he made all necessary writings to lease his house to another woman. One hundred and fifty-two witnesses were examined, and, when the testimony had all passed through Mr. Tilden s as similating process, there was not a shred of presumption in favor of the claimant. Mr. Tilden began to sum up the argu ment of the case, at six in the evening, and continued till ten o clock; resumed on the following morning at ten, and con cluded at two in the afternoon. The surrogate s decision, which was a most careful and just one, it is hardly required to say, gave Mr. Tilden s clients the case, and Mrs. Cunning ham not only did not receive letters of administration, but lost every pretext to widowhood under the name of Burdell. No law-case with which Mr. Tilden has been associated ever brought his name so prominently before the public as this. The intense interest which was felt in the trial of Mrs. Cunningham, and the mystery which enveloped the Bond Street tragedy, combined to make the lawyers engaged in the case known throughout the country. Mr. Tilden s success gave rise to the belief that, had he conducted the case for the prosecution when Mrs. Cunningham was under indictment for murder, she would undoubtedly have been convicted. It is at THE BURDELL CASE. 67 least certain that none of Mr. Tilden s previous cases had called for the exercise of such rare metaphysical powers, or for such deep penetration of character. His defense was a creation. Yet while he exhibited transcendent professional ability, he did not win this case, nor has he ever won any of the great cases with which his name has since been associated, merely as a lawyer. It is because his professional endowments represent such a limited proportion of his greatness, that the public seldom thinks of him as a lawyer. One who knows him says : Mr. Tilden won these suits by the happy combination and exer cise of qualities which are not the exclusive or peculiar property of any particular profession; he is a political economist; he is a logi cian ; he is a politician ; he is a man of the world. He is, besides, a great lawyer. In a trial, therefore, Mr. Tilden brings many resources which are far from common, even among the most eminent lawyers. It was this superiority and breadth of development which early in his professional career made his office tbe favorite resort of large numbers of the great railway corporations of the country, which for some years immediately preceding the war were beset with the trou bles consequent upon a management more or less corrupt or indis creet. His success in all these great cases was due, not so much to a knowledge and appreciation of the principles of law, as to his famil iarity with those broader principles of the science of government, legislation, and finance, of which he is a master. He dealt with all such questions like a statesman rather than like a lawyer. In no case that specially engaged his attention did he fail to show originality in his treatment, and a fertility of resource which rendered him meas urably independent of precedents and authorities. CHAPTER X. THE Flagg case and the Burdell-Cunningham case attest Mr. Tildeti s greatness as a lawyer of mathematical precision and deep penetration of character. Another great case re mains to show his faith in the alliance and unity of all truth ; that of the Delaware & Hudson Canal Company against the Pennsylvania Coal Company. The Pennsylvania Coal Company had a contract with the Delaware & Hudson Canal Company to transport their coal on the canal of the latter company. Among other things in the agreement it was provided by the Canal Company that the Coal Company should pay extra toll for the use of their canal, in case they should enlarge it and reduce the expense of transportation. The Canal Company in due time presented their claim for extra toll, which was met by the denial of the Coal Company that the enlargement of the canal had, in any measure, reduced the expense of transportation. The Canal Company insisted upon their right under the contract to an increase in tolls to correspond to the increased facility of transportation. The Coal Company remained fixed in the opinion that the enlargement of the canal had done them no good, and refused to accept the claim. After a long corre spondence that yielded no advantage or comfort to either side of the controversy, the Canal Company brought suit against the Coal Company. Mr. Tilden was retained for the defense, and the suit was tried before Judge Hogeboom of the Su preme Court, sitting as referee. The plaintiffs presented an THE PENNSYLVANIA COAL COMPANY S CASE. 69 encyclopaedia of evidence that occupied the attorneys and the judge more than two months in hearing. The point at issue in the trial was, whether the enlarge ment of the canal had rendered transportation cheaper than it had been prior to its enlargement. This question involved a comparison of the efficiency of the enlarged canal and the smaller one previous to the enlargement, and the settlement of the greater economy of one or the other. The many com plex questions of canal transportation, that harass all calcula tion upon the subject, abounded in this case. The variety and sizes of coals, the different amount of burden, the lading and unlading, the wash of the canal, the amount of water such questions confused the principle and facts of the case, and called forth a host of witnesses. Mr. Tilden s plan of action in the case took court and counsel by surprise, and demolished the testimony of the plain tiffs. It was simple enough in the idea, but unheard of in practice. He took careful statistics of a single trip on the canal as an integer by which to test the claims of the plain tiffs. It required a resolute and courageous man to undertake such a course, for it involved a great outlay of time and money on the part of the defense in a venture that would have been utterly lost if it had demonstrated the validity of the plain tiffs claim as effectually as it did the soundness of the defend ants denial. To more fully explain the theory and practice of this course, a passage from Mr. Tilden s recapitulation is given : At quite a late stage, comparatively, in this case, when I inter vened and undertook to ascertain the relative time of the trip, I did, as I always would, if possible, in such a case I endeavored to sim plify the controversy by applying a test which made all this part and many other parts of the discussion unnecessary. I took a simple integer with which to compare the time of the trip upon the old canal and the time of a trip upon the enlarged canal. The number of trips a boat would make during a season of navigation was sub ject to be varied by causes affecting the length of the seasons by 70 THE LIFE OF SAMUEL J. TILDEN. the question whether navigation was for 179, or 185, or any other number of days. It was also subject to be affected by the question whether the boat was all the season in use upon the canal, or was part of the season running upon the river. It was subject to other elements of disturbance and irregularity. I discarded it and took a single trip as the integer, and made my computations, as later in the day I shall endeavor to show your honor, upon the time of the trip considered singly causing to be examined and computed every trip made by the plaintiffs boats in a period of four years upon the old canal, and a period of four years upon the enlarged canal, every trip of which the books of the plaintiffs give a complete record and from them deduced an average time which I computed as the time of a single trip and made my integer. I was therefore enabled to dis miss altogether from my investigation the question whether this par ticular canal-boat No. 1 was upon the canal the whole season, or six months, or three months, or one month, or for how long a period it was upon the river. I got as my result what that boat did while and whenever it was actually upon the canal. It may have been unfortunate that this mode of treating the question did not receive earlier and more general attention ; for the habit formed of talking about the small number of trips made by the boats on the enlarged canal as resulting from the employment of the boat for certain days, or certain parts of the season, upon the river and not upon the canal, has survived all necessity for the discussion of any such facts. I advised our clients to tabulate and ascertain the time of the trips of all the boats during the entire period between the notifica tion of the completion of the enlargement and the commencement of this suit, taking the navigation seasons in which these events hap pened as complete seasons, and having a fraction before and after these two dates, and to make a similar tabulation in respect to the boats on the small canal for an equal period. It certainly took all the influence I had and pretty nearly ex hausted it to get this done, because it was a pretty large job. You have, sir, in these tables equal to at least twelve years of the labor of a single man. You can read and perceive results here, in five minutes, which, if the whole thirty-two volumes of the plaintiffs books were brought into court, and your honor should spend the next twelve years in examining them, you would scarcely discover. THE PENNSYLVANIA COAL COMPANY S CASE. 71 That was a laborious and costly process. Perhaps it might appear now to be unnecessary. It was intended to be decisive. It is, I think, decisive. I remember an anecdote which ex-President Van Buren once told me of John Randolph. Somebody was speaking to him in a com plimentary vein in reference to a debate in the House of Represent atives, and told him that a speech of his had not been answered. " Answered, sir ! " said he ; " it was not made to be answered." And so, sir, these tables were not made to be confuted. They are made according to the best process of scientific analysis, proved step by step from the records of the plaintiffs themselves, and are introduced here in strict conformity to the rules of evidence. They will establish and do establish the proposition they were in tended to determine when I did not know, and nobody knew, what the result of the investigation would be. Never, sir, anywhere, or on any other occasion, was there such a body of evidence upon any such question involved in litigation. Mr. Tilden established from these tables the details of transportation on the Delaware & Hudson Canal Company s canal. Among them the most important was that of the dura tion of a single trip, and of the length of the boating season. These he fixed beyond the possibility of" doubt, from the books and tables of the Canal Company itself. The principle at stake in the premises of the case being established, he de duced the intermediate chain of reasoning. He showed that the round trip on the enlarged canal took forty per cent, more time than the small boats on the unenlarged canal, and that, by diminishing the whole amount of labor during a given time, the real cost of transportation was enhanced. This proved that the Coal Company, instead of reaping an advan tage from the enlargement of the canal, had suffered loss. The verdict was accordingly rendered in favor of the Pennsylvania Coal Company. The amount at stake in the trial was no small one. The Canal Company claimed twenty cents a ton on^an annual transportation of six hundred thousand tons a year for nearly ten years, and a royalty of the same amount per ton annually 72 THE LIFE OF SAMUEL J. TILDEN. for the future. The claim would have been a disastrous one to the Coal Company if it had been sustained, and it thrust the crisis of their business career entirely upon their ability to prove an intricate and difficult proposition. The course of action resorted to by Mr. Tilden saved them from disaster, and established justice in the controversy. Mr. Tilden s success in this case, as in those already narrated, was the result of his faith in the almost mathematical consistency of truth and his insight into its relations, and courage in planting himself and his cause upon its steadfastness. CHAPTER XL THE TEHEE HAUTE, ALTON & ST. LOUIS RAILROAD CASE. Mr. Tilden s long and extensive law-practice it was his rare good fortune to gain and retain the confidence of every person who became his client. Certain rules gov erned his professional life. He never took a fee which his client was unable or unwilling to pay ; he never took a con tingent fee that is, a fee depending on the amount which he might recover ; he never sued a client for "services rendered. It may be truthfully added that in almost all cases his clients pronounced his fees too small, and, in more than one instance, they urged him to accept more than he had charged a thing which he, being a pensioner on nobody s bounty, invariably refused to do. It is safe to say that no other lawyer in the United States possesses a cleaner and purer professional record than Mr. Tilden. Yet, strangely enough, almost the only personal charge preferred against him, in the heat of an exciting can vass, rests on the perversion of a case in which he was retained as a lawyer the Terre Haute, Alton & St. Louis Railroad case. His conduct of that case was as honorable and honest as the most exacting critic could desire. Nay, more, in his dealings with that road he displayed a spirit of generosity, of self-sacrifice, of consideration for the welfare of others, which is not often fojmd among those trained to strict professional rules. But let the whole history of the case be told, and the reader may be left to judge whether or not Mr. Tilden requires any defense at the hands of his friends. In 1859, when Mr. Tilden was practising law in the city 4 7^ THE LIFE OF SAMUEL J. TILDEN. of New York, very many insolvent corporations sought his services in the confident belief that he could evolve order out of the chaos into which mismanagement had hurled them. Among these insolvent corporations was the Terre Haute, Alton & St. Louis Railroad. A suit against Mr. Tilden and others was recently instituted by a company bearing the same name, but deriving its title from a different source, as will be seen by the following brief history . 1. Mr. Tilden was induced to take charge of the case in behalf of the first and second mortgage bondholders. These bondholders asso ciated themselves together for the protection of their own interests, and appointed a committee consisting of Robert Bayard, Charles Butler, Russell Sage, and Samuel J. Tilden. This committee was known as the " Purchasing Committee," because one* of the main objects of their appointment was to purchase the railroad at a fore closure sale. The objects of the association were defined in a written agreement which was printed, published, and freely distributed. All the first and second mortgage bondholders were invited to join the association, and all who sought admission were admitted. At this point it is to be observed that the committee were the agents of the bondholders who entered into the agreement, and of nobody else. In regard to all others they occupied the position of an adversary rather than of a representative. They were not agents of the remaining bondholders. They were not agents of the other cred itors or of the stockholders of the old company. Still less were they the agents of the present company, which was formed three years afterward, which they dealt with and which dealt with them as inde pendent and even adversary parties. The Purchasing Committee bought the railroad of the insolvent corporation at a mortgage sale under a decree of the Circuit Courts of the United States. They made the purchase in their individual capacity. They gave their individual obligations for the purchase- money and satisfied those obligations. They were bound by their contract to deliver to the bondholders who had Centered into the agreement certain new securities, which they delivered. They were bound to pay into court, for the benefit of bondholders who were not parties to the agreement, the cash to which these bondholders were entitled under the sale, which they did. The time within which bondholders could avail themselves of THE TERRE HAUTE, ALTON & ST. LOUIS RAILROAD. 75 the privileges of the agreement was limited by the agreement itself to a period of sixty days after May 1, 1861. At that time, and at the time of the sale, a large interest had not become parties to the agreement. But finding that those who had entered into it were to profit by it they applied for admission, and the purchasers in a spirit of the most liberal equity admitted them. They admitted some as late as the year 1868, seven years after the limitation had expired; they have never excluded any ; and even now a few of the bonds have never appeared. 2. The title of the present company of the Terre Haute, Alton & St. Louis Railroad is derived from a deed to them by the pur chasers in June, 1862, more than fourteen years ago. All the bonds and stock of the present company which ever came into the hands of the Purchasing Committee were delivered to them absolutely, in their own right, as the consideration for the railroad and property conveyed to the present company. This absolute delivery is recited and declared in the deed, and the deed is recorded in every county of Illinois and Indiana through which the road passes. Every class of securities issued by the road its first-mortgage bonds, its second- mortgage bonds, its preferred stock, and common stock contains a recital of the securities thus delivered. Moreover, every person to whom bonds or stocks were issued as to an original holder executed at the time of such delivery a formal ratification of this arrange ment, and a final settlement, and a full and absolute release to the Purchasing Committee. 3. The Purchasing Committee have never received any compen sation for their services except by such resulting surplus of assets as may remain after all settlements are completed and all liabilities against the committee are satisfied. Mr. Tilden was employed as Counsel of the first-mortgage bond holders, of the second-mortgage trustees, who were in actual pos session of the railroad, and for the receivers appointed by the Cir cuit Courts of the United States for Indiana and Illinois. His ser vices in these capacities occupied a large share of his time for three and a half years. He was engaged in many complicated and difficult negotiations with adverse parties. He made repeated journeys to the West, to Terre Haute, to Indianapolis, to Alton, to Springfield, and to St. Louis. He conducted the foreclosure suits in the Circuit Court of the United States for Indiana, and in the Circuit Court of the United States for the Southern District of Illinois ; obtained the 76 THE LIFE OF SAMUEL J. TILDEN. decrees of sale ; attended at Alton on the sale ; argued at Springfield a motion for an injunction to stop the sale ; obtained its dissolution, and completed the sale. He also drew the laws necessary to be passed in Indiana and Illinois, to carry out the objects of the fore closure. Mr. Tilden also procured from the United States courts in Indiana and Illinois, whither he went for that purpose, decrees clothing the trustees in possession with the character and rights of receivers. These services extended over a period of three years and a half, and occupied a large part of Mr. Tilden s time. He received from the first-mortgage bondholders $10,000, and from the second-mort gage bondholders $10,000. Considering the extent of this profes sional work the compensation was extremely low. The Purchasing Committee assumed under a written contract a very laborious, troublesome, and onerous work. They performed it so satisfactorily that not one of the bondholders for whom they acted has ever found fault with them, but, on the contrary, all have united in expressions of gratitude. They found the first-mortgage bonds on the road of the Terre Haute, Alton & St. Louis Eailroad Company selling at about forty-five cents upon the dollar of their principal, with twenty-one to thirty-odd per cent, of overdue interest, and they delivered, in exchange, bonds then worth nearly par of principal and interest, and now commanding a premium. The second-mortgage bonds were sold at eighteen cents on their par value bearing a larger amount- of overdue interest than their market price. The securities issued in exchange (funding the overdue interest) would, at their present market value, pay more than 125 on the par of the old bonds. They found the inferior securities, discredited by years of default, selling at a small fraction of the value of those they delivered in ex change, and at not more than a quarter or an eighth of what these new securities now bring, notwithstanding the disastrous competition of new lines, to which the company has been so peculiarly sub jected, and notwithstanding the present unusual depression in rail road investments. They admitted to the equal benefit of their agreement those who, through fear or ignorance, had failed to avail themselves of the privilege within the prescribed time. They took an insolvent road and raised its value from less than two millions to more than six millions. If there be any surplus in their hands it has resulted from their care, skill, and wisdom, in the adminis tration of their assets through a series of years. It could never THE TERRE HAUTE, ALTON & ST. LOUIS RAILROAD. 77 have been expected that they would incur such large personal lia bility, risk, and trouble, without some indemnity and some compen sation, and they had a perfect right, so that they kept their obliga tions to everybody, to allow compensation to themselves in formal manner, or to use or apply the resulting balance as a compensation. Whatever that surplus may be, is a matter between the committee and the parties for whom they acted, under written agreements. The adversary party, to whom the committee sold the property and took securities in payment, fourteen years ago, has no shadow of claim in law, equity, or good morals, to those remaining assets, or to an account for their use or disposal. It is excluded from any such claim by its own repeated and solemn acts and agreements, by its for mal deeds and its public records. It remains to be told that during eleven years from 1862 to 1873 Mr. Tilden acted as counsel for the present corpora tion of the Terre Haute, Alton & St. Louis Railroad. These services were of the very greatest value, for on more than one occasion they saved the road from insolvency. But Mr. Tilden never asked nor received a dollar for all the work he performed for the company during those eleven years. If I have made my readers understand this case, they will find no difficulty in disposing of any other calumnies which may be heaped upon Mr. Tilden s head in connection with his professional career. A week before his nomination for the presidency he showed to a friend three letters which he had received within a few days, each from a different person, but all alike in sub stance. They were demands for money, and each demand was accompanied with a threat to commence a suit at law if the money was not forthcoming, on some alleged wrong in directly sustained in cases in which Mr. Tilden had been re tained on the other side. And all the threats were empha sized with the words, " You cannot afford to be sued at this time." " What shall I do with these letters ? " he asked. " Turn them over to the press for publication as specimen strikes. " 78 THE LIFE OF SAMUEL J. T.TLDEN. "No, no," said Mr. Tilden, half sadly. "Let the poor fellows go. If they were not strangers to me, they would know they could not frighten me ; and, if they are as poor as they say, I could not resist their appeals if they did not ap proach me in such a despicable way." CHAPTER XII. HIS POSITION DURING THE WAR. MR. TILDEX, although he had withdrawn himself from active participation in politics, was a close observer of events in 1860. He was not a delegate at Charleston, but he went to Baltimore as a delegate, striving in vain to avert the dis ruption of the Democratic party. After the election of Mr. Lincoln, and before the result was officially announced, South Carolina prepared to secede from the Union. The doctrine that a State had power to break its compact with the Federal Government was a doctrine which Mr. Tilden held in abhor rence. He had been trained in the school of Andrew Jack son. His earliest intellectual energy was directed against nullification, whereof secession was the ripened fruit. He had studied the question diligently, and his opinions were deeply fixed long before the crisis came. He knew that secession meant war, and he knew better than some hotter heads what war meant. He loved the Union, not with the narrow love of the sectionalist, but with the broad love of the patriot. He sought, therefore, to avert the impending calamity the calamity which a Republican statesman who stands to-day very high in the counsels of his party unfeel ingly denominated "a little bloodletting." Beyond the " little bloodletting " he saw the crimson tide swelling and surging, engulfing the best lives in the land and the treasure of the people. Peace on the basis of the Union, and on no other basis, was what he sought. During the winter of 1860- 61, he attended a meeting of the leading men of both parties in the city of New York to 80 THE LIFE OF SAMUEL J. TILDEN. consider what measures were necessary and practicable to avert an armed collision between what were then termed the free and the slave States. To the North he urged reconcilia tion and forbearance, appreciating as he did more clearly than most of those around him the fearful and disastrous conse quences of a civil war, whatever might prove its ultimate re sult. To the South he urged a deference to the will of the majority, and a respect for the provisions of the Federal Con stitution, within which they would be sure of adequate pro tection for themselves and for their property ; but he warned them that outside of the Constitution they could expect pro tection for neither. He was heard to warn an eminent Southern statesman that if the South expected Northern Democrats to hold the Government while they whipped the North it was mistaken ; if war came, Northern Democrats would support the Government. The actual outbreak of hostilities produced a deep feeling through all the North. Mr. Tilden met the event in no craven spirit. To a Republican who put the rather impudent question, " You are with us, ain t you ? " he answered, " I will go as far to sustain Abraham Lincoln as I would to sustain Andrew Jackson in his efforts to preserve the Union. * Immediately after Mr. Lincoln s first call for 75,000 men, a meeting was held at the house of General Dix, at which Mr. Tilden was present. He declared his belief that the Presi dent had made a mistake ; that instead of calling for 75,000 troops, he should have called for 500,000. They could have been more easily obtained in the first flush of patriotic excite ment than at any other time. One half of the soldiers should have been used for immediate service, and the other half put in camps of instruction for impending exigencies. The South, seeing what preparations for a gigantic war the North was making, would have hesitated before all was lost. The States in which a Union sentiment still existed would have been immediately reclaimed. The force of numbers would have overpowered the remainder. This was Mr. Tilden s HIS POSITION DURING THE WAR. 81 view of the matter in 1861, but his advice was not heeded then. Nevertheless, it was good advice. Mr. Tilden was present at the great war-meeting in Union Square, April, 18G1. He was told that his name would be used as one of the vice-presidents of the meeting, and con sented to its use. For some reason, best known to those who had the list in charge, it was omitted. Two days later he took part in a war-meeting held by the members of the bar. He contributed freely of his means toward defraying the ex penses of the regiments which were sent from the city. To one of those regiments he presented a flag on the occasion of its departure for the seat of war. During the spring and early summer of 1861 he made several journeys to Washing ton in behalf of the soldiers who sought his influence with the authorities. Mr. Chase, then Secretary of the Treasury, sent for Mr. Tilden in 1862, and sought his advice. What that advice was every reader might guess. He urged that the war might be carried on under a system of sound finance, which he did not doubt that the people would sustain if the Government would have the courage to propose it. What he said to Mr. Chase, in a more definite form he incorporated into his first annual message, as follows : Governments, in times of public danger, cannot be expected al ways to adhere to the maxims of economical science; the few who would firmly trust to the wisest policy will be often overborne by the advocates of popular expedients dictated by general alarm ; if the Federal Government had paid out Treasury notes, not made a legal tender, in its own transactions whenever it was convenient, and redeemed them by the proceeds of loans and taxes on their presen tation at a central point of commerce, and meanwhile had borrowed at the market rates for its bonds, secured by ample sinking-funds, founded on taxation, and had supplemented such loans by all neces sary taxes, the sacrifices would not have been half that required by the false system adopted ; perhaps the cost of the war would not have been half what it became. When Mr. Stanton was appointed to the War Depart- 82 THE LIFE OF SAMUEL J. TILDEN. ment, he, too, sought Mr. Tilden s advice. The two had been friends in other years, and the Secretary reposed great faith in Mr. Tilden s wisdom. He said to Stanton : You have no right to expect a great military genius to come to your assistance. They only appear once in two or three centuries. You will probably have to depend upon the average military talent of the country. Under such circumstances your only course is to avail yourself of your numerical strength, and your superior military resources resulting from your greater progress in industrial arts and your greater producing capacities. You must have reserves, and concentrate your forces on decisive points, and overwhelm your ad versaries by disproportionate numbers and reserves. A year later the Secretary told him that he constantly re gretted his inability to secure the adoption of Mr. Tilden s policy. In the summer of 1862 Mr. Tilden was in frequent com munication with Horatio Seymour. After the nomination of the latter to the office of Governor of New York, he spent considerable time at Mr. Tilden s house ; and it was after consultation with him that he prepared the famous speech delivered at the Academy of Music, in which was made a more urgent demand for the vigorous prosecution of the war than had before emanated from the Democracy. In 1864, to his own surprise, Mr. Tilden found himself elected a delegate to the Chicago Convention. He was named as a member of the Committee on Resolutions. In that committee he made a speech, of which the following is a brief synopsis : 1. Opposition to any declaration in favor of an armistice. He insisted that, from the nature of things, the Executive Government alone could be informed of the military situation at any given mo ment, or could appreciate the effect of a temporary cessation of arms at any given time. He, therefore, condemned any attempt to inter fere with the Administration, or even to advise it on a question of that nature. 2. He insisted that the adjustment of the controversy pending HIS POSITION DURING THE WAR. 83 between the North and the South, on any other basis than the resto ration of the Union, was manifestly impossible ; that the questions about which parties differed, and which had led to a collision, might be compromised, postponed, or left "without any affirmative action while all the parties to the controversy remained in the Union ; but, the moment either went out of the Union, the question of difference became immediately and inevitably incapable of solution, except by war. He illustrated this truth by reference to the Territories. Many expedients in regard to them to avert or postpone controversy were possible inside the Union ; nothing but complete, absolute, and final disposal of them was possible in case of separation. Questions of still greater difficulty which would not arise within the Union had been created by separation, and never could be solved but by the dread arbitrament of war. He, therefore, maintained, if we could not live together peacefully in the Union, war was the only alterna tive. The resolution (always misquoted by our Republican friends), in which reference is made to the four years failure to restore the Union by the experiment of war, did not please Mr. Tilden, and he fought it in the committee to the end. Finding his protest unavailing, he sent a message to Gen eral McClellan, the nominee for President, advising him to kick that plank of the platform from under his feet, which General McClellan did, I have passed as briefly as possible over these events. Eleven years have elapsed since the war closed. The deep scars are healing, and the sad memories are passing away. The desire for reconciliation and brotherhood grows apace. It was for this that Sumner pleaded, Greeley died, and Chase labored, and many other brave Republicans dared the jeers of the coward crowd, who sought to fill their purses or gratify their unhallowed ambition, by raking in the ashes of burned-out passions for embers of the old strife which might be stirred to flame. Northerner and Southerner, Federalist and Confederate, we are one people to-day, and no good can come from reviving reminiscences of the evil years when we stood divided by war s " bloody chasm." CHAPTER XIII. THE TAMMANY PJNG ITS MEMBERS. BEFOEE entering on that chapter in Mr. Tilden s life which describes the rise, progress, and overthrow of the Tweed con spiracy, it is desirable to sketch the characters of the men who constituted the " Ring." I think Tweed owed his success more to his physical than to his mental resources. His bulky figure conveyed at first sight an impression of fat weakness, of flabbiness, which im pression was modified by his firm, swift gait, and altogether dissipated by his keen, piercing eyes, his sharp nose, and his implacable lips. He never looked or acted as if he were tired. He would come up as fresh at midnight as at noon. At his office in Duane Street, a private office where he w r as seldom at home to politicians, and where a dingy sign bore the in scription " William M. Tweed, Attorney-at-law," he might be found often when the crowd thought he was out of town. There sometimes word would be brought to him that trouble was brewing at a distant point, somewhere, perhaps, in the Nineteenth or Twenty-second W^rd, miles away from his office. Within an hour or two he was at the scene of the alleged re volt against his power. His sinister smile, his shrewd glance, his omnipresence frightened and subdued the enemies who were of his own class. His untiring activity enabled him to learn their plans, to cope with them successfully, to frustrate and tame them. If he had been a lazy man he could not have been " the Boss." That title, " the Boss," was the one which tickled his large and low vanity most perfectly. On the day that he returned to Albany from New York in the THE TAMMANY "RING" ITS MEMBERS. 85 spring of 1870, after the Young Democracy had been barred out of Tammany Hall, he stood talking in the corridor of the Capitol to a knot of politicians. He grew excited, and, raising his brawny right arm high above his head, he shouted, " By I ll show them that the Boss still lives!" With his cape-overcoat and theatrical posture, he looked like a gro tesque caricature on an old Roman senator. But those who saw and heard him felt the irresistible force of the man s phys ical power, which like faith may remove mountains or hand cuffs. Tweed entered politics through the engine-house. His position as foreman of "Big Six," a company of the old Volunteer Fire Department, brought into full play the strong points of his character, and enabled him to exert an influence on his immediate associates and neighbors. He utilized his popularity by securing an election to the Board of Aldermen in 1851. At that time he was only twenty-nine years old. The next year he was elected to Congress, but the office on the whole was distasteful to him. He was too thoroughly iden tified with New York City to find any pleasure in Washington. While serving as representative, he held on to his place as alderman, and was also elected school commissioner. He had learned the trade of a chair-maker, but abandoned it for that of a " statesman," which he declared was his occupation when he entered Blackwell s Island. In 1857 he took his seat as supervisor, a place which he never abandoned till the "Ring" was overthrown. Up to this time it is only fair to assume that he did not mean to get rich by stealing, that he was as honest as the average politician, honester, perhaps, than those Christian statesmen of Credit Mobilier memory whose wrecked reputations cumber the coast of our political sea. In 1861 he received the Tammany nomination for sheriff, and was defeated. He threw into the canvass every cent that he possessed. He used to say that he spent a hundred thousand dollars, but he probably exaggerated the amount. He ascribed his defeat not to his lack of character, ability, or popularity what beaten 86 THE LIFE OF SAMUEL J. TILDEN. candidate ever did ? but to the treachery of pretended friends* He felt withal that he had a grudge to gratify against the com munity which had preferred another to him. During that winter of 1861- 62 Tweed found it difficult to pay his rent and grocer s bill. It was then that he resolved to get rich, honestly or dishonestly. He was indifferent as to the means, but clear as to the end. It was about this time that he re ceived his appointment as deputy street commissioner. The next five years of his life were devoted to working up his local strength and to lining his purse. In 1867 he was elected to the State Senate by a majority so large that it was hardly considered worth while to count the votes of his opponent, and perhaps they were not counted ! Tweed appreciated the value of combinations. He knew his own weak points ; his ignorance of books and of law, his quick temper, and his in clination to boast. He sought the cooperation of a man who differed essentially from him in all these respects. That man was Peter B. Sweeney, a well-read and well-bred lawyer. Sweeney had been District Attorney of New York, and was chamberlain (custodian of the funds) of the city when he entered into league with Tweed. He possessed a good prop erty before the " Ring " operations. began, and he did not want to endanger that property by violating the law. He was a rare bird among the politicians. He did not cultivate the rabble, nor appear in the character of a hale fellow well met with anybody. He walked the streets looking straight in front of him, turning neither to the right nor to the left, and seldom recognizing those whom he knew. In the caricatures which flooded the country after the overthrow of the " Ring," Sweeney appeared to the poorest advantage of any of the conspirators. His low forehead, his overhanging eyebrows, and his thick lips, could easily be tortured into a villainous look. But he was in reality the most quiet, unobtrusive, and cultured man in the " Ring." He was a ready writer, with a keen and usually correct appreciation of political problems, and he was a safe counselor on subjects not affecting his personal interests. THE TAMMANY "RING" ITS MEMBERS. 87 The dependents of the " Ring " were always on terms of easy familiarity with Tweed, but never with the " Squire," as they called Sweeney. They credited him with greater knowledge than he possessed and his acquirements were of no mean order and held him in respect approaching awe. They be lieved that he knew their inmost secrets, and they were not far out of the way in that. An incident may be given to illustrate his character : On one of the last nights of the session of 1869, a bill passed the Legislature incorporating the Twenty-third Street Railroad. The persons who were opposing the measure, finding themselves beaten, hired one of the engrossing clerks to destroy the bill before it reached the Executive Chamber. Their idea was that the Legislature would adjourn before the loss was discovered, and that no copy of the act could be legally substituted for the original. Fifteen minutes after this sharp game was played, Peter B. Sweeney came into the room where the engrossing clerks were at work, and, walking straight up to the man who had destroyed the bill, he said "in a subdued but emphatic tone : " I came to see about the Twenty-third Street Railroad Bill. It was placed in your hands this evening after it passed the Legislature, and you burned it. You received dollars " (naming the exact amount), " from " (naming the man). " Now, within fifteen minutes I want that bill reengrossed. I will be in after it. You understand ? " The startled engrosser understood, and the bill was ready within the allotted time. The third member of the " Ring " was Richard B. Connolly, an Irishman by birth and a skeptic in religion. He was the only adopted citizen in the famous quartet, and he had lived from his youth in Philadelphia and New York, learning the ways of the natives. He was a good book-keeper, but was otherwise an ignorant man. In 1866 he was nominated for Comptroller on the Tammany ticket, and was elected. He had been long enough out of politics (serving as a clerk in a bank) to acquire an air of quasi respectability. Pending the 88 THE LIFE OF SAMUEL J. TILDEN. canvass his old sobriquet of " Slippery Dick " was revived, whereupon he wrote a most plausible note to the newspapers setting forth that there must be some mistake in the minds of the editors as to his identity ; that he was not " Slippery Dick," but a hard-working and faithful bank-officer, a stranger to politics, etc., etc. He backed his assertions with a recom mendation signed by a number of leading citizens who always seemed to hold themselves in readiness to subscribe to any paper which was presented to them. Connolly affected a full suit of black broadcloth, wore little jewelry, and with his close-shaven face, his high, narrow forehead, his sandy-gray hair, and his studied deportment, he passed, as far as personal appearance went, for a model figure of a financier. He was a timid man, but greedy. His timidity amused his confederates, who really believed that there was not power enough in the State to shake their hold on the city ; but his greed exasper ated them, for they were greedy also, and they claimed that he did not " put up " his share toward satisfying the army of " strikers " who served as satellites to the " Ring." Connolly is credited with inventing that quadruple entry-system of book-keeping, whereby stupendous frauds were temporarily concealed from public view. He contributed to the "Ring" an abundance of low cunning, and a mannerism which passed for dignity among certain eminently respectable tax-payers. Sweeney furnished the brains and the requisite force of character. Tweed supplied the muscle, the audacity, and the ability, to control large bodies of men by bringing himself into direct contact with them. But the combination needed a figure-head a man willing to accept in preference to money such honors as the others had to offer a nimble-witted man. They found such in the person of Mr. A. Oakey Hall. Tweed never feared the Republican party. In the New York City elections he wanted it to keep up its organization and run its regular candidates, and he contributed more than anybody else toward paying its expenses. He did not fear the Democracy of the rural regions, for he made it a point THE TAMMANY "RING" ITS MEMBERS. 89 seldom to interfere in the State politics .in an offensive way. He did not greatly fear the newspapers, for he trusted to the ignorance of some, and to the cupidity of others. The one power that he feared above all others was Samuel J. Tilden. The cordiality of his hatred toward Mr. Tilden is perfectly well known to every man who knew Tweed. He avoided him when he could, but vented his wrath on him in private and public places. To a friend of Governor Seymour Tweed said, one day, in the height of his evil power, " What does Horatio Seymour want?" It was mildly suggested that Horatio Seymour didn t want anything. " Well, then, what makes him twin with old Sam Tilden ? " asked Tweed. In reply, it was hinted that Seymour and Tilden were friends of long standing, and that they had many opinions in common. Finally, the question was propounded, l< What does Tilden want ? " Tweed, who was standing at the time in the large hall of the Delavan House, in Albany, answered it in the fol lowing comprehensive style : " Sam Tilden wants to overthrow Tammany Hall. He wants to drive me out of politics. He wants to stop the pick ings, starve out the boys, and run the government of the city as if twas a blanked little country store up in New Lebanon. He wants to bring the hay-loft and cheese-press down to the city, and crush out the machine. He wants to get a crowd of canting reformers in the Legislature, who will talk about the centrifugal force of the Government, and cut down the tax-levy below a living rate; "and then, when he gets every thing all fixed to suit him, he wants to go to the United States Senate." This was Tweed s opinion of Tilden in 1869. His hatred of him grew mtenser after his opposition to the charter of 1870. It is alleged that the Tammany " Ring " perpetrated frauds in the election of 1868, and it is vaguely charged that, because Mr. Tilden was chairman of the State Committee, he must have been a party to these frauds. But let us look at the 90 THE LIFE OF SAMOEL J. TILDEN. facts. Mr. Tilden, as chairman of the State Committee, had no more to do with the election in the city of New York than he had with the election in the city of Buffalo. If any frauds were perpetrated, they were perpetrated by the inspectors and canvassers of election, or with their connivance and con sent. These inspectors and canvassers were all appointed by the Republican Board of Police Commissioners, who derived their authority from the Republican Legislature in Albany. That Tweed exercised an undue influence over these commis sioners is quite probable ; but it is absolutely certain that Tilden possessed no power at all with them. It is true that, on the eve of the election, the " Ring " put forth a circular, of doubtful import, to which the name of Samuel J. Tilden was attached. But it was proved before the Republican Congressional In vestigating Committee, which visited New York in 1869, both by the confession of those who issued the circular, and by the positive testimony of Mr. Tilden himself, that the signature was a forgery; that it was used without his knowledge or consent, and that it. was repudiated by him as soon as it came to light. From 1869 to 1871 the Tweed " Ring" enjoyed a season of wicked prosperity. Tweed s policy was to buy off with offices all the powerful opponents whom he could not bully or bribe into submission. It was surprising how many men yielded to his threats or his persuasions. But he knew from the first that Mr. Tilden could not be bought off, or cajoled into acquiescence. This knowledge exasperated " the Boss." There was another man in a very different sphere of life whom Tweed also feared. That man was Mr. James O Brien, who had been Sheriff of New York from 1867 to 1870. O Brien had a larger personal following than any other city politician, with the possible exception of " the Big Judge," the late Michael Connolly. He distributed his money freely while he was Sheriff, and retired from an office said to be worth $100,000 a year as poor as he entered it. He then presented a claim against the city for $200,000. The " Ring " THE TAMMANY "RING" ITS MEMBERS. 91 Board of Audit refused to allow this claim. The question of its justice did not enter into their deliberations. The ma jority rejected the claim because, as they expressed it, they were not afraid of O Brien. He was out of office, and they felt secure against him. In this opinion Tweed did not con cur. He knew O Brien better than his associates, and was in favor of paying him, but he was overruled. O Brien, sus pecting that some big stealing would follow the adoption of the " Ring " charter, secured the services of a clerk in Comp troller Connolly s office, who made an accurate transcript of those bogus accounts by which an enormous sum of money was credited to the New Court-House. With this weapon in his hand, O Brien again demanded the payment of his claim, and was again refused. So confident were the con spirators of their strength, that they did not believe that the publication of the accounts would hurt them. But, when the publication was made, they discovered that it would have bten better for them if they had followed Tweed s advice and not exasperated O Brien. But the " Ring s " belief in its invincibility rested on some substantial ground. Usually, when it wanted a man, it stretched forth its hand and he came. For instance, near the close of the legislative session of 1869, three Republican Senators were needed to insure the passage of what was known as the New York tax levy. The bill was under debate until late in the evening, with the general understanding that "negotiations" were pending. Tweed, Connolly, and Sweeney were gathered in a room. To them came a well-known lobbyist. He said : " I think five horses apiece will draw em ; I know that six will." A "horse," in their parlance, meant $5,000. "Put on six horses," said Tweed. Within an hour the sum of $30,000 was paid to each of the three Senators, and they went back to the Senate-Chamber and voted for the tax levy. With such means at their command, and with such corruptible ele ments surrounding them, is it surprising that Tweed and his associates grew to have boundless faith in themselves ? 92 THE LIFE OF SAMUEL J. TILDEX. It would be difficult to describe the vulgar splendor which reigned in Albany, during the legislative session, when the " Ring " was at its height. Tweed s hotel bill, for a hundred days, was $13,000. His satellites fared almost as sumptu ously as he. Obsequious servants awaited the beck and nod of shoulder-strikers, resplendent in diamonds, who only lately dealt out bad whiskey from corner groceries. The " mem ber " was bowled up the State-House hill, to his easy duties, in a luxurious carriage drawn by swift horses. The member s next friend, and go-between, paid for all the champagne which the most insatiable taste could crave. If mere physi cal, sensual pleasure were the sum of human happiness (and they thought it was), these men ought to have been the hap piest creatures on earth. But a face haunted them the fact of a quiet, determined man, who always accomplished what he undertook ; whose principles were not for sale ; who held to the traditions of the fathers ; whose own life was blameless ; who could not be turned by threats, nor moved by promises. And the face that haunted them was the face of Samuel J. Tilden. CHAPTER XIV. MR. TTLDEN S HISTORY OF THE OVERTHROW OF THE TAM- MAXY "RING." THE account of the overthrow of the Tammany "Ring," which is herewith given, is from the pen of Mr. Tilden him self. It was written in January, 1873, and was called forth by a number of scurrilous articles which appeared in the columns of the New York Times. Mr. Tilden submitted his answer to these attacks to the Times^ but that journal re fused to publish what he had written. A more complete, comprehensive, and succinct account of the overthrow of the " Ring," it would be difficult to imagine. Although Mr. Til den explains, in his opening paragraph, that in replying to a newspaper article he departs from his established custom through life, it must nevertheless be counted a piece of good fortune that in this instance he broke from his rule. No one else could have told the story so well as he. It leaves no ground for doubt as to the position which Mr. Tilden occu pied toward Tweed and his confederates. Omitting some prefatory matter, the history of the over throw of the Tammany "Ring" is as follows : OEIGIN OF THE " BING." The Ring " had its origin in the Board of Supervisors. That body was created by an act passed in 1857, in connection with the charter of that year. The act provided that but six persons should be voted for by each elector and twelve should be chosen. In other words, the nominees of the Republican and Democratic party cau cuses should be elected. At the next session, the term was extended 94 THE LIFE OF SAMUEL J. TILDEN. to six years. So, we had a body, composed of six Republicans and six Democrats, to change a majority of which you must control the primaries of both the great national and State parties for four years in succession. Not an easy job, certainly ! The individual man has little enough of influence when you allow him some chance of deter mining between two parties, some possibility of converting the mi nority into a majority. This scheme took away that little. It also invited the managers of the primaries to do as badly as possible by removing all restraints. It is but just to say that the Democracy are not responsible for this sort of statesmanship, which considers the equal division of official emoluments more important than the administration of official trusts or the well-being of the governed. In the Assembly of 1857, of one hundred and twenty-eight members, the Democracy had but thirty-seven ; of thirty -two Senators, it had but four ; and had not the Governor. In the thirteen years, from 1857 to 1869, it never had a majority in the Senate ; in the Assembly but once ; and had the Governor but once up to 1869. The Republicans had the legisla tive power of the State in all that period, as they and their Whig pred ecessors had possessed it for the previous ten years. The " Ring " was doubly a " Ring." It was a ring between the six Republican and the six Democratic Supervisors. It soon grew to a ring between the Republican majority in Albany and the half-and- half Supervisors, and a few Democratic officials of this city. The very definition of a "Ring" is that it encircles enough influ ential men in the organization of each party to control the action of both party machines ; men who in public push to extremes the ab stract ideas of their respective parties, while they secretly join their hands in schemes for personal power and profit. The Republican partners had the superior power. They could create such institutions as the Board of Supervisors, and could abolish them at will. They could extinguish offices, and substitute others ; change the laws which fix their duration, functions, and responsibili ties, and nearly always could invoke the Executive power of removal. The Democratic members, who in some city offices represented the firm to the supposed prejudices of a local Democratic majority, were under the necessity of submitting to whatever terms the Albany leg islators imposed ; and, at length, found out by experience what they had not intellect to foresee that all real power was in Albany. They began to go there in person to share it. The lucrative city OVERTHROW OF THE TAMMANY "RING." 95 offices subordinate appointments, which each head of department could create at pleasure, with salaries, in his discretion, distributed among the friends of the legislators contracts money contributed by city officials, assessed on their subordinates, raised by jobs under the departments, and sometimes taken from the city treasury were the pabulum of corrupt influence which shaped and controlled all legislation. Every year the system grew worse as a governmental institution, and became more powerful and more corrupt. The exec utive departments gradually swallowed up all local powers, and them selves were mere deputies of legislators at Albany, on whom alone they were dependent. The mayor and Common Council ceased to have much legal authority and lost all practical influence. There was nobody to represent the people of the city there was no discussion- there was no publicity. Cunning and deceptive provisions of law- concocted in the secrecy of the departments, commissions and bu reausagreed upon in the lobbies at Albany, between the city officials and the legislators or their go-betweens appeared on the statute- book after every session. In this manner all institutions of govern ment, all taxation, all appropriations of money for our million of people, were formed. For many years there was no time when a vote at a city election would in any practical degree or manner, affect the city government. PEEIOD OF " KING " POWEE. The "Ring "became completely organized and matured on the 1st of January, 1869, when Mr. A. Oakey Hall became mayor. Mr. Connolly was Comptroller two years earlier. Its power had already become great, but was as nothing com pared with what it acquired on .the Jrth of April, 1870, bj^ an jict which was a mere legislative grant of the offices, giving the powers of local government to individuals of the " Ring " for long periods, and &eed from all accountability, as if their names had been men tioned as. grantees in the bill. Its duration was through 1869, 1870, and 1871, until its overthrow at the election of November, when it lost most of the Senators and Assemblymen from this city, and was shaken in its hold on the legis lative power of the State. It will be noticed that the first date in the list of county warrants bearing indications of fraud, published by the Times in the last of July, 1871, is January 11, 1869. Of the $11,250,000 embraced in 96 THE LIFE OF SAMUEL J. TILDEN. these accounts, $3,800,000 were in 1869 ; $880,000 in 1870, before April 5th; $6,250,000 in 1870, after that date ; and $323,000 in 1871.; The thorough investigation made by Mr. Taintor, at my instance, shows the aggregate vastly larger, but does not much alter the pro portions, except in 1871. The periods of power and plunder are co incident in time and magnitude. FORMATIVE PEEIOD. Even before the "Ring" came into organized existence the antag onism between those who afterward became its most leading mem bers and myself was sharply defined and public. It originated in no motive of a personal nature on my part, but in the incompatibility of their and my ideas of public duty. I distrusted them. They knew that they could not deceive or seduce me into any deviation from my principles of action. As early as 1863 some of them became deeply embittered, because, being summoned by Governor Seymour to a consultation about the Broadway Railroad bill, I advised him to veto it. Some years afterward I accepted the lead of the Democratic State organization. I did so with extreme reluctance, and only after hav ing in vain tried to place it in hands in which I could have confidence. I had seen the fearful decay of civic morals incident to the fluctuating values of paper-money and civil war. I had heard and believed that the influence of the Republican party organization had been habit ually sold in the lobbies sometimes in the guise of counsel-fees, and sometimes without any affectation of decency. I had left the Assem bly and Constitutional Convention in 1846, when corruption, in the legislative bodies of the State, was totally unknown, and now was convinced that it had become almost universal. I desired to save from degradation the great party whose principles and traditions were mine by inheritance and conviction, and to make it an instru ment of a reaction in the community which alone could save free government. Holding wearily the end of a rope, because I feared where it might go if I dropped it, I kept the State organization in absolute independence. I never took a favor of any sort from these men, or from any man I distrusted. I had not much power in the Legislature on questions which interested private cupidity, but in a State Convention, where the best men in society and business would go, because it was for but a day or two, those with whom I acted generally had the majority. OVERTHROW OF THE TAMMANY "RING." 97 1869. I had no more knowledge or grounds of suspicion of the frauds/\ W 1869, as they were discovered three years afterward, than the \ Times or the general public/ But I had no faith in the men who be came known as the "King," and they feared me. I had no personal animosity ; but I never conciliated them, and I never turned from what I thought right, to avoid a collision. The first impulse of their growing ambition and increased power was, to get- rid of me and possess themselves of the Democratic State organization. Their intrigue for this purpose was conceived and agreed upon in the winter, at Albany ; I knew it, but I did nothing till August. Then I accepted the issue ; and they were defeated by seven-eighths of the convention. The country papers of the Republi can party were full of the subject. The files of the Times show that the contest attracted public attention. That these men and I were not in accord was known wherever in the United States there was the least information on such subjects. This year was marked by the saturnalia of injunctions and re ceiverships. In April and May, in speeches in the Circuit Court of the United States, I denounced the orders granted by Barnard to Fisk against the Pacific Railroad Company, as perversions of the instruments of justice, bearing on their face bad faith. I had reason to believe that Tweed was a partner in this freebooting speculation; and his son was Barnard s receiver. The contest excited universal attention. My motive in taking the case, with great inconvenience to more im portant business, was the abhorrence I felt of the prostitution of judicial power which touched the rights and interests and honor of every man in the community ; and the consideration that, on being applied to by the company in its extremity, I had advised that the orders in Barnard s court, for the seven months previous, were nulli ties, and the acceptance of that advice seemed to impose on me the obligation to maintain it, as was done successfully. I declined retainers from Fisk in matters involving no scandal, but in which he had not my sympathy, after he had informed me that he had paid a counsel, during the year, many times the largest fee* I had ever received ; adding, u We don t want anybody else we want you." My open denunciations of the judicial abuses, so frequent at this time, and the general support I had received from the country dele- 5 98 THE LIFE OF SAMUEL J. TILDEN. gates, I have always believed to be the origin of tbe reaction by which, instead of a third subject for impeachment, Judge Brady was nominated. In December, I signed the call for the meeting at which the Bar Association was formed. At that meeting, on the first of February, 1870, upon being called on, I gave utterance to my unpremeditated thoughts, in words which stand, without any change, as they were reported in the official proceedings of that body. They were gen erally deemed to breathe a tone of defiant independence. Among those thoughts were these : If the bar is to become merely a mode of making money, making it in the most convenient way possible, but making it at all hazards, then the bar is degraded. (Applause.) If the bar is to be merely an institution that seeks to win causes, and win them by back-door access to the judiciary, then it is not only degraded, but it is corrupt. (Great applause.) Sir, I am as peaceable a man as my friend Nicoll, yet I confess that his words of peace sounded a little too strong in my ears. The bar, if it is to continue to exist, if it would restore itself to the dig nity and honor which it once possessed, must be bold in aggression. (Great applause.) If it will do its duty to itself, if it will do its duty to the profession which it follows, and to which it is devoted, the bar can do everything else. It can have reformed constitutions, it can have a reformed judiciary -, it can have the administration of justice made pure and honorable, and can restore both the judiciary and the bar, until it shall be once more, as it formerly was, an honor able and elevated calling. (Applause.) I may mention in passing that at this time judicial reform, of which the Times was last year so useful a champion, had not then interested it enough to bring into its columns a full report of that important meeting. CONTEST OF 18TO. For the first time in four-and-twenty years, the Democrats had, in 1870, the law-making power. They had in the Senate just one vote, and in the Assembly seven votes, more than were* necessary to pass a bill, if so rare a thing should happen as that every member was present and all should agree. This result brought more dismay than joy to the " King." They had intrenched themselves against the people of this city in the legislative bodies. But the Democratic party was bound, by count less pledges, to restore local government to the voting power of the people of the city. The "Ring" could trade in the lobbies at OVERTHROW OF THE TAMMANY "RING." 99 Albany, or with the half-and-half supervisors in the mysterious chambers of that board. They might even risk a popular vote on mayor, if secure in the departments which had all the patronage, and could usually elect their own candidate. But they had no stom ach for a free fight, over the whole government, at a separate election. Their motives were obvious, on a general view of their human nature. None but the "King" then knew that, in the secret re cesses of the supervisors, and other similar bureaus, were hid ten millions of bills largely fraudulent, and that, in the perspective, were eighteen other millions, nearly all fraudulent. TIIE SHAM. ^Ajhamwas necessary to the u Eing." Moral support was neces sary to sustain their imposture. None of the "King" ever came near inTT^^T^^N atEaniel Sands often called to talk over city re form. He sometimes brought my honored and esteemed friend Mr. Peter CooperA They were convinced that the "King" had become conservative were not ambitious of more wealth were on the side of the tax-payers. There was thought to be great peril as to who might come in, in case the " Ring " should be turned out!) I told Mr. Sands I would shelter no sham. I would cooperate with anybody for a good charter. The light and air of heaven must be let in upon the stagnant darkness of the city administration. The men to come into office must enter after a vote of the people. I did not believe the " Ring " would agree to that. I would agree to nothing else. The "Ring" did not want any conference with me. They tried their own plan. It failed ignominiously. After it was defeated, none were so poor as to do it reverence. It never had the slightest chance of revival without a general support of the Republicans. Not only were three Democratic city Senators against it, but enough Democratic Senators from the coun try would vote against it if their votes could be made effective. OPPOSITION. During the lull, I had conferences with Mr. Jackson S. Schultz, then President of the Union League Club ; Mr. Nordhoff, of the Post ; Mr. Greeley, of the Tribune ; Mr. Marble, of the World, and many others. I entered into no alliance with the "Young De- 100 THE LIFE OF SAMUEL J. TILDEN. mocracy" for future political power, and for weeks was ignorant even of their meetings. I did accept from Mr. Marble two invita tions to attend consultations on a draft of a charter ; and certain fundamental ideas, on which he and I insisted, were conceded. These were a separate municipal election in each spring, a new elec tion hefore the executive offices should be filled, the subjection of all officers to a practical responsibility, and terms of office which should preserve to each successive mayor his supervisory powers over the government of which he is the head. These ideas were concurred in by the Union League Club, and by the other gentlemen I have mentioned. THE CONFLICT. Suddenly a charter was sprung by Mr. Tweed, and rushed for ward very fast. I wa# convinced it would pass. A clerk in one of the public offices came privately to tell me " the stuff had been sent up." There was a movement to resist it. Mr. Schultz, Mr. Bailey, and others, were in motion. The Union League Club appointed a committee of fifteen to go to Albany to remonstrate. My cooperation was asked. I had little hope. I expected a large Republican support of Mr. Tweed s scheme. But I thought it right to do the utmost for those who were willing to make an effort. I felt more scorn than I ever remember to have felt for the pusillanimity which characterized the hour. I had no objections to hang up my solitary protest against the crime about to be committed. I made a speech before Mr. Tweed and his committee of the Senate. An unrevised report was published at the time. It contains the following passages : By the first appointment of these various offices, self-government in the people of the city of New York is in abeyance for from four to eight years. Sir, by that bill the appointment of all these offices is to be made by a gentleman now in office. It is precisely as if in the bill it had read: Not that the mayor shall make these appoint ments, but the INDIVIDUAL who to-day fills that office. . . . The act proceeds in the same way in which the acts creating commissions have done. A gentleman is designated who makes these appoint ments. To all practical intents and purposes THEY ABE COMMISSIONS just as under the old, system. . . . Under the Republican system of commissioners, the Street Department and the Croton Board have been reserved to the control of the city authorities. They stand, as under the old system, anterior to the time .when these com missions began to be formed. . . . The mayor has no power over these functionaries, except to impeach them, and all experience has OVERTHROW OF THE TAMMANY "RING." 101 shown that that is a dilatory and insufficient resource, not to be relied on in the ordinary administration of the Government. . . . On December 31st, by the provisions of this bill, the term of (the mayor s) office will expire. Then, sir, what will be the situation of his successor ? For two years he will have no power whatever over the administration of the Government of which he is the nominal head. All these functionaries survive him. Their terms go beyond his term, and he has not the power to remove them, not the power to enforce any practical responsibility as against them. He is a mere cipher. Then, sir, at the end of two years another election takes place, another mayor is elected. Still these officers extend their terms clear beyond his, the shortest of them being for four years, and the longest of them for eight years, many of them for five. . . . This charter is defective in another respect, in that it makes the elec tion of charter officers coincident with that of the State and Federal officers. The municipal election of a million of people is of sufficient importance to be dealt with by itself, and by so doing you avoid mix ing of municipal interests with State and national interests. . . . What I object to in this bill is that you have a mayor without any executive power ; you have a Legislature WITHOUT LEGISLATIVE POWEE ; you have elections without ANY power in the people to AFFECT the Government for the period during which these officers are appointed. It is not a popular Government, it is not a responsible Government ; it is a Government beyond the control and independent of the will of the people. That the mayor should have real and substantial power is the theory we have been discussing for the last four or five years. It is the theory upon which we have carried on our controversies against our adversaries, and are now here. . . . After a period of twenty years, for the first time, the party to which I belong possesses all the powers of the Government. I have a strong and anxious desire that it should make for the city of New York a Government popular in its form. Mr. Chairman, I am not afraid of the stormy sea of popular liberty. I still trust the people. We, no doubt, have fallen upon evil times. We, no doubt, have had many occasions for distrust and alarm ; but I still believe that, in the activity generated by the effectual participation of the people in the administration of the Government, you would have MOEE PUEITY and MOKE SAFETY than under the system to which we have been accustomed. It is in the stagna tion of BUKEATIS and COMMISSIONS that evils and abuses are generated. The storms that disturb the atmosphere clear and purify it. It will be so in politics and municipal administrations if we will only trust the people. The bill passed. An intenser animosity than was excited against me in the men who thus grasped an irresponsible despotism over this city cannot be imagined. Mr. Tweed threatened to Lieutenant- Governor Beach that they would depose me from the State Commit tee, and met the answer, u You had better try it." 102 THE LIFE OF SAMUEL J. TILDEN. EEAL NATURE OF THE LAW. Let us pause a moment to consider the real character of that law, fraudulently called a city charter. Mr. Tweed s case will illustrate its operation. He had never been able to become Street Commis sioner. Charles G. Cornell was appointed to that office by a Republi can mayor, and Mr. Tweed made deputy. When the office became vacant, Mayor Hoffman could not be induced to appoint Mr. Tweed. George W. McLean was appointed, and Mr. Tweed remained deputy. He had now been turned out as deputy, and could not get back. On the loss of his office, all his political power turned to dust and ashes. The Tweed charter vacated the office of Street Commissioner and of the functionaries of the Croton Department, within five days, vest ing all their powers in a Commissioner of Public Works, and required Mr. A. Oakey Hall to appoint that commissioner. It was known to everybody that Mr. Tweed was to be appointed. The act passed on the 5th, and on the 9th Mr. Tweed was appointed. His term was four years. The power of the Governor to remove him on charges was repealed, and all powers of removal by the city government. Impeachment was restricted by the condition that the mayor alone could prefer charges, and trial could only be had if every one of the six judges of the Common Pleas was present. ILLUSTRATION. In ancient times offices were conferred by grant from the sover eign. This was conferred by grant from the State. Let us suppose the act had run in these words : " We, the People of the State of New York, represented in Senate and Assembly, do, by our Supreme Legislative authority, hereby grant to William M. Tweed the office of Commissioner of Public Works ; and annex thereto, in addition to the powers heretofore held by the Street Commissioner, all the powers heretofore held by the various officers of the Croton Department, TO HAVE AND TO HOLD the same for four years, with the privilege of extending the term by surrender ing any remnant thereof, and receiving a reappointment for a further new term of four years ; which office shall be free and discharged of the power of the Governor to remove for cause on charges, as in the case of sheriffs, and of all powder of removal by the city government; and absolutely of all accountability whatsoever, unless Mayor Hall, or some successor, shall choose to prefer articles of impeachment to the Court of Common Pleas, and unless all the six judges shall attend to try such articles." I aver that such was exactly the operation of that act. The legal OVERTHROW OF THE TAMMANY "RING." 103 effect and the practical working of the act were identically the same as if it had been expressed in these words. THE " KING " ENTHRONED OVER THE CITY. In like manner, the offices of three of the five heads of the parks were granted for five years to Peter B. Sweeney, Thomas 0. Fields, and Henry Hilton, giving them the control of the Central Park and every park in the city, and of the boulevards ; suppressing Mr. Green, and removing Messrs. Stebbins, Russell, and Blatchford. The office of Chamberlain was granted to Mr. John J. Bradley. The Department of Police was granted for from five to eight years to Messrs. Henry Smith , B. F. Manierre, Bosworth, and Brennan. The Departments of Health, Fire, Excise, Charities, Docks, and Build ings, were granted to others. By an amendment passed twenty days later, Mr. Connolly and Mr. O Gorman were brought into the same category. Such a concentration of powers over this city was never before held by any set of men or any party as was thus vested in the " Ring." The true character of this fraudulent measure was at once fully exposed. The issue was made by Messrs. Schultz, Bailey, Varnum, Greeley, and others, and by the Union League Club. All the feat ures of the act were pointed out in their resolutions and remon strated against. They were discussed, condemned, and denounced, in my speech published at the time. They were ably exposed by the World, the Evening Post, the Sun, and the Tribune. THE MEANS. It would seem incredible that such a violation of the rights of the people, and of all just ideas of government, even if these ex traordinary grants had been to the best men in the community, could be passed. No such thing would have been even excusable, unless for a short time as a temporary dictatorship in a public extremity. It was adopted as a permanent measure ; and the grant was to men who were the objects of suspicion ; who, in little more than a year afterward, were hunted from human society, as well as from office some of whom were or are in exile and others of whom are now arraigned by the State in civil and criminal actions. The air was full of rumors of corruption. The great public trusts, involving the interests, safety, and honor of a million of peo- 104 THE LIFE OF SAMUEL J. TILDEN. pie, had been divided up as bribes. It was everywhere said that the crime had taken a grosser form ; and that Senators and Assembly men had been bought with money to vote for this iniquity. A year later it was stated in the newspapers, on the authority of Judge Noah Davis, as derived from a well-known member of the lobby, that the price paid to six leading Republican Senators was to each ten thousand dollars for the charter, and five thousand for the kin dred bills of the session, and five thousand for similar services next year. Shortly after this revelation, while the revolt of forty thousand Democrats in this city was taking its representation away from the " Ring," the Republicans of the interior were re electing five of these six Senators as their contribution, with many other similar charac ters, to the " Reform " Legislature. Those five Senators now sit in the highest seats of the Grant Republican Sanhedrim at Albany. The Times has for a long while been as " still as a mouse " about them. WHO BETRAYED THE CITY ? There have been two great battles against the " Ring." The first was in Albany in April, 1870. That was to prevent the " Ring," while only objects of suspicion, from being enthroned in absolute dominion over the people of this city. The loss of that battle made no change possible until the Senate could be changed. The election for Senators did not come until November, 1871. Then was the sec ond great battle made necessary by the loss of the first. Who was responsible for that disastrous day, when the beginning of the crimes afterward discovered was shrouded in darkness and their larger development made possible ? Was it Mr. Tilden ? Mr. O Conor ? Mr. Hewitt? Did their " respectability cover the Ring s rascality," as the Times charges? The Times itself shall answer. On the 6th of April, 1870, the day after the passage of the act granting New York City to the "Ring," the Times, in an article headed "Municipal Reform," hailed this measure as a reform; de rided the Union League Club and Mr. Greeley with their " entire lack of influence," in that "so pronounced an expression" against the charter had not " been heeded l)y at least one Republican Senator," and said that "If it shall be put in operation by Mayor Hall, with that regard to the general welfare which we have reason to anticipate, we feel OVERTHROW OF THE TAMMANY "RING." 105 sure our citizens will have reason to count yesterday s work in the Legislature as most important and salutary " On the 8th it declared : " Senator Tweed is in a fair way to distinguish himself as a re former ;" that "he had put the people of Manhattan Island under great obligations," etc. ... " We trust that Senator Tweed will manifest the same energy in the advocacy of this last reform which marked his action in regard to the charter" On the llth it published Mayor Hall s instrument, dated the 9th, making the appointments to all the municipal offices. Among them were the following : Department of Public Works, William M. Tweed. C Peter B. Sweeney, " Parks, ] Thomas C. Fields, ( Henry Hilton. Police \ Henry Smith R K Manierre > \ Bosworth, and Brennan. Chamberlain John J. Bradley. And so on. On the 12th it jeered the Union League Club, Mr. Greeley, and Mr. Tilden. It commented on a remark in Mayor Hall s paper mak ing the appointments, in which he said he would have been politi cally justified in conferring them all on Democrats ; and replied " that the Republicans were rather useful to the authors of the new charter in the recent contest;" that, "but for the Republicans, the Young Democracy might to-day be at the top of the tree ; " that "Mayor Hall and his associates will doubtless show a proper appre ciation, of the assistance rendered them ly the Republicans when the enemy were crying war to the knife, and the knife to the hilt." I On the 13th it said: "As a whole, the appointments of the heads of the various departments of the city government which have been announced by the mayor, are far above the average in point of per sonal fitness, and should be satisfactory. We feel inclined to be tliaiikful, if not entirely satisfied with the result." It also asserted that .the charter and election law " could not have been secured without the help of the Republicans in the Legislature^ and hence, THE CREDIT is AS MUCH THEIRS as it is of the TWEED Democracy." The "Ring" having possession of the Tammany Society, in which Mr. Tilden had not set his foot, during their ascendency, at the elec- 106 THE LIFE OF SAMUEL J. TILDEN". tion of April 18th, put up a sham ticket on which they placed the names of persons whom they hated, and gave it a few of their own votes to exhibit the appearance of a contest. On the 19th the Times, under a flaming notice headed " Now is the triumph of Tweed complete," exulted over the prostrate Tilden, A. H. Green, and others, " heroes of the O Brien faction." On the 21st of May it had a commendatory notice of Mr. Peter B. Sweeney, presiding over a meeting of the Commissioners of Pub lic Parks, and added, " that lie will ~be faithful to his wor$ the meet ing yesterday afforded &fresli guarantee" IMMEDIATE CONSEQUENCES. The 5th of May was a day destined to be famous in our municipal annals. Some mysterious and insensible influence seemed to debili tate the tone of the Times in its utterance that morning. It spoke feebly of " reforms made possible by the recent legislation at Albany." Was the atmosphere dark and murky with what was going on in the New Oourt-House at the same moment ? There the single meeting of the Board of Special Audit was being held. Hall, and Tweed, and Connolly, were making the order for the payment of the $6,312,500, of which scarcely ten per cent, in value was realized by the city. Tweed got twenty-four per cent., and his agent, Woodward, seven. The brother of Sweeney, ten; Watson, seven ; twenty went to parties not yet named in the forms of legal proof ; thirty-three went to the mechanics who furnished the bills, but their share had to suffer many abatements. Garvey had advanced, March 30, $10,000 to go to Albany; and again, April 17, $40,000, making $50,000. Ingersoll also had to send $50,000 ; Keyser, $25,- 000; Miller, $25,000; Hall, $25,000; and others their quotas; and then they had to do work on city houses and country houses, and make furniture, and to paint, to supply safes, and perform miscella neous services out of their third. As the time advanced, the percentages of theft mixed in the bills grew. Moderate in 1869, they reach sixty-six per cent, in 1870, and later eighty-five per cent. The aggregate of fraudulent bills, after April 5, 1870, was, in the rest of that year, about $12,250,000, and in 1874 $3,400,000. Nearly fifteen millions and three-quarters of fraudu lent bills were the booty grasped on the 5th of April, 1870. Four teen, perhaps fifteen millions of it were sheer plunder. OVERTHROW OF THE TAMMANY "RING." 107 The victory of the 5th of April enabled the "Ring " to cover up what had been already stolen, and to go forward on a far larger scale, and commit these enormous robberies. THE SUMMER OF 1870. The Times is in error in saying that its " daily, incessant attacks on Tammany began in the summer of 1870." There is not a. word of that kind in its editorials in all that summer. Until the 20th of Sep tember, it kept " still as a mouse," as it says Mr. Tilden did. Then it first touched the subject incidentally to an article on the Demo cratic State Convention held the next day. The stillness of Mr. Tilden left ringing in the ears of the people his unavailing protest and his denunciation. The stillness of the Times left echoing in the public ear its boast that "the credit" of the "Ring" supremacy belonged "as much to the Republicans as to the Tweed Democracy" Three days later, it began a series of elaborate attacks, not really upon the "Ring," but upon their foe, Mr. Tilden. It accused him of " going to Rochester to preside over Tweed s convention ; " and it has repeated the statement many times lately. The truth is, he did not preside, and it was not Tweed s convention. It was my official duty to move the appointment of the temporary chairman, and it was customary to precede the motion by an address upon national or State politics. That I did. The convention was a body of honorable and respected gentlemen, except a few members of the " Ring," who got in as delegates by means of the power and prestige the Times had helped them to acquire, and in whom it had expressed its confidence after their then recent public assumption of the municipal offices. I had not even the benefit of its first beginning of retraction. That happened after I had gone to the convention, and was not com municated to me by telegraph. To have staid away would have been to abandon my watch and guard. True men, in the intervals of battle, rest on their arms. They do not run away. But the Times complains that I did not denounce the "Ring" in my speech. Neither they nor their doings were at issue. There was no new suspicion of them after they had been accepted as rulers of the metropolis by the nearly unanimous vote of both Houses of the Legislature, aided by the Times. The general public had acquiesced 108 THE LIFE OF SAMUEL J. TILDEN. in the disposition to try them again. The whole press assenteo!. Nearly everybody began to make relations with them. I did.rtot. I jstood aloof. The Kepublican State Convention had been held two weeks before. Senator Conkling, Mr. George William Curtis, and others, addressed it; but not one of them had a word to say about the surrender of the metropolis to an autocracy ; or of the character of the men to whom this ignominious betrayal had been made. How could they? The " credit " of it was "as much due" to " the Re publicans as to the^Tw eBd Democracy." t fi}lS T Nothing was left me to do but to await the issue of the porten tous experiment. As to their frauds at election, I had no means of knowledge more than other citizens ; but I had sent to Albany a care fully prepared election law, which had been examined and approved by leading Republicans of this city. The Republican Senators re jected it, and took Tweed s election law with Tweed s charter. The Times boasted over this election law as "by far the more sub stantial reform of the two." I feel scarcely able to enter into the comparison of the relative merits of the two measures. The " sub stantial reform " known as the election law was the means by which Mayor Hall acquired such immense power over the inspectors and canvassers, and all the machinery of the elections, that the "Ring" began to think they could get along without the voters. It sup pressed the opposition of the practical politicians in the wards, who saw how it was capable of being worked. In the contest of 1871 it discouraged them from joining us more than any other power wielded by the " Ring." In some districts, men of great local influence open ly said it was of no use to run a ticket so long as that power could be exercised against them. The Reformers were generally appalled by it. U had confidence because I counted on the intensity of the popularMerment as likely to permeate and weaken all the agencies of the "Ring," and to swell the wave of opposition until it should V sweep over all artificial obstructions. ) If the value of a thing is to be measured by what it costs, we are thrown back to a statement made to Judge Davis of the price paid to the leading Republican Senators. Five thousand dollars for the election law, and for section 4 of the tax levy, under which the $6,000,000 of the special audit were acquired, was perhaps as cheap as $10,000 for the charter. The agents of the Citizen^ Association cost only a few offices. The Times threw itself in gratuitously^ My defense, if I need one, for not stopping the " Ring " from cheating OVERTHROW OF THE TAMMANY "RING." 109 at elections, is that I tried to do so but could not. I was beaten by the Eepublican Senators and the Times. \ COURT OF APPEALS. Soon after the disastrous failure to secure self-government for our people, a lawyer of this city came to me and said that the best thing for me to do was, to endeavor to secure a good Court of Appeals. My recollection is, that the general term for this department, two of the three members of which have since been expelled for corruptio n, had, at that time, just been constituted. I felt that to make civil rights safe in the second and last appeal was of great value, and set about the work. In the mean time, a distinguished gentleman from the interior came to propose to me to run as Chief Judge of the new court, and to assure me of a support which I understood would carry with it the. State administration and everything, jealous of or hostile to me throughout the State. It was evident that I was con sidered less dangerous at the head of the court than at the head of the State Committee. I answered that I thought I should not be dependent on any such help if I desired the nomination ; but that it was not in accord with my plan of life to desire or take the office. I did issue a private appeal for the formation of a good c*ourt to nearly all the Democratic lawyers of the State, and to other promi nent men. Many of the foremost members of the bar came to the convention, and we nominated and elected five of the seven mem bers of a court which has the complete confidence of the bar and the people. After the judicial election I went on business into dis tant States until late in the summer. WINTER OF 1871. y I did not set my foot in Albany during the session of 1871. The Times frequently said, " Such men as Mr. Samuel Tilden have no real influence." If the Times meant no influence in what was then the political and legislative Sodom of the State, there is no exaggeration in the assertion. Men who are bought on great questions are in no situation to disobey on inferior matters which are really insisted on. \Mr. Tweed was never so supreme over nearly the whole body of the Republican members, and, with their aid, could despise or suppress and punish every revolt on the Democratic side. \ And he had acquired the prestige of successful power. The Democrats had not in either IK) TIH-: UKK OK SAMUKI, .1. TILDKN. House one vote l.o spare from the number neeessnry to pjiHH a bill. lillt. Mr. Tweed WHS no worse oil" Mini, lie W.MH completely dependent on his alliances \villi the Republicans. Nearly every had measure P.I .| vviMioiil, any opposition, or with only n. Hliuin opposition. The TYfttM) on olio OOOft0iOD| OOmpluinod Mint the root of the evil WUH in the apathy Of the BepubUoan party of the city. Them WHS force iii the statement. The .piv jii l ieeM, the party passions, the interests of ambitious men, make the opposition tin- nuturul organ of the discon tents of society with the ascendant power, which ut thin time liud Ome pretext for culling ilHulf Deinocrutic, though, in truth, it \\nsn 41 RiiiK" of both partieH. The coniliiiuition hn<l nuch control ove.rtlio Republloani nt Albany mid in this city, Mint n, revolution in the Republican party wan necessary to crcntc an opposition; mid, with out mi opposition, diHHcnting Deinoeruts were powerless. In ntiin- alati&g the party nniiuoHity of th licpublicans, even though by vague appenlH, or if for merely partisan ends, the 7 hncn rendered vnluublo Nurvioo in ft propurution for the fulur<\ Hut. rime wns no- oeuary. It is wholly untrue that at nny nionuMit. I was timid, or Hellinhly roHorvod, or nhrniik from any roH|>onsibility. I niik tiot a newspaper whose biisiiu^s it is to address (lie public. every day ; wboso recurring want more than meat or bread is a topic, ; and to whom invective, even if without facts or evidence, provided it makes a sensation, is money nioiv money in circulation and adver tisements. Men not of the editorial avocation have to turn from their ordinary duties and habits when they appear before the public, and it is only on few occasions that they find the forum or the oppor tunity or the leisure. How many times did Mr. William A. Booth, who is mentioned with commendation by the / iinc.t, and is truly an excellent cit i/.en, or Mr. .Ine.kson Sehull/,, <>r even Mr. Kvurts, appear luiiu" this period { I \\ill not ask ahuul the chairman of the !> < publican State Committee. It is safe lo conjecture that he was run- niii! 1 , of eri. iiul:) for some branch of the " Ring," and serving around the legislative halls for what arc daintily termed counsel lees. I would have had a perfect right to wait until that ll Ring " domin ion ovor our million of people, which the / iini .t boasted was " ns much" tho Work of "the Republicans" as of the "Tweed Democra cy," had matured its falal fruits, before 1 should again renew Mie battle which had been once betrayed and lost. Hut, nevertheless, on some occasions I did intervene. OVERTHROW OF TIIU TAMMANY " RIN<J." ]|| HCIIOOI, HYKTICM. The revolution of tin- school system, in tho winter of 1871, wiw the favorite scheme of the master spirit of the u Ring." I publicly oondemndd it. CO HI . AMKM>MKNT. The |)rovisioii of the Code Amendment, hill which conferred on tho judges n, transcendent authority to punish for what they might, choose to consider ;is contempts, was the measure which was to :ip ply coercion l,o the press mid (,o speakers who should attack the " King." What the I wo millions :i. year of advertisements, open to ho given or recalled ut the will of Mayor Null, should fail to win, thin nummary power -sinco nndei stood to h;ive heen devised liy Ourdozo, ftlld (U Ni fned to he wielded hy him iind r.;irn;ird W. is t,o COIKJIMM . It w. is snid I know not with wluit truth to he speci;dl_y ninied jit, (Jie Tiini-n. Trohuhly ni;inv :iu :irlie|e of th;if joiini;il in the spring of IH7I, which Hcenied to MIC. public t<> be \;iv;ne :md w. intin; ; in dolinito facts, h:id point nnii;, li l the men who knew they had Htolen fourteen millions since it helped them into power. At any rato, this scheme was (he desperate resource of a domination, hold and blind, as it was ripening for n l ;dl. In if were eoncentnited tho fe.-irs , ind ho|ies of the " iJin 1 ;." If was pussed without a dissenting voice, in either House. Kvery Kepiihlicaii member voted for it or Ktiiid a.way. The chnirimin of the committee of conference, who miinuMivred it, through, was a, Kepiiblicnn Sen;itor, who a,dmittc(l last year tho "borrowing" in one instance of $10,000 from Mr. Tweed, which had not heen repaid. One evening in May, when I was temporarily confined to my house, by illness, Mr. Kandolph Kobinson called to ask me to be chairman of a committee of the l>ar Association lo go to Alhany and ronio nst, rate with (Jovernor lloll man against, his signing this hill. I declined to bo chairman, but assented that, the me. -I in- mi:-;lit put, me on Ihe commitlee, if it, chose to do Ho, with the knowledge I, hat, I could not go; and said that I would write, a. letter against the bill. On .second t, bought, a, hurried note was addressed to Mr. Kvarls, who was chairman, I hat, it, might be. sure, of publication. It was paraded in Ihe foreground of the controversy. It and its writer were constantly cited by the. Tinn H. An issue was publicly declared from which everybody knew I would not retire. If tho bill bad not heen vetoed, an open collision must have spread all over the. State. 112 THE LIFE OF SAMUEL J. TILDEN. After I had taken my position, I received assurances of cooperation, in such a controversy, from Francis Kernan and others. THE CONTEST OF 1871. The 7th of November, 1871$ was the first day when a vote of the people could even indirectly retrieve the results of the legislation of April 5, 1870. STRONG POSITION OF THE " KING " IN THE CITY. Mr. Tweed was in his office until April, 1874; Connolly until 1875, and Sweeney until 1875. They, with the mayor, were vested with the exclusive legal power of appropriating all moneys raised by taxes or by loans, and an indefinite authority to borrow. Practically, they held all power of municipal legislation, and all power of ex pending as well as of appropriating moneys. They had filled the de partments with their dependents for terms equally long. They wielded the enormous patronage of offices and contracts. They swayed all the institutions of local government the local judi ciary the unhappily-localized portion of the State judiciary, which includes the Circuit Courts, the Oyer and Terminers, the Special Terms and the General Terms; in a word, everything below the Court of Appeals. They also controlled the whole machinery of elections. New York City with its million of people with its concentration of vast interests of individuals in other States and in foreign countries with its conspicuous position before the world had practically no power of self-government. It was ruled, and was to be ruled, so long as the terms of these offices continued from four to eight years as if it were a conquered province. The central source of all this power was Albany. The system emanated from Albany. It could only be changed at Albany. In my speech at the Cooper Institute, in 1871, I said : " They stripped every legislative power and every executive power, and all the powers of government, from us, and vested them in half a dozen men for a period of from four to eight years, who held, and were to hold, supreme dominion over the people of this city. "I heard my friend Mr. Choate say that the men in power had been elected by your suffrage. I am sure that was a slip of the tongue. The men in power were elected by no man s suffrage. They never could have been elected by any man s suffrage. Jjjey .were put in power by the act of the Senate and Assembly of the State of New York, without consulting us or any of us. The ground that I had taken is that, as the State had put f /n-w men o/< //. , Hie OVERTHROW OF THE TAMMANY "RING." H3 State mmt TAKE THEM OFF. That is the reason I differ from my Democratic friends of the rural districts, who say : " What, will you carry a local controversy into the State Conven tion? Will you carry it into the politics of the State, and distract and disorganize the Democratic party ? "I answered: It is too late to consider that question. For ten years the Democratic party has pledged itself to give back to New York the rights of self-government, and when it came into power it betrayed that pledge and violated that duty. "Alone I went to the city of Albany, and recorded my protest against the outrage. . . . The plan was cunningly contrived and skillfully executed, but owed its success to a disregard of all moral obligations and all restraints of honor or principle. How was it accomplished? By taking a million dollars, stolen from the tax payers, and buying in the shambles a majority in the two Houses of the Legislature. " When I spoke against this charter before a committee of the Senate, Mr. Tweed sitting in the chair, I already knew that not more than one vote of the Democrats, and not more than one vote of the Republicans, would be cast against it ; but I felt it to be my duty to the people of New York, and to the Democratic party, to record my protest against what I then deemed a crime against us, and a be trayal of our principles." The officers composing the "Ring" government of this city could not be removed, or their power curtailed or limited, except by new legislation. Such legislation could only be made by the concurrent action of the Assembly, Senate, and Governor. J If they could hold enough of the Senators to defeat the passage of a bill changing this state of things, they could resist public opinion, and defy the vote of the people of this city, which might spend it self, without results, upon aldermen and assistants, totally without power ; and on a mayor, having little legal authority, and capable of being nothing more than a subordinate instrument of the executive departments. CEISIS OF THE CONTEST. The Senators who had voted on the 5th of April, 1870, with but two dissenting voices, to create this state of things, did not come within the reach of the people until the election of the 7th of No vember, 1871, when their successors were to be chosen. The 5th of April, 1870, and the 7th of November, 1871, wena the two days of battle. The intervening time was but the interval between two battles. The period which preceded the election of the 7th of November, 1871, was important and valuable only as a time of preparation. 114 THE LIFE OF SAMUEL J. TILDEN. PIVOT OF THE CONTEST. The objective point of the battle was the legislative power of the State the Senators and Assemblymen. "KING" PLAN OF THE CAMPAIGN. The "King" saw that. Early there came to me prominent gen tlemen from the interior to propose that I should name all ie dele gates to the State Convention to be sent by the Tammany organiza tion ; and so have no contest. The object of the " Ring " was to retain the prestige of " regularity " in aid of the election of their nominees as Senators and Assemblymen. If they could hold the five Senators from this city, they had no misgivings about holding the Republican Senators from the country. At last, when I consent ed to have a conference with one of them on the basis of a resigna tion of all city offices, and a withdrawal from the Democratic city organization, and all political leadership, the surrender on my terms was refused ; and their reliance on holding the Senate, BY MEANS OF EIGHT REPUBLICAN SENATORS already secured to Mr. Tweed, was avowed. A passage of my speech at the Cooper Institute is reported as follows : " Mr. Tweed s plan is to carry the senatorial representation from this city, and then to reelect eight, and, if possible, twelve of the Republican Senators from the rural districts whom he bought and paid for last year, and to control all the legislation that might be pre sented there in your behalf ; and it was lecause I had some misgiv ings that this might ~be done that I thought it was my duty personally to take the field and help you in this conflict. (Applause.) " If I had felt that the Republicans could have carried the thing of themselves, it would have been pleasanter and easier for me to have stepped aside and let them do it. I felt it to be my duty to .the honest masses of the Democracy, and still more to the people for party is of no value unless it can serve the people faithfully and effectually to take my stand with the advanced columns of reform and good government to take my place there, and stand or fall with those who gather round me." (Applause.) MY PLAN OF THE CAMPAIGN. My plan of the campaign was in a single idea. It was to take away from the " Ring " the Senators and Assemblymen from this city. That was to storm the central stronghold on which their lines rested, while they were extending their operations over the whole State. OVERTHROW OF THE TAMMANY "RING." H5 Their allies throughout the State in both parties would be ren dered powerless, or be dispersed. I feared most their allies in the Republican party. As it was, the Assembly was largely made up of men who had got themselves nominated by the Republicans in the expectation that Tweed would come back and such golden, or rather greenback showers, as he had scattered during the two previ ous sessions, would descend upon them. Offers of a surrender of all part in the State Convention and in the State organization were continually made in every form ; and weighty pressure was brought on me from powerful men all over the State to accept it, and so " save the party." I uniformly asked, " Who is to have the five Senators and twenty-one Assembly men ? " In a speech at the State Convention I made this issue. I said that the object of endeavoring to get a recognition of the or ganization then controlled by the "Ring," or of avoiding its direct repudiation, was "to go lack and nominate twenty -one members of Assembly and five Senators, and then to say to the uprising masses of the best intellect and moral worth of the people, " If you do not vote this ticket you are out of the Democratic party." I denied that the system of organization then in use in the city had any moral right to be considered regular, or to bind the Democratic masses. I avowed before the convention that I would not vote for any one of its nominees as Assemblymen or Senators. In my speech at Cooper Institute I said: "A great many times that offer was repeated, and everything was tendered me except the Senate and Assembly of the State of New York; but I said that everything else was of no value for them to give, and of no value for me to take ; that the legislation which should be made in respect to the city government, whatever else I would compromise, that I could not compromise, and I WOULD NOT. ^Applause.) I told the State Con vention being the nominal head of the Democratic party of this State for the sake of perfect frankness and distinctness, and in order that I might not be misunderstood I told them that I felt it to be my duty to oppose any man who would not. go for making the govern ment of this city tchat it ought to be, at whatever cost, at whatever sacrifice. If they did not deem that regular, I would resign as chairman of the State Committee, and take my place in the ranks of my plundered fellow-citizens, and help them to FIGHT THEIR BATTLE OF EMANCIPATION." On this issue I staked my political existence and all my party re- 116 THE LIFE OF SAMUEL J. TILDEN. lations throughout the State. I threw myself into the breach, in order to inspire courage in the Democratic masses of the city to break away from the prestige of a pretended but sham "regularity." HOW TO OVERTHROW THE " RING " IN THE POPULAE VOTE OF THE CITY. There was a Democratic majority in the city of at least 40,000 or 50,000, if all the honest, and only the honest, votes should be polled. The party organization in the city, which had been accepted by the State Convention for years, in preference to the other organizations that had competed with it, had fallen into the complete possession of the "Ring," and had been made a close corporation, within which no contest could be waged against them, so long as they held so vast official power and patronage. All rival organizations, and nearly all spirit of opposition, had been crushed out under the operation of the enormous centralized dominion derived from Albany. The despondency and disbelief in the possibility of carrying the election in the city against the nominees who would be in the interest of the "Ring" were deep, almost universal, and hopeless. It is seldom that ten per cent, of any party scratch the regular ticket. To the Democratic masses it was said, not only that the accused persons were innocent, but that, even if they were guilty, a great organization ought not to be destroyed for the wrong of a few indi viduals ; that the party was not responsible for them, and that the particular nominees were good men. How were the votes of twenty, or thirty, or forty, thousand rank- and-file Democrats to be detached? Nothing short of an organized revolt of the Democratic masses, under the best Democratic lead, wjth the most effective measures, and with some good fortune, could accomplish so difficult a work against such extraordinary powers as were combined to uphold the existing system. The rst measure necessary was to break the prestige ofjthe or ganization which the " Ring " controlled as the representative of _flie party in the eyes of its masses. ; to do this by the act of the State Convention. That was no easy matter. To able men who sympathized with me it seemed impossible. It proved even more difficult than I ex pected. A party in power is naturally disposed to risk the continu- OVERTHROW OF THE TAMMANY "KING." 117 ance of abuses rather than to hazard the extreme remedy of " cutting them out bj the roots." The executive power of the State and all its recently-enlarged official patronage were exerted against such a policy. And since the contest of 1869 the " Ring " had studied to extend its influence on the rural districts, and- had showered legisla tive favors as rf they were ordinary patronage. Without having, or having had for years, the power to give an office in city or State, I stood on the traditions of the older leaders, and the moral sense of the honest masses of the Democratic party. THE TIME WHEN I ACTED. The publication by the Times of what is called the " Secret Ac counts " was completed on the 29th of July. They consisted of copies, made by a clerk, of entries in a book kept in the office of the Comptroller. They showed the dates and amounts of certain pay ments made by the Comptroller, with a brief description of the ob jects, and the names of the persons to whom the payments were made. The enormous amounts, compared with the times and purposes, and the recurrence of the same names, created a moral conviction of gross frauds, though, of course, not amounting to judicial proof against anybody, on which a criminal or civil action would lie, or dis closing the real principals in the fraudulent transactions. I soon became satisfied of the substantial truth of these state ments, by the futility of the answers on behalf of the city officers,, and by cross-examining a financial gentleman who came to me with a letter from a distinguished citizen, and the form of a call for a pub lic meeting which he wished me to head. The statements made me believe that municipal frauds had been committed, immeasurably transcending anything I had ever suspected ; and they furnished a sort of evidence capable of acting strongly upon the popular mind. \I am, a believer in the potency of definite facts in making an impression on the public! For that purpose, I had rather have one fact than a col umn of rhetoric. The publication was made just as I was going into the country. In two or three days there, I formed my programme. ME. KEENAX. For so difficult a movement in the State Convention cooperation was necessary. The first man I sought was Mr. Francis Kernan. His freedom from all entanglements whether personal or political 118 THE LIFE OF SAMUEL J. TILDEN. with corrupt interests or corrupt men ; his high standard of public duty ; his disinterestedness and independence ; his tact and eloquence in debate ; his general popularity and the readiness of his district to send him as a delegate made him my necessary ally in the State Convention. After much telegraphing I found he was in Albany on professional business. I went there, and passed a day with him. It was, I believe, the 4th of August, 1871. That was within six days of the time when the publication of the " Secret Accounts " was completed. It was a month before the 4th of September when the meeting was held, at which the Committee of Seventy was cre ated. It was three weeks earlier than I had moved, in 1869, when my own fortunes were involved in a contest with the " King." It was earlier than a political campaign in reference to the November election usually opens. It was more than three months before the election. So far from the " battle " being over, it was scarcely be gun. So far from the " Ring " being " down " as the Times alleges, it was confident of holding its own for months afterward. The programme then submitted to Mr. Kernan embraced every thing which has been done since, except the impeachment of the judges. He was about to go to the sea-shore with a sick relative, and, while his concurrence was given, particular measures were left for his consideration until his return. Ten days afterward I joined him at Albany went with him to Utica and received the assurance of his cooperation ; and had consultations with Governor Seymour, who was also in full ^ympathy with us. Mr. Kernan will recall the fact that at that first interview contemplating the difficulty of the conflict I said and he agreed that we ought to make the contest, even if we should fall in it. On my way home, I stopped a few days at Saratoga. There I met Mr. George Jones, of the Times. I had known him twenty years. He spoke freely to me. I saw no indication that he thought the battle was over. He seemed rather to feel its stress. I told him I should appear in the field at the proper time. Often after ward, when I met him, he referred to that casual interview with ap parent satisfaction. Some five or six weeks later after Mr. Green was in as sub stitute for Mr. Connolly I went into the Comptroller s office. There sat Mr. Jennings and Mr. Jones. The former said, " We want an interview with you." Mr. Green kindly gave us a room in the basement. When we had arrived there, and were seated, Mr. Jen- OVERTHROW OF THE TAMMANY "RING." H9 nings said, "Do you see any daylight?" and went on to say, in words which I may not be able literally to repeat, that the contest was too exhausting to be continued very long. I stretched out my hand to him and said : " Be of good cheer ! We shall win this fight." ME. OSWALD OTTENDOEFEE. At Utica I had seen some gentlemen who professed to represent Mr. Ottendorfer s views. I hastened to see him as soon as I arrived at New York. He had accompanied me to Albany the year before, when I made the speech against the Tweed charter. He was a very important element in the contemplated movement. His purity and elevation of purpose made me think he would join us, notwithstand ing the great efforts which were made to prevent it. He did so. ME. O CONOE. Averse to engaging personally in politics ; at an eminence in pro fessional renown, in social consideration, and in personal character, which lifted him above rivalries, and disposed everybody to defer to him, so long as he abstained from fresh collision ; entitled to consult his ease and the comfort of tranquillity, Mr. O Oonor was, neverthe less, in complete sympathy with the right. I had often communed with him over evils which there seemed to be at the time no means of redress. I went out to Washington Heights to see him. I told him the hour had come. He said he would help according to his view of what he was best adapted to, and of what was most fit for him to undertake. There were great legal difficulties in the way of getting investiga tion or redress. The aldermen, who were vested with a statutory power of com pelling disclosure, were allies of the "King." The Legislature was not in session. For a long time there was no grand-jury capable of making the traditionary inquest, which had not been packed. The local authorities which had power to order civil actions, if such would lie in their behalf, were in complicity with the wrong doers. The officials who would conduct such actions were their ap pointees ; the juries would be selected in their interest, and the judges who dominated in the courts were their instruments. Criminal proceedings were equally hampered. Well might the mayor say to Garvey as the latter has recently testified" Who is to sue ? " 120 THE LIFE OF SAMUEL J. TILDEN. As early as August I had discussed with Mr. O Conor the right of the State by the Attorney-General to sue ; but even that resource was unavailable, because we could not then count on the cooperation of that officer. When I suggested a new law appointing one or three commis sioners ; conferring on them full powers of compelling disclosure ; vesting them with the right to sue ; enabling them to lay the venue outside of this county ; giving preference to their actions ; with other provisions to render the remedy speedy and efficacious, Mr. O Conor said he would take the head of such a commission. It was these conferences which led Mr. Kernan and myself to vote for Mr. O Oonor, without his knowledge, as Attorney-General. To the gentleman who was nominated I sent a message advising him .of the necessity that he should satisfy the people of New York that he would exert the powers of his office in their behalf. He came to my house on the Sunday morning of October 15th, with a letter dated the 14th, which was published on the 16th, containing such an as surance; and said he would authorize any suit Mr. O Conor or I should advise. He had returned to Albany and communicated this agreement to Governor Hoffman, before the delegates of the Commit tee of Seventy had their interview on the afternoon of the 17th, at which Mr. Champlain announced his purpose to depute Mr. O Conor. With characteristic disinterestedness and public spirit, that trust was undertaken by Mr. O Conor, with the declaration that he would accept no compensation for his professional work; and ever since he has given his time and his great abilities and acquirements to the service of the people. OTHER PREPARATIONS. These conferences were in August, and before the Committee of Seventy was appointed. They did not wait for or depend upon any cooperation. They contemplated independent action. Other prep arations for the State Convention were made. I accepted an ar rangement to be upon the floor as the representative of my native district, which had always during the Ring ascendency provided me that opportunity. I asked a few other gentlemen to come, but had not time to look after delegates in detail.( I did, however, early in September, issue a letter to twenty-six thousand Democrats, re viewing the situation, and calling upon them to " take a knife and cut the cancer out by the roots." j OVERTHROW OF THE TAMMANY "RING." 121 SUBSTITUTION OF ME. GREEN FOR MR. CONNOLLY IN THE COMP- TEOLLERSHIP. Meantime an important event happened which could not have been foreseen. On the 14th of September Mr. Connolly applied to me through a friend for an interview. Without knowing its object, I gave it on the morning on the 15th. The most artful members of the "Ring" plotted to save themselves, to come in as parts of a new system, even as reformers, with added power upon Connolly s ruin. In his dis trust of them, and fears for himself, he sought advice. I began by telling him that I could not be his counsel or assume any fiduciary relations toward him ; that he and all the others must surrender all office and all local party leadership, and recognize the fact that their careers were ended. To this he assented, but still wanted my advice. I counseled him that he had no right to resign his office into the hands of his confed erates ; that such an act would be a new wrong against the public. To his inquiry whether if he remained he could get money to carry on the government, I told him I would consult Mr. Havemeyer, and we would meet him again that evening. Mr. Havemeyer came, but Connolly did not. After consultation, Mr. Havemeyer went to Connolly s house, found him in bed, sick, encouraged him, appointed a meeting at my house for the next morn ing at ten, and requested, as I had desired, that Connolly s counsel should come with him. Meantime I had examined the law, and found a singular enactment by which the Comptroller was authorized to appoint a deputy, and confer upon him, for a definite period, all his own official powers. Mr. Havemeyer must have been informed of this, and consulted about the proposed action under it before he went to Connolly s, for he had agreed to assume the responsibility of public advice to Connolly to stay in, as Mr. Green could only hold as his deputy. Besides Mr. Havemeyer and Mr. Green, the only human being who had any inti mation of the purpose was Judge Swayne, of the Supreme Court of the United States, who passed the evening with me, to whom I con fided the matter, with whom I discussed the question of the right of the State to sue in such cases under the general rules of jurisprudence, and, in the intervals of conversation, with whom I prepared some of the papers. 6 122 THE LIFE OF SAMUEL J. TILDEN. In the morning, Mr. Havemeyer an,d Mr. Connolly and his counsel came. I pressed Mr. Connolly to surrender the office into the hands of the Eeformers by deputing Mr. Green to exercise all its powers ; that he had less to fear from the public than from his confederates ; that if he threw himself upon the mercy of the public, and evinced a disposition to aid the right, the storm would pass him and beat upon the others. His counsel said it was a personal question. One of them stated the opposite view taken by some of Mr. Connolly s friends. It was that, if he would resign, a man should be put in his place who would have character enough to assume the whole duty of investigation, and would exclude the committee of which Mr. Booth was chairman, and that Mr. Connolly should be protected. It was disclosed that the counsel who presented this view had come fresh from an interview with Mr. Sweeney. At length Mr. Connolly consented, the papers were executed, Mr. Green sworn in, and they left my house only to go to the office of the Comptroller and put Mr. Green in possession. The Times seems to consider the acquisition of this office by the Eeformers at that stage of the contest as of little value. That was not its opinion at the time. It is not my opinion. The possession of the comptrollership by the Reformers was a fatal embarrassment to the " Ring." It involved a publicity of all the ex penditures of the departments, and was a restraint on those expendi tures. It created doubt and dismay in all their actions. It was an obstacle to such modes of raising money as had brought the charter through in 1870, and to the hope of reimbursing advances for such purposes. It protected the records on which all civil and criminal actions must be founded, from such destruction as was attempted in the burning of the vouchers. Every investigation, including that of Mr. Booth s committee, was a fruit of that possession. So also was the discovery of judicial proofs, in the Broadway Bank; and the col lection of such proofs which continued for eight months afterward, with important results which have not even yet become public. It divided the influence of the city government in the elections, and broke the prestige of the " Ring." EFFOETS OF THE " KING " TO EEOOVEE POSSESSION. Then began a struggle on the part of the "Ring" to force Mr. Connolly to resign, in order that Mr. Green s powers might cease. On the 18th the mayor treated Mr. Connolly s deputation of Mr. OVERTHROW OF THE TAMMANY Green as a resignation ; and then, with singular inconsistency, as sumed to remove Mr. Connolly, though he had lately declared he had no power of removal. The vacancy thus alleged to exist, he, on two incompatible theories, each totally unfounded, proceeded to fill. Early that morning I sought Mr. O Conor. The freedom from doubt of the law was no security. The moral support of his great legal name, affirming the validity of Mr. Green s possession, was neces sary. He examined the statutes, and had no doubt. He consented to reduce his opinion to writing, saying that he would not take a fee, and inserting the explanation that the opinion was given at my re quest. It appeared in the Evening Post of that afternoon. An attempt, under color of judicial process, to forcibly eject Mr. Green, was anticipated. A carriage was waiting to take me to Judge Brady. If a judge could be found to vacate fraudulent orders, as fast as they could be granted, it was well. If not, I had resolved. the next day to open an issue, in advance of the election of the new Legislature a convention to revise the judiciary. Mr. O Gonor s opinion saved that day. Mr. O Gorman, evading the legal question, advised the mayor, as a matter of expediency, to acquiesce in Mr. O Conor s opinion. The plot fell to pieces. But there were men behind the mayor who would not yet give up the struggle. When Keyser alleged that his name on the warrants was forged, the effort was renewed. It was in resisting it that I struck on the clew which led to the revelations of the Broadway Bank. STATE CONVENTION. The contest in the State Convention quickly followed. It is but fair to admit that what I asked the convention to do was more than any party was ever found able to venture upon. It was to totally cut off and cast out from party association a local organization which held the influence growing out of the employment of twelve thousand persons, and the disbursement of thirty millions a year, which had possession of all the machinery of local government, dominated the judiciary and police, and swayed the officers of the election. I still think that, on such an occasion, the greatest audacity in the right would have been the highest wisdom, and, in the long-run, the most consummate prudence. If the convention could not reach that breadth and elevation of action, it nevertheless did help to break the prestige by which the organization expected to enthrall the local masses. For myself, I at no time hesitated to avow, as my conviction 124 THE LIFE OF SAMUEL J. TILDEN. of duty and my rule of action, that a million of people were not to be given over to pillage to serve any party expediency, or to advance any views of State or national politics. OTHEE ACTION. For more than three months I devoted myself to this contest. Whatever seemed, on a general survey of the whole field, necessary to be done, I endeavored to find the best men and best methods to do, and at all events to have that thing accomplished. I addressed the Democratic masses. I constantly pointed out to the public the legislative bodies as the turning-point of the controversy. I entered into an arrangement with Mr. O Conor and Mr. Evarts to go to the Legislature ; and, when events afterward induced them to abandon the intention, I went alone. I invited the meeting at which the re form delegation to the State Convention was originated, and helped to form that delegation. On the eve of the election, when Mr. Wickham, who was chairman of the newly-extemporized Democratic Reform organiza tion, came to me to say that they could not supply booths or ballots without $10,000 beyond what they were able to raise, I agreed to provide it, and did so. With the aid of Mr. Edward Cooper, I raised from personal friends, including my own contributions, for the legiti mate purposes of the contest, about the same sum which I understand the Committee of Seventy collected from the whole community for similar purposes. BEOADWAY BANK INVESTIGATIONS. These investigations furnished the first, and, for a long time, the only judicial proof of the frauds. They occupied me and some four or five clerks and assistants, about ten days. The analysis of the re sults, and their application as proof, were made by myself, as well as the original discovery of the relation of the numbers which was the clew to all the revelations. The Times seems to ascribe the collection of judicial proof to Mr. Booth s commi ttee. This is an entire error. Nothing of the kind was attempted by that committee. The value of their report was in its exhibition of the accounts of payments from the Comptroller s office. It did not trace any share of the money to any public officer. That Mr. Booth was allowed to inspect the accounts was due to the possession of the Comptroller s office by Mr. Green. OVERTHROW OF TEE TAMMANY "RING." 125 This information obtained from the Broadway Bank established the fact that but one-third of the nominal amount of the bills had ever reached the persons who pretended to be entitled to the pay ments, and that two-thirds had been divided among public officers and their accomplices ; and it traced the dividends into the actual possession of some of the accused parties. It converted a strong sus picion into mathematical certainty, and it furnishes judicial proof against the guilty parties. On this evidence, and on my affidavits verifying it, the action by the Attorney-General was founded. SPEECH AT COOPEE INSTITUTE. At the great " Reform " meeting at the Cooper Institute, I made a speech advocating a union of all the elements opposed to the "Ring," without reference to State or national politics. This was done while I was the official head of the State organization of the Democratic party. My action was regarded as questionable by some good men who judged it by the ordinary standard of political parties. All the secret allies of the " Ring " throughout the State were employed, aided by most of the Executive patronage, in accusing me of sacrificing the success of the State ticket and the supremacy of the Democratic party in the State to .my effort to overthrow the " Ring." Complaints were inspired from high quarters that I had not kept back the Broad way Bank disclosures and deferred the action by the Attorney-General until after the election. This was the basis of an organized move ment against me in the Assembly, continued and renewed for a whole year throughout the State. My own opinion was, and is, that the most vigorous and effective measures were necessary to overthrow the corrupt dominion over this city ; that if they had not been taken with boldness, the immense power which has been created by the legislation of 1870 the whole local government machinery with its expenditure and patronage, and its employment of at least twelve thousand persons, and its possession of the police, its influence on the judiciary, its control of the inspectors and canvassers of the elec tions, would have enabled the "Ring " to hold a majority in the city, and would have defeated all adverse legislation at Albany. And while I never hesitated to avow that the emancipation of our million of people was not to be made secondary to any other object by a citizen and elector of this city, I thought and still think the timid and false policy I was assailed for not adopting if I know aright the many high-minded and independent gentlemen of the in- 126 THE LIFE OF SAMUEL J. TILDEN. terior who would not have brooked any compromise with wrong would have been far more disastrous to the State ticket in that elec tion, a,nd would have permanently compromised the Democratic party. It is to the eternal honor of the Democratic masses of this State that, on the issues thus made with me successively for a whole year, they gave me an overwhelming support. \ DEMOCRATIC KEFOKM VOTE IN THE CITY. \f How largely the redemption of the city was due to the Democratic I masses is easily shown. The vote for "Willers, the Democratic can didate for Secretary of State, was 83,326. His majority was 29,189. The vote for Sigel, the Union Reform candidate for Register, was \ 82,565. His majority was 28,117. Willers s vote was nearly 1,000, and his majority more than 1,000 the larger. It follows that 28,653 Democrats who voted for "Willers, also voted for Sigel. Even that does not show the whole Democratic contribu- fl tion to the Reform victory. For at least 10,000 or 12,000 Democrats u dissatisfied that the State Convention had not gone further than it I did voted the Republican State ticket. The whole Democratic vote j:Castfor Sigel was little short of 40,000, against the 42,500 he received I from all other sources. The result so much more overwhelming , than was expected by the public not only changed the city represen- 1 fcation in the legislative bodies of the State, but, in its moral effect, Crashed the "Ring." So far from true is it that the "battle " was " over," as the Times alleges when I entered it, the battle was not over till the polls closed. Even to the night before the election, general despondency prevailed. All through the contest, it was difficult to inspire the local politicians with confidence in our chances of success. Many, whose sympathies, interests, and resentments, were with us, held back, and some aban doned us at a late period. The Republicans in the city had little hope. The belief was general in the city and State, and among all parties, even to the election, that we should fail, and that the "Ring" would hold a majority. FUETHEB COLLECTION OF PEOOFS. After the election, it was urged by Mr. O Conor, Mr. Havemeyer, and Mr. Green, that I ought to continue the investigations by which the judicial evidence of the frauds should be collected and preserved ; OVERTHROW OF THE TAMMANY "RING." 127 that this work was more important than even the preparation of leg islation. In deference to their views, I gave my time to the work, during all the six weeks, until the legislative session commenced, and in every interval at my command for many months afterward. When the investigations commenced, there were no means by which disclosure could be compelled, that were not in the hands of the ac cused parties, except a grand-jury, whose sessions were prolonged for several months. A vast mass of accurate information has been col lected and preserved, which is the basis of nearly all judicial proofs that have been obtained. JUDICIAL KEFOEM. It was the opinion of our best men, as it was my own, that a re form in the administration of justice, as it was carried on in this judicial department of the Supreme Court, was not only intrinsically the most important to the welfare, safety, and honor of our commu nity, but was a measure without which every other reform would prove nugatory; and that the opportunity of effecting it at the last session could not be allowed to pass unimproyed without leaving us for an indefinite period subject to the intolerable evils and scandals which had recently grown up, and to the world-wide disrepute they had occasioned. As a citizen and a lawyer trained amid better standards I had seen the descent of the bench and the bar with in expressible concern. I had often questioned, with Mr. O Conor, whether those of us at the bar who had ceased to be dependent for a livelihood upon professional earnings, ought not to feel ourselves under a Providential call, on the first opportunity, to open to the younger members of the profession a better future than that which was closing in upon them a future in which personal and profes sional honor would not be incompatible with pecuniary success. I had advised a son of Francis Kernan, who came here to begin a ca reer, to return to Utica rather than confront the degrading competi tion to which a young man would be exposed. In the heat of an extemporaneous speech, at the Cooper Institute, I had become com mitted to this cause. It seemed to me a paramount duty to press a movement for that object with all the concentration and persistence requisite to success ; and there never was a moment, by day or night, during all the ses sion, when any thing which it was possible to do could be safely 128 THE LIFE OF SAMUEL J. TILDEN. omitted. There were several periods of general despondency, and frequent crises in which the cause had to be rescued. It early came to the knowledge of Mr. Peckham, Mr. O Conor, and myself, that a large fund was attempted to be raised for the pur pose of corrupting the committee and the Assembly, in the interest of the accused judges. Even after the impeachment was adopted by the Assembly when general despair was felt at the choice of man agers the lost ground was promptly recovered by a measure initiated by myself. It was an arrangement by which the selection of counsel was to be satisfactory to the Bar Association. Attention to the completion of this object, to the conduct of the suits which had been commenced, to the gathering in of the fruits of the investigations, and to other accessory work necessary to finish the original undertakings, occupied most of the summer. CONCLUSION. On the whole, I have given sixteen months of time to these public objects, with as incessant and earnest effort as I ever applied to any purpose. The total surrender of my professional business during that period, the nearly absolute withdrawal of attention from my private affairs, and from all enterprises in which I am interested, have cost me a loss of actual income, which, with the expenditures and contributions the contest has required, would be a respectable endowment of a public charity. The surrender of two summers, after I had shaped all my engagements to take my fir.st vacation in many years, was a serious sacrifice. I do not speak of these things to regret them. In my opinion, no instrumentality in human society is so potential in its influence on the well-being of mankind as the governmental machinery which ad ministers justice and makes and executes laws. No benefaction of private benevolence could be so fruitful in benefits as the rescue of this machinery from the perversion which had made it a means of conspiracy, fraud, and crime, against the rights and the most sacred interests of a great community. The cancer which reached a head in the municipal government of the metropolis, gathered its virus from the corrupted blood which pervades our whole country. Everywhere there are violated public and private trusts. The carpet-bagger governments are cancers on the body politic, even more virulent than the New York " Ring.") I felt impelled to deal Avith the evil here, because an offense OVERTHROW OF THE TAMMANY "RING." 129 which is directly before one s eyes is doubly an offense, and be cause it was within our reach ; while to renovate government through out the United States is a work of great difficulty, taking time, large hope of the future, and long-continued efforts toward reformation. If the world cannot be changed, it is something to make one s own home fitter to live in. A reaction must begin somewhere. I have not lost hope that free government upon this continent may yet be saved. I remem ber that nations have experienced great changes for the better, in manners and in morals, after long periods of decay. There are some good signs in our own horizon. Last month, when a gigantic con troversy of the stock-market reached the courts, none of the jour nals inquired, " Which side owns the judge ? " At any time within the last three years that would have been the only theme. The money-articles have ceased to treat their readers to admiring discussions of the relative dexterity with which men of colossal cap itals first citizens of the metropolis representatives of its moneyed aristocracy contend with each other in feats which have a moral aspect about like cheating at cards. Since the swell of the paper- money afflatus in 1863, the absence of such discussions is a refresh ing novelty at our breakfasts. Even on the cheek of a member of Congress begins to rise a delicate hue of doubt in being discovered to have had a pecuniary interest in a public question on which he has voted. Amid Hie blackness of successful wrong which over spreads the whole heavens, are these little gleams of a revival of the public conscience. If its growth shall be as steady, as rapid, and as persistent as has been its decay during the last ten years, everywhere throughout the country will come revolutions of measures and of men. If the w r ork to which I have given so freely, according to the measure of my abilities, shall stand, I will not compete for its hon ors, nor care for falsehood or calumny concerning the part I have borne in it. If it is to fail once more if the people of this metropolis if the Eepublican citizens of culture and property, whose interests are deeply involved in a good municipal government, and who are now to show whether they will stand against bad measures in their own party shall shamefully consent to a repetition of the fraudulent de vices of the Tweed charter of 1870 theirs, not mine, will be the re sponsibility. S. J. TILDEF. NEW YOKK. January 27, 1873. CHAPTER XV. ELECTED GOVERNOR OF NEW YORK. 1874. BRIEF reference is made in Mr. Tilden s account of the overthrow of the Tammany " Ring" to his services in the Legis lature of New York in 1872. In a speech before the Bar Association on the 28th of May in that year he alluded to the subject as follows : "While what has been done toward purifying the judiciary is just cause of congratulation, you will appreciate the difficulties through which it has been obtained if you reflect that everything else in the way of reform has failed. It is known to you that when I consented to go to the Assembly it was with a view to the judicial reform, and to certain other measures more particularly interesting the people of this city ; and that, in that work, I expected the cooperation in the Legislature of Mr. O Oonor and Mr. Evarts. This arrangement was defeated by subsequent events. L believed that it was necessary to concentrate myself upon a very few measures in order to accomplish anything. The general demoralization growing out of the civil war and paper- money had produced wide-spread effects. The corrupt power which had just been overthrown in this city had its origin in a partnership of plunder between men nominally of different politics, but, in fact, of no politics at all ; and had established extensive affiliations through out the State in both parties and in both branches of the dominant party, which now possessed three-quarters of the Legislature. It had been necessary to the system that the Capitol should be sur rounded by an atmosphere of corruption. The ambition of some had been tempted; the interests of more had been addressed by making legislative business profitable, and the golden showers had sprinkled benefits in every direction. Some, even, who would not take an actual part in the saturnalia, were content to be silent spec- ELECTED GOVERNOR OF NEW YORK. 131 tators or consenting witnesses. I never for a moment supposed that the knife and the cautery would be agreeable remedies, or that the silent partners of prosperous criminals would fall in love with those whose duty it is to detect and punish. I knew, therefore, that ob structions, under every pretext, were to be met at every step, and to be overcome. To this a word may be added. The Legislature of 1872 was either a very weak or a corrupt body. The notorious Thomas C. Fields, now a fugitive from justice, was a member thereof. He was awarded a higher place in the committees, and received much more consideration at the hands of the Republican majority, than Mr. Tilden. In the Senate sat five of those six men who, according to Judge Noah Davis (who sentenced Tweed), had received ten thousand dollars apiece from Tweed himself. A lobbyist who ought, to know says that votes were never before so cheap nor members so greedy as they were that year. Several legislative scandals were un earthed by the newspapers, but none by either House of its own free-will. Tweed was a member of the Senate that year, but did not take his seat. Months elapsed before any ear nest effort was made to expunge his name from the roll, and then he resigned. The busybodies have discovered that, during the session, Mr. Tilden missed more roll-calls than he attended. But they neglect to add that he was engaged in his work the purification of the judiciary against tremen dous odds. If those who attended the roll-calls had been equally faithful to their duties, it would have been well. During the summer of 1873, Mr. Tilden made a trip to Eu rope. It was the first rest that he had enjoyed for twenty years. During his absence, the Democratic Convention assembled, and again made him chairman of the State Committee, an unexpected arid unsought compliment to one who had an nounced that he should be away from the country during the canvass. In 1874, when the Democrats were casting about for a candidate for Governor, some zealous friends of administrative 132 THE LIFE OF SAMUEL J. TILDEN. reform suggested the name of Mr. Tilden. He was so entirely out of the line of office-holders that, though he was not a young man, he was a new man. Two questions arose : The timid asked, " Can he carry the State with his record of ugly, aggressive honesty ? Will not the remnants of the old Tam many Ring prove strong enough to defeat him ? " Braver souls simply inquired, " Will he accept a nomination ? " This was really the matter of doubt. He had been working with unflagging industry for thirty years, and had acquired fortune and fame, and a high and honorable name. He was the trusted counselor of many men who were themselves the favorites of the people. In his comparative retiracy he could enjoy such comfort and peace as never fall to the share of a public official, and, at the same time, he could exercise a strong and potent influence on affairs. It was the beguilement of per sonal comfort which held him back, and the whip of duty which drove him on. And he consented to become the candi date of the party. The professional politicians were a good deal astonished as the canvass, preceding the convention, advanced. Here was a man past middle age, who had never sought an office in his life, who was not supposed to have any personal follow ing, who lacked the quality which men call magnetism, who could not or did not stir the multitude by appeals to their pas sions, and who had made enemies in every quarter by speak ing his thoughts, when silence seemed the discreet if not the manly policy. As one county after another wheeled into line and instructed its delegates to vote for Mr. Tilden, the aston ishment of the politicians increased. They thought some oc cult influence was at work in his favor that his friends were practising a sort of legerdemain. They wanted him to with draw, that they might " harmonize " on somebody else. They began to get frightened. . The convention assembled at Syracuse, on the 16th of Sep tember, 1874. Under a rule adopted the previous year, each Assembly district sent three delegates instead of one, as had ELECTED GOVERNOR OF NEW YORK. 133 been the custom. The convention was, therefore, the largest ever held by the Democrats in the State of New York. When the time came for the presentation of candidates, Horatio Sey mour rose on the floor of the convention, and, in a brief but very forcible and eloquent speech, named Samuel J. Til den for Governor of New York. Loud cheers followed the an nouncement of the name, and, in continued applause, the dele gates and audience sought to express their appreciation of the coming candidate, and of the distinguished statesman who had nominated him. Judge Amasa J. Parker, of Albany, was also named for Governor. He had been the candidate of the party in 1856, and again in 1858. He enjoyed the personal respect of all the delegates, but he seemed to stand as the representa tive of the more timid section of the party, and courage was the duty of the hour. Mr. Tilden swept the convention by a vote of more than two to one. On the evening of his nomination he was tendered a sere nade, and in response he made the following speech : FELLOW-CITIZENS : I thank yon for the honor you do me in the midst of this storm. . I know it is the cause, more than its repre sentative, that calls out this manifestation of interest and enthusiasm. "Well may it. A peaceful revolution in all government within the United States is going on to a sure consummation. Ideas of change pervade the political atmosphere. They spring up from the convictions of the people. The supporters of the Administration have lost confidence in it and in themselves. The opposition become more intense in their convictions and in their action. Multitudes pass over from sup port to opposition, or sink into silent discontent. Are we asked the causes? The answer is found in the condition of our country. The fruits of a false and delusive system of govern ment finances are everywhere around us. All business is in a dry rot. In every industry, it is hard to make the two ends meet. In comes are shrinking away ; and many hitherto affluent are becoming anxious about their means of livelihood. Working-men are out of employment. The poor cannot look out upon the light or air of heaven but they see the wolf at the door. 134 THE LIFE OF SAMUEL J. TILDEN. Inflation no longer inflates. Even while paper-money is swelling out a new emission, values sink. Bankers balances in the monetary centres are increased, and call loans are cheaper ; but those who need more capital can neither buy nor borrow any of the forty-four millions of new greenbacks. The truth is, that our body politic has been over- drugged with stimulants. New stimulants no longer lift up the lan guid parts to a healthy activity. They merely carry more blood to the congested centres. One thing only remains in its integrity ; that is our taxes. Amid general decay, TAXATION puts out new sprouts and grows luxuriantly. "It seats itself " if I may borrow a figure from the greatest of our American poets "... upon the sepulchre And of the triumphs of its ghastly foe, Makes its own nourishment." National taxes State taxes county taxes town taxes muni cipal taxes. The collector is as inevitable as the grim messenger of death. Incomes, profits, wages ; all these fall, but taxes rise. Six years ago, I had occasion to say that while values were ascend ing, and for some time after, it might be easy to pay these taxes out of the froth of our apparent wealth ; but that, when the reaction of an unsound system of government finance should set in, the enor mous taxation which that system had created would consume not only our incomes and profits, but trench upon our capital. What was then prediction is now experience. KETKENCHMENT in public expenditure ; reform in public admin istration ; simplification and reduction of tariffs and taxes ; ACCOUNT ABILITY of public officers, enforced by better civil and criminal rem edies. The people must have these measures of present relief meas ures of security for the future. The Federal Government is drifting into greater DANGEKS and greater EVILS. It is rushing onward in a career of centralism, ab sorbing all governmental powers, and assuming to manage all the affairs of human society. It undertakes to direct the business of indi viduals by tariffs not intended for legitimate taxation, granting special privileges and fostering monopolies at the expense of the people. It has acquired control of all banks ; it has threatened to seize on all the telegraphs; it is claiming jurisdiction of all the railroad corporations chartered by the States, and amenable to the just authority of the States. It is going on to usurp control of all our schools and col- ELECTED GOVERNOR OF NEW YORK. 135 leges, stretching its drag-net over the whole country, and forcing edi tors and publishers away from their distant homes into the courts of the District of Columbia. It is subjecting the free press of the whole United States, for the criticism of the Administration, to trial by the creatures of the Administration, acting under the eye of the Admin istration. It dared to enforce this tyranny against a free man of the metropolis of our State. These tendencies must be stopped, or, before we know it, the whole character of our Government will be changed. The simple and free institutions of our fathers will have become the worst Gov ernment that has ever ruled over a civilized people. It will be the most ignorant. A distinguished Eepublican states man (I mean Senator Oonkling) lately told me that more than 5,000 bills were before Congress at its last session. In a little time, as we are now going on, there will be 20,000. Nobody can know what is in them. We have a country eighteen times as large as France, with a pop ulation of 43,000,000, doubling every thirty years, and full of activi ties and interests. A centralized Government, meddling with every thing and attempting to manage every thing, could not know the wants or wishes of the people of the different localities, and would be felt only in its blunders and its wrongs. It would be the most irresponsible, and therefore not only the most oppressive, but the most corrupt with which any people have been cursed. To-day the advances which we have made toward this system are maturing their fatal fruits. The Federal Administration is tainted with abuses, with jobbery, and with corruption. In the dominion which it maintains over the reconstructed Southern States, organized pillage on a scale tenfold larger than that of the Tweed " Ring " is the scandal and shame of the country. Civil liberty is endangered. It is now certain that President Grant nourishes the bad ambition of a third term. If the sacred tradition established by Washington, Jefferson, Mad ison, and Jackson can be broken, the President may be reflected in definitely, and, wielding from the centre the immense patronage which will grow out of such vast usurpation of authorities by the Federal Government, he would grasp the means of corrupt influence by which to carry the elections. There will be no organized thing in the country of sufficient power to compete with him or to resist him. 136 THE LIFE OF SAMUEL J. TILDEN. The forms of free government may remain, but the spirit and sub stance will be changed. An elective personal despotism will have been established. Roman history in the person of Augustus Caesar will be repeated. Thoughtful men are turning their minds to the means of escape from the overshadowing evils. The Republican party cannot save the country. Ideas of governmental meddling and centralism domi nate over it. Class interests hold it firmly to evil courses. Throngs of office-holders, contractors, and jobbers, who have grown up in fourteen years of its administration in four years of war and during an era of paper-money are too strong in the machinery of the party for the honest and well-intending masses of the Republicans. The Republican party could contribute largely to maintain the Union dur ing the civil war. It cannot reconstruct civil liberty and free institu tions after the peace. A change of men is necessary to secure a change of measures. The opposition is being matured and educated to take the Administration. The Democracy, with the traditions of its best days, will form the nucleus of the opposition. It embraces vastly the larger body of men of sound ideas and sound practices in political life. It must remove every taint which has touched it in evil times. It must become a com pact and homogeneous mass. It must gather to its alliance all who think the same things concerning the interests of our republic. It is becoming an adequate and effective instrument to reform the Admin istration and to save the country. It reformed itself in order that it might reform the country, and now, in your name and in the name of the five hundred thousand voters whom you represent, we declare that in this great work we will tread no step backward. Come weal or come woe, we will not lower our flag. "We will go forward until a political revolution will be worked out and the principles of Jefferson and Jackson shall rule in the Administration of the Federal Government. Let us obey the patriotic maxim of old Rome, " Never to despair of our country." Actual evils can be mitigated. Bad tendencies can be turned aside. The burdens of government can be diminished. Productive industry will be renewed, and frugality will repair the waste of our resources. Then shall the golden days of the republic once more return, and the people become prosperous and happy. A- week later, on the 23d of September, the Republican ELECTED GOVERNOR OF NEW YORK. 137 Convention assembled at Utica, and with perfect unanimity renorainated General Dix for Governor. He had been elected in 1872 by a majority of 55,451. He had seemed to gain rather than to lose in popularity during his term. He had ad ministered his office well, so far as its ordinary or routine duties were concerned. He was a man of venerable age and extended experience. As early as 1830 Mr. Hammond, in his " Political History of New York," wrote of him as fol lows : " When the office of Adjutant-General became vacant by the death of General Beck, Governor Throop appointed Major John A. Dix, of Cooperstown, who had been one of the aides of General Jacob Brown. Mr. Dix was, I believe, a native of New Hampshire. He had been regularly educated at one of the Eastern colleges, and is justly distinguished for his classical knowledge and literary attainments. He is an accomplished and able writer. He was at Washington, in the family of General Brown, in 1824- 25, and, so long as Mr. Calhoun was a candidate for the presidency, Mr. Dix, in common with most of the gentlemen of the Army, was his zealous friend and supporter. Not long after the election of Mr. Adams he married the daughter of a wealthy and re spectable citizen of New York, and came to reside in this State. Soon after he came here he manifested a determina tion to support the party then in the majority in the State, and has ever since acted zealously with that party." During his long subsequent career General Dix had done nothing to forfeit this high opinion of a distinguished writer, and he was justly held in esteem by those with whom he had acted politically. Most of the Republicans, and some Democrats, affected to believe, or did believe, that the Democratic party had made a mistake in placing Mr. Tilden in nomination. No body questioned either his honesty or his talents. The dis cussion turned, as it had turned before the convention, on the question of his availability. The general excellence of Governor Dix s administration was enlarged upon by the Re- 138 THE LIFE OF SAMUEL J. TILDEN. publican press, and apparently with effect. But weeks be fore the election came, early in the month of October, the Democrats began to gather hope, they hardly knew why nor from -where. The feeling grew through the State, reaching out beyond the limits of the party to which he belonged, that Mr. Tilden was a safe leader that he could effect cer tain reforms in administration which had been too long neg lected. Moreover, the Democrats showed signs of strength elsewhere. Their victory in Ohio, in October, was particu larly cheering to their brethren in New York. It was not, therefore, a surprise to the people when it was announced on the morning after the election that Mr. Tilden had been chosen Governor of the State of New York. But the mag nitude of his majority astonished everybody. He received 416,391 votes, while Dix received 366,074, showing a plural ity for Tilden of 50,317. Governor Tilden was inaugurated on the first day of Janu ary, 1875. Before taking the oath of office Governor Dix made a short address, to which Mr. Tilden briefly responded. In the course of his remarks he alluded in a feeling manner to the friendship which had existed between him and Silas Wright. He might have added that, up to the time of Gov ernor Wright s death, General Dix was also among his most active supporters. It was Dix who read, at Saratoga Springs, the agricultural address on which Silas Wright was engaged the night before he died. CHAPTER XVT. FIRST ANNUAL MESSAGE. THE Legislature of New York in 1875 was divided politi cally between the two parties. The Republicans had a ma jority in the Senate and the Democrats a majority in the Assembly. It was certain, therefore, from the first that no strictly party measure could pass. Either House could act as a check upon the other, so far as politics went. Over the action of both, the Governor would exercise considerable in fluence by reason of the enlarged powers conferred upon him under the amended constitution in respect to the vetoing of items in appropriation bills. This power brought with it a heavy responsibility, for it made him ultimately responsible for any extravagance into which the State might fall. Mr. Tilden s first annual message was eagerly looked for. He had been elected on the issue of reform. What recom mendations would he make ? Would he justify the high faith of his friends, or lay himself open to the criticism of his enemies ? He was to meet a hostile Senate. Would he prove himself a partisan or a statesman ? He was supposed to entertain extreme views on the question of municipal gov ernment. Would he incorporate those views into his message, and, if he did, how would they be received by the Legisla ture ? These and many similar questions engrossed the pub lic mind for several days before the message was communi cated to the Legislature. It is appended in full because it is one of the state papers on which Mr. Tilden s reputation must hereafter rest. 140 THE LIFE OF SAMUEL J. TILDEN. EXECUTIVE CHAMBER, ) ALBANY, January 5, 1875. ) To the Legislature : At the advent of a new year, when the public bodies assemble, to consult in respect to the affairs, and to transact the business of the State, our first thought should be, to offer up devout thanksgiving to the Supreme Disposer of events, for the blessings which we have enjoyed during the year now closed. Our great Commonwealth comprises a population of more than four and a half millions large ly exceeding that of the whole United States at the formation of the Federal Government and embracing vastly more extensive and diver sified interests and activities. Our sense of duty ought to be com mensurate with the magnitude of the trust conferred upon us by the people. Forming, as our State does, so important a part of the American Union, the benefits of an improved polity, of wise legisla tion, and of good administration, are not confined to our own citi zens, but are felt directly, and by their example, in our sister States, and in our national reputation throughout the world. Mindful, with you, of these considerations, I proceed to perform the duty enjoined by the constitution upon the Governor, to " communicate, by mes sage to the Legislature," " the condition of the State," and to " rec ommend such matters to them as he shall deem expedient." EKCEIPTS AND EXPENDITURES. The receipts into and payments from the Treasury, on account of all the funds, except the Canal and Common-School Funds, for the fiscal year ending September 30, 1874, were as follows : Keceipts $26,465,370 43 Payments 19,636,308 36 Balance in the Treasury September 30, 1874.. $6,829,062 07 The available balance amounted to $6,494,881 44 the difference being made up by the defalcation in the State Treas ury in 1873, of $304,957.91, and the sum of $29,222.72, being an old balance due from the Bank of Sing Sing. STATE DEBT. On the 30th September, 1873, the total funded debt was $36,530,- 406.40, classified as follows : FIRST ANNUAL MESSAGE. 141 General Fund $3,988,526 40 Contingent (stock issued to the Long Island Rail road Company) 68,000 00 Canal 11,352,880 00 Bounty 21,121,000 00 $36,530,406 40 During the months of August and September, 1873, stocks of the Bounty Loan were purchased to the amount of $306,000, but not canceled until after September 30, 1873. Deducting this sum, the bounty debt amounted to $20,815,100, and the total debt to $36,224,- 406.40. On the 30th September, 1874, the total funded debt was $30,199,- 456.40, classified as follows : General Fund $3,988,526 40 Contingent 68,000 00 Canal 10,230,430 00 Bounty 15,912,500 00 $30,199,456 40 The actual reduction of the State debt during the fiscal year end ing September 30, 1874, by cancellation of matured stocks, and by the purchase of $4,902,500 of Bounty Loan 7 s of 1877, for the Bounty Debt Sinking-Fund, is $6,024,950. In addition to the $4,902,500 of Bounty Stock, purchased for the Bounty Debt Sinking-Fund during the last fiscal year, and canceled, there have been investments for that sinking-fund, since the date of the last report to the present time, in State securities and Govern ment registered bonds, to the amount of $4,381,500, at a cost of $4,972,091.35 ; add $327,283.88 premium and $3,210 commissions on Bounty Loan Stock purchased and canceled, and $1,421,584, interest on Bounty Debt, makes a total of $11,626,667.23 paid on account of this sinking-fund since the date of last report to the present time. The securities, now held in trust for this sinking-fund, amount, at their par value, to $6,802,944.09, which could be disposed of, at the present market rates, at an average premium of over twelve per cent. The following statement shows the amount of the State debt on the 30th September, 1874, after deducting the unapplied balances of the sinking-funds at that date : 142 THE LIFE OF SAMUEL J. TILDEN. DEBT. Debt on September 30, 1874. Balance of Sinking- Funds on September 30, 18T4. Balance of Debt after applying Sinking-funds. General Fund $3 988 526 40 $4 142 693 84 Contingent 68 000 00 32 823 49 $35,176 51 Canal . 10 230 430 00 1 561 018 99 8 669411 01 Bounty 15,912,500 00 1 7 125 278 20 8,787,221 80 Total $30 199 456 40 $12 861 814 52 $17 491 809 32 The State debt on the 30th September, 1873, after deducting the unapplied balances of the sinking- funds, amounted to $21,191,379 34 On the 30th September, 1874, to. . 17,491 ,809 32 Showing a reduction of $3,699,570 02 TAXES. The State tax levy for the current year amounted to seven and one-fourth mills. The total amount of the tax will be $15,727,482.08, about $900,000 in excess of the amount levied during the preceding fiscal year. OTHEE DEPARTMENTS OF THE STATE. Summary statements in respect to the banks, savings-banks, trust, loan and indemnity companies, insurance companies, quarantine, the emigration commission, common schools, colleges and academies, the State Library and Museum, the National Guard, the soldiers of the War of 1812, the war claims against the United States, the salt- springs, and the State-prisons, are appended. The full reports of the public officers and boards, charged with the special care of these sub jects, will be transmitted as soon as their preparation is completed. Your attention is invited to them, and especially to the report of the Comptroller, which will be submitted at the opening of the session. STATE CENSUS. The constitution provides that an enumeration of the inhabitants of the State shall be taken, under the direction of the Legislature, in the year 1855, and at the end of every ten years thereafter. Chapters 64 and 181 of the laws of 1855, and Chapter 34 of the Deducting interest accrued to October 1, 1874, payable January 1, 1875. FIRST ANNUAL MESSAGE. 143 laws of 1865, which remain in full force, prescribe the manner of taking the enumeration. These acts require the Secretary of State to prepare uniform blank returns and abstracts, for the purpose of taking the enumeration and obtaining statistical information as to population and social statistics, the resources and interests of the State, individual and associated in dustry, agriculture, the mechanic arts, commerce and manufactures, .education, and other information of great value to the statistician and all classes of citizens, and will probably require little or no modifica tion. It will be necessary for the Legislature to make an appropriation to enable the Secretary of State to carry into effect the provisions of the constitution and statutes above referred to. A sum equal to the amount appropriated in 1865 for that purpose, by Chapter 598 of the laws of that year, will probably be sufficient. The Secretary of State has taken preliminary steps toward taking the enumeration, and looks to the Legislature for an early appropri ation, to enable him to go forward with the work. PATJPEEISM. The annual report of the State Board of Charities will be laid before the Legislature, and I commend it to your attention. It will contain the results of a special examination in respect to the condi tion of children in the poor-houses, and the subjects of out-door relief and alien paupers. The laws relating to pauperism need revision and amendment. The growth of the State in wealth and population has brought with it more complex relations between capital and labor, which should be carefully studied, in order that legislation may be adapted to their requirements. I suggest whether it is not advisable that a commission be appointed to investigate and report upon the management and relief of the poor, and to propose such legislation as will tend to relieve the industry of the State from the evils which result from poor-laws, vicious or inadequate in conception, or defec tive in execution. CENTENNIAL EXHIBITION. The celebration of the centennial anniversary of American Inde pendence will occur in the year 1876. Under the auspices of the General Government an international exhibition of arts, manufactures, and natural products, will be held in the city of Philadelphia. Pro- 144 THE LIFE OF SAMUEL J. TILDEN. vision has already been made for the appointment of a board of five commissioners to represent this State, who are to serve without com pensation. I recommend a moderate appropriation of money, which will be required to defray the necessary expenses of the commission, and enable this State to take such part in the exhibition as will testify our sense of the greatness of the event commemorated, and is suit able to the dignity of our commonwealth. CONSTITUTIONAL AMENDMENTS. The adoption of the recent amendments to the constitution ren ders necessary some important legislation in order to carry them into full effect. The changes made in Article II. require corresponding changes in the election laws, with respect to challenges and the oaths thereupon, and the enactment at the present session of a law " ex cluding from the right of suffrage all persons convicted of bribery or of any infamous crime." The amendment of section 4 of Article VIII. of the constitution requires the enactment of a " general law conforming all charters of savings-banks, or institutions for savings, to a uniformity of powers, rights, and liabilities." The addition of Article XV. necessitates the passage of an act pre scribing the punishment for the offense of bribery created in sections 1 and 2. Some legislation may be necessary in consequence of the change in the mode of compensating members of the Legislature, and in some other matters which will readily occur to you. The section added to Article III. as section 18 requires the pas sage of general laws, providing for the cases in which special legisla tion is prohibited by that section. Many of these cases are within existing general laws, and, with respect to several others, no imme diate legislation seems to be required. Doubtless, however, some legislation is expedient, either in the way of enacting statutes provid ing for the cases to which the existing statutes do not apply, or in the way of amendments to existing statutes. The provision prohibiting special legislation in the cases specified is the amendment from which the largest benefits have been antici pated. In framing the general laws which are to provide for these cases great caution will be necessary. The part I took in the con vention of 1846, and even before the enactment of the general bank ing law of 1838, in advocating the principle of general laws in its application to the creation of corporate bodies which have been prac- FIRST ANNUAL MESSAGE. 145 tical monopolies, and to other cases where it seemed to be safely ap plicable, may justify me in suggesting some qualification of the ad vantages to be derived from the change, unless it be accompanied by especial foresight and wisdom. It will doubtless be an unavoidable necessity to modify existing general laws, and to shape new ones to be enacted with reference to special and peculiar cases. It is quite possible to give a general form to the phraseology of every enactment intended to apply to a special case, and to operate as a special grant of powers. The benefit intended to be secured by the prohibition may thus be defeated. Even greater mischiefs than those which existed under the old system may be created. The parties interested in promoting a law intended to obtain special powers for a particular case cannot be relied on to guard against the possible operation of the general provision in the other cases to which it may be applied. The legislators, who could meas ure the whole consequences of an act limited in its terms to a special instance, cannot foresee the possible cases to which a general law adapted to the instance present to his mind may be found capable of applying, or what operation it may have. There will, therefore, be great danger of vague, loose, and hasty legislation in contemplation of one object, but capable of workipg in numerous cases results neither foreseen nor intended. The new legislation called for by this provision should be framed with more than ordinary care. FEAUDS AND MALVERSATION BY PUBLIC OFFICERS. It will be the first and most imperative of our duties to revise the laws which are intended to provide criminal punishment and civil remedies for frauds by public officers, and by persons acting in com plicity with them. The condition of- our existing statutes and of our unwritten law, as its provisions for such cases have been construed and declared by recent decisions of the court of final resort, discloses grave defects. The practical evils resulting from these defects are greatly increased by the recent frequency and magnitude of violations of official trust. IMPERFECTION OF CRIMINAL LAWS. The statutes punishing embezzlement are held not to apply to such offenses when committed by public officers. The statutes relat- 7 146 THE LIFE OF SAMUEL J. TILDEN. ing to larcenies are deemed to be of questionable application to a fraudulent acquisition of public funds, existing in the form of credits inscribed on the books of a bank, and known in the language of com merce as deposits. The statutes in regard to obtaining money or property by false pretenses are not free from technical embarrass ments in their application to public frauds. Without assenting to the conclusion that these statutes are wholly unavailable in such cases, it cannot be doubted that they are inadequate, unfit for the exigencies of the times, and that they abound in needless technical questions which tend to the defeat of public justice. No illustration of these defects can be so impressive as cer tain facts of recent experience. A public officer designated by statute of the State, and authorized, with two others, to audit the then existing liabilities against the county of New York, fraudu lently made an audit, or certified to an audit not made, of fictitious claims to the amount of six millions of dollars, and instantly received a million and a half of the money paid on such audits, through a common agent between himself and the pretended owners of the claims. For this flagrant crime, accompanied by many circumstances of aggravation, the eminent counsel who represented the people deemed it prudent to seek convictions only for misdemeanors in neg lect of official duty, the punishment for each of which is imprison ment in the penitentiary for a term not exceeding one year, and a fine not exceeding two hundred and fifty dollars. "When we consider that a person, who, under the temptation of pressing want, steals property of the value of over twenty-five dollars, is liable to im prisonment in the State-prison for a term of five years, and that the other offense^ against private property are punishable with corre sponding severity, the inadequacy of the law applicable to great pub lic delinquents, betraying the highest trusts, and plundering the peo ple on a grand scale, is revolting to all just notions of morality and justice. RECOMMENDATIONS. * I recommend the enactment of a statute which shall clearly em brace such offenses, and impose penalties upon them proportionate to their moral turpitude and to the mischief which they inflict upon society. It can apply only to future cases ; but it may be expected to do something toward preventing a recurrence of such evils. FIRST ANNUAL MESSAGE. CIVIL EEMEDIES. The existing civil remedies applicable to such cases are no less inadequate. For the last three years the spectacle has been ex hibited, on the conspicuous theatre of our great metropolis, of fraudu lent officials remaining in quiet possession and making unobstructed dispositions of great wealth, which we are morally certain was de rived from their spoliation of public trusts, notwithstanding legal proof of the most conclusive nature exists of their guilt. In the mean time, civil actions have been dragging their slow length along, as in ordinary cases of disputed rights, while the "law s del-ay" has been maintained by the use of the vast fund abstracted from the public, and no process has been found in our laws by which it could be attached and preserved pending the litigation, or its disposition interfered with before final judgment. RECOMMENDATION. A bill to extend to such cases the remedy of attachment as in case of foreign corporations, or non-resident, absconding, or concealed defendants, has been heretofore submitted to the Legislature. I trust that such a measure will be speedily adopted. I recommend, further, that preference be given to such cases in the courts, who ever may be the party plaintiff. A GEEAT DEFECT IN OUE JURISPRUDENCE. A still more serious defect exists in our jurisprudence. Where a wrong is committed, which affects the treasury of a city, county, town, or village, the officers who would be the proper plain tiffs in any suit for redress, or who possess exclusively the power to institute or conduct such suits, may be themselves the wrong-doers, or be in complicity with the wrong-doers. In every such case, the remedy must, of course, be very much embarrassed, if not wholly unavailing. The unfaithful incumbents may be entitled to serve for a long term, or they may possess great facilities for gaining the favor of their successors. While the remedy is thus delayed perhaps for years the proofs may be lost ; or the depredators may make away with their property, and withdraw their persons from the reach of process ; or they may, through the lapse of time, become discharged from liability by the statute of limitations. As the offense becomes stale, the public sentiment, which inspires voluntary efforts of patri- 148 THE LIFE OF SAMUEL J. TILDEN. otic citizens in behalf of the people to seek redress, is wearied and weakened. On the other hand, temptations are strengthened and developed into actual crimes by the prospect of impunity, which grows out of tardiness and uncertainty in the remedial law. ATTEMPTS TO EEMEDY THAT DEFECT. The frequent occurrence of malversation in local governing offi cials has. stimulated ingenuity to devise some judicial remedy. At first it was conceived that the injured tax-payers or inhabitants might, in their own names, invoke judicial aid. An analogy was set up to the case of a private corporation in which a corporator, on the omission of the directors to sue, might bring an action, in behalf of himself and his associates, making the corporate body a defendant. The idea received much favor from the courts in the judicial district which comprises the city of New York. But the Court of Appeals in Roosevelt vs. Draper, and in Doolittle vs. Supervisors of Broome County, decided that the individual tax payer had no special interest distinct from that of the public, which would enable him to sustain an action, in person, for the redress of a public wrong of the nature involved in those cases. In the former case, the intimation was made that the true " remedial process against an abuse of administrative power tending to taxation is furnished by our elective system, or by a proceeding in behalf of the State " in the latter, that " for wrongs against the public, the remedy^ whether civil or criminal, is by a prosecution instituted by the State in its politieal character, or by some officer authorized by law to act in its behalf." The whole reasoning of the court proceeded upon this ground, nor does it seem to have been questioned by the counsel on either side. The remedy intimated in these decisions has been recognized as established law in Great Britain, from which we inherit our equity jurisprudence, by a series of great precedents. It has been applied to populous municipalities like Liverpool, and to corporate funds derived from taxation, and applicable to general municipal purposes. It is a natural deduction from the historic origin and the expansive philosophy of the equity system, whose proud boast has ever been that it leaves no wrong without a remedy. On the discovery in 1871 of the frauds committed by the govern ing officials of the municipality of New York, the Attorney-General, acting on these intimations of our own courts, and on the English FIRST ANNUAL MESSAGE. 149 precedents, instituted actions against the parties inculpated by posi tive proofs. "Within the last year the Court of Appeals, in the cases of The People vs. Tweed, Ingersoll et al., and of The People vs. Fields, has decided that the State cannot maintain those actions. The result is at last arrived at, that neither the tax-payer, nor the State in his behalf, can seek redress ; that, in all the long interval, nobody has been competent to sue or conduct a suit, except some corporation counsel who was an appointee of the accused parties. This is a state of our jurisprudence which calls for new legislation. NEW LEGISLATION. In choosing between the two expedients of vesting the right to sue in the individual tax-payer or in the State, it is obvious that the latter should bo preferred. The existing statutes intended to confer some limited rights on the individual tax-payer, are practically nuga tory. The reasoning of the Court of Appeals, in the cases denying him the right under our customary jurisprudence or the common law, argues with cogency the inconveniences which might attend the possession of such a power by every member of so multitudinous a body. The wiser alternative is to vest the power in the people of the State, acting by their Attorney-General. It will be analogous to the authority which exists in respect to private corporations and in cases of nuisances, and of quo warranto, and will be in conformity to the safe methods and traditional usages of equity jurisprudence. LOCAL 6ELF-GOVEENMENT. The establishment of such a remedy for the injured tax-payer or citizen will not detract from, but will make possible, and will found on a durable basis, local self-government. Human society will strug gle, like everything that lives, to preserve its own existence. When abuses become intolerable, to escape them it will often surrender its dearest rights. All the invasions of the rights of the people of the city of New York to choose their own rulers and to manage their own affairs which have been a practical denial of self-government for the last twenty years have been ventured upon in the name of reform, un der a public opinion created by abuses and wrongs of local adminis tration, that found no redress. When the injured tax-payer could discover no mode of removing a delinquent official, and no way of holding him to account in the courts, he assented to an appeal to the 150 THE LIFE OF SAMUEL J. TILDEN. legislative power at Albany ; and an act was passed whereby one functionary was expelled, and by some device the substitute selected was put in office. Differing in politics as the city and State did, and with all the temptations to individual selfishness and ambition to grasp patronage and power, the great municipal trusts soon came to be the traffic of the lobbies. It is long since the people of the city of New York have elected any mayor who has had the appointment, after his election, of the important municipal officers. Under the charter of 1870, and again under the charter of 1873, the power of appointment was conferred on a mayor already in office. There has not been an election in many years in which the elective power of the people was effective to produce any practical results, in respect to the heads of departments in which the actual governing power really resides. A new disposition of the great municipal trusts has been gener ally worked out by new legislation. The arrangements were made in secret. Public opinion had no opportunity to act in discussion, and no power to influence results. Inferior offices, contracts, and some times money, were means of competition, from which those who could not use these weapons were excluded. Whatever defects may sometimes have been visible in a system of local self-government, under elections by the people, they are infinite ly loss than the evils of such a system, which insures bad government of the city, and tends to corrupt the legislative bodies of the State. A popular election invokes publicity discussion by the contend ing parties opportunity for new party combinations, and all the methods in which public opinion works out results. OFFICIAL ACCOUNTABILITY A CONDITION OF MUNICIPAL INDEPENDENCE. No part of the civic history of this State is more instructive than the recorded debates of the convention of 1821, on the question of electing, by the voters of the counties, the sheriff, who is the execu tive arm of the State. It was thoughtfully considered by our fore most statesmen. Its solution embraced the two ideas the selection by the locality, and the removal for cause by the State. The conven tion of 1846 carried its dispersion of the power of choosing local offi cers much further, on the same system. That system is to distin guish between the power of electing or appointing the officer and the power to hold him to account. It is, while dispersing the one to the localities, to reserve the other to the State, acting by its general FIRST ANNUAL MESSAGE. 151 representatives, and as a unit ; to retain in the collective State a supervisory power of removal, in addition to whatever other account ability may result to the voters or authorities of the locality, from the power to change the officer at the expiration of his term, or from special provisions of law. The two ideas are not incompatible. On the contrary, each is the complement of the other. Such dispersion of the appointing power has become possible, only because these devices have been invented to preserve accountability to the State. The right of the State, by its general representatives, to remove, is capable of being made to destroy the local election or appointment. The right of the State to sue is not. It is less in conflict with the local power of election and appointment. Official accountability is not complete if there is no remedy for official wrongs but removal. That remedy needs to be supplemented by accountability in the courts on the appeal of a tax-payer or citizen of the locality. If a right to that appeal is denied, the appeal will continue to be made, on often- recurring occasions, to the legislative power, and the system of the last twenty years will be perpetuated. MUNICIPAL GOVERNMENT. The problem of municipal government is agitating the intellect of all civilized peoples. In our own State it is the more interesting and important because it involves the half of all our population, which lives in cities or large villages. The framework of the system which we should adopt must be intrenched in the fundamental law, and protected, by constitutional restrictions, from arbitrary and capricious changes by legislation. This problem failed of any solution in the recent amendments to the constitution. It is worthy of long-continued thought and debate. Time and discussion will at last mature a safe and wise result. THE ERIE CANAL AND THE TRANSPORTATION PROBLEM. The State of NQW York, not denying the general unfitness of Gov ernment to own, construct, or manage the works which afford the means of transportation, saw an exception in the situation, and in the nature of the canals, which are trunk communications between the Hudson and the great inland seas of the North and West. They connect vast navigable public waters, and themselves assume some thing of a public character. 152 THE LIFE OF SAMUEL J. TILDEN. THE NATUEAL PASS OF OOMMEECE. The voyage from Europe to America, even if destined to Southern ports, is deflected by the ocean currents so as to pass closely by the gates of our commercial metropolis. That capacious harbor is open the whole year, accessible in all prevailing winds, is sheltered, safe, and tranquil. From it the smooth waters of the Hudson give transit to the lightest hull, carrying the largest cargo, which the skill of man has brought into use. The head of navigation on the Hudson touches the natural pass of commerce, opened up in the geographical config uration of this continent, where the Alleghanies are cloven down to their base, and travel and traffic are allowed to flow across on a level and by the narrowest isthmus, to the lake-ports, which connect with all that great system of inland water communication and interior commerce, the most remarkable, in its character and extent, and ac cessories, that exists in any part of the globe. THE NOETHWEST. Tributary to the Yfestern centres of lake commerce, such as Chi cago and Milwaukee, are vast areas of fertile soils, which stretch to and partly include the valley of the Upper Mississippi. Open prai ries, easily brought into cultivation, fitted for the use of agricultural machinery, adapted to the cheap construction of railways, and pe culiarly dependent on their use as a means of intercourse and traffic, have been opened to settlers at nominal prices. They have been rapidly filled by a young, intelligent, and energetic population, trained in the arts and industries of an older civilization, and applying them to natural advantages which have been found elsewhere only in con junction with the social barbarism of an uninhabited wilderness. They are now covered with a network of railways, which connect myriads of little centres with the lake-ports and with the trunk rail ways, that bring them into practical contiguity to our great Eastern centres of population, capital, commerce, and manufactures. New York, without arrogating to itself an undue share in these achievements, may contemplate with proud satisfaction its contribu tion to results so magnificent. Important as are the advantages which have accrued to itself, it has not sought to monopolize the benefits of its policy. The price of such cereals and other products of agriculture as are exported in considerable quantities is mainly FIRST ANNUAL MESSAGE. 153 fixed by the competitions of the foreign markets, even for our own consumption. The cheapening of the cost of transit, therefore, chiefly profits the producer. This consideration illustrates how large and liberal, in the main, is the policy adopted by the State a policy which I had the satisfaction of advocating in 1846 and in 1867 of treating these great works as a trust for the million, and not seeking to make revenue or profit for the sovereign out of the right of way. In consonance with the same policy was the action of the State in 1851, in permitting the transit free of tolls upon a railway whioh it allowed to be constructed between the termini of the Erie Canal and along its bank. It had originally undertaken the construction and administration of the canal in order to create a facile and cheap trans portation demanded by the interests of the people, and not otherwise possible to be attained. It did not forget the motive for which it had acted, and remember only its selfish interests as a proprietor. It, therefore, by an act which anticipated the necessity afterward to arise by the construction of rival routes, repealed all restraints on the carriage of property, and opened to free competition every mode of transit, oven in rivalry to its own works, for the products of the West and for the manufactures and merchandise of the East. NOT TO BE ABANDONED. The Erie Canal remains an important and valuable instrument of transport, not only by its direct services, but by its regulating power in competition with other methods of transportation. The State, so far as we can now foresee, ought to preserve it, and not contemplate its abandonment. DUTIES OF THE STATE. If the State accepts the view which commands it to abstain as a proprietor from making profit out of the canal, but .to deal with it as a trust, it still has great duties to perform. It is bound, as a faithful trustee, to protect this great work, not only from a spoliation of its revenues and from maladministration, but from empirical changes, proposed in the seductive form of specious improvements that would destroy its usefulness while charging it with new incumbrances, and from an improvident tampering with its incomes that would dissipate its means of effecting real improvements. These are its ever-recurring and its greatest perils. 154 THE LIFE OF SAMUEL J. TILDEN. LAKE AND CANAL NAVIGATION CANNOT BE ASSIMILATED. The nine hundred and twenty-five miles of lake navigation from Chicago to Buffalo, and the four hundred and ninety-five miles of canal and river navigation from Buffalo to New York, and the three thousand miles of ocean navigation from New York to the Old World, cannot be made homogeneous or even assimilated; each is subject to physical conditions which are unchangeable, and.to which the vehicle of transportation must be adapted. LAKE-BOATS UNFIT AS CANAL-BOATS. The rough and stormy lakes require a strong vessel, made sea worthy by its deep keel, fully manned, and of a form intended for speed in an unlimited expanse of water. The canal admits of a light keel, and a shape which will carry a larger proportional cargo ; for the boat moves safely in a tranquil channel of water, closely confined by physical boundaries on the bottom and sides, and cannot but sub mit to a slow movement. The propeller of the lakes tends to grow in dimensions. A recent one carries 70,000 bushels of wheat, or 2,100 tons. A barge, to be towed by each propeller, is a system now being tried with fair pros pects of success. The lake-craft of the average size carries less cargo in proportion to the vessel than the canal-boat, and it costs twice and a half or three times as much as the canal-boat per ton of capacity. If the canal were made large enough to pass the lake-craft, the transporter could not afford to use the lake-craft on the canal. It carries too little cargo it is too costly it would have to reduce its rate of motion from about eight miles per hour on the lake to less than three miles per hour, which is the highest aim of the canal- boats that now make only 1 T 4 ^- miles per hour. Such a vehicle of transport would not be adapted to the water- channel it must move in, and would not be economical. Tranship ment at Buffalo, with modern machinery, would cost little, compared with the loss incident to using an unfit and illy-adapted instrument. To enlarge the Erie Canal to dimensions adapted to the move ment of such a vessel, at the rate of less than three miles per hour, would be so inconvenient to the traffic that it would be easier and cheaper to construct an independent work. That would probably cost a principal sum the annual interest on which would be greater than the entire amount now received by the carrier for his services, FIRST ANNUAL MESSAGE. 155 and by the State for its tolls on all the existing business. A shorter route would be likely to be preferred. The Hudson Kiver, from Troy to deep water, would need a similar reconstruction. ENLARGED LOCKS AND UNENLARGED WATER-WAY. A project often urged within the last ten years is the enlargement of the locks and other structures of the Erie Canal, without a pro portionate enlargement of the water-way. That plan exhibits a sin gular union of injurious costliness and fatal parsimony. It is founded* on the fallacy that the use of a large boat, without reference to its adaptation to the water-way in which it is to move, would be eco nomical. It is supported by an estimate of the State Engineer in 1864, that the cost of transportation would be reduced one-half. His opinion has been repeated on all occasions until the present time. But that estimate, when analyzed, is found to omit all the wages and support of the crew during the return-trip, and during the time occupied in loading and unloading, and to allow for the use of the boat about half its real cost. In other respects, it was utterly un worthy of trust. ECONOMY FROM THE BEST GROUP OF ADAPTATIONS. The truth is, the boat is but one part of the whole machine of transportation ; economy in the service depends upon getting the best adaptation of all the various parts the boat the motive power the canal, with its structures and its water-way ; the best group of adaptations which adjustments and compromises of each can work out and combine ; and the resultant of the greatest economies which can be obtained in conjunction. A larger boat, in a water-way which now needs to be itself en larged and improved to give a good transit to the present boat, would be an unmixed damage to the economy of the service, attained at immense cost. PERFECTING THE CANAL THE WISE POLICY. The Erie Canal was planned in view of the best science and experience then possessed. It has excellent adaptations. It is a superior instrument of transportation. It should not be fundament ally changed in its character and conditions without great considera tion. It should be perfected, and so made available to every practi cable extent, for facilitating and cheapening the exchanges of com modities between the East and the "West. 156 THE LIFE OF SAMUEL J. TILDEN. ITS CAPACITY ITS ECONOMY. The two questions concerning it are : first, its capacity to do an aggregate business during a given period ; secondly, the economy per ton per mile of the transportation it affords. These questions are generally confused in all discussions. They are completely distinct. They depend upon wholly different conditions. ITS CAPACITY AMPLE. Capacity to accommodate an aggregate tonnage during a day, a month, or a season of navigation, depends on the number of boats of the normal size which the locks are able to pass during the period. Boats can be multiplied indefinitely. The limit to their use is in the number to which the locks can give transit. The time occupied in a lockage is the test. But it is unnecessary to apply that, for the actual results of experience set at rest every doubt. Of the seventy-two locks which intervene between the waters of Lake Erie and the waters of the Hudson, all but a few have been doubled for many years. In 1867, when the subject was discussed in the Constitutional Convention, thirteen remained single. For the first time, on the opening of navigation next spring, double locks will be brought into use throughout the entire canal. That will nearly double the capacity of the canal to make lockages. The largest delivery of the Erie Canal at tide- water was in 1862. It amounted to 2,917,094 tons, in cargoes averaging 167 tons. The lockages both ways, and" including rafts which pass only one way, at Alexander s, which is in the throat of the canal, three miles west of Schenectady, was 84,977. In 1873 the deliveries were 2,585,355 tons, in cargoes averaging 213 tons, and the lockages were 24,960. The theoretical capacity of the canal will be three or four times the largest tonnage it has ever reached. There is no doubt it can conveniently and easily do double the business which has ever existed, even though the locks bo not manned and worked with the highest efficiency. The subject of capacity may, therefore, be dismissed from this discussion. ECONOMY PER TON PEE MILE. The question really worthy of our attention is how we can perfect the canal so as to reduce the cost per ton per mile of the transporta tion it affords. Quickening the movement of the boat increases the service it ren ders in a given period. It lessens every element in the cost of that FIRST ANNUAL MESSAGE. 157 service. It enlarges the number of tons carried in the given time, and, by enlarging the divisor of the same expenses, it reduces the rate of cost per ton per mile. TO BE INCKEASED BY PEEFEGTING WATEK-WAY. The economy in the transit of the boat must be made, not in the locks, but in the water-way. The seventy-two locks in the three hundred and forty-five miles between Buffalo and West Troy, if each takes five minutes, would occupy exactly six hours. In October, 1873, seventy-six boats were timed, and their average passage down, with average cargoes of two hundred and twenty-seven tons, was ten days, two hours, and forty^-six minutes, or nearly two hundred and forty-three hours. If we double the time taken in the locks, the time occupied on the levels between them would still be over ninety-five per cent, of the whole time of the voyage. It is clear, therefore, that the saving of time must be made in the ninety- five per cent, and not in the five per cent. Economy per ton per mile in the transportation, so far as it depends on the structure of the canal, is to be found in the relation which the water-way bears to the boat. The movement of the boat through water confined in an artificial channel narrow and shallow is, at best, very slow. The engineers, in 1835, planned the Erie Canal and the boat with such relations to each other as to give the greatest economy of power and facility of transit. The boat has inclined to grow rather large and too square. The water-way was practically never excavated in every part to its proper dimensions. Time, the action of the elements, and neglect of administration, all tend to fill it by deposits. I may be excused for repeating here what I said in,.the Constitutional Convention eight years ago : " "What the Erie Canal wants is more water in the prism more water in the water-way. A great deal of it is not much more than six feet, and boats drag along over a little skim of water ; whereas it ought to have a body of water larger and deeper even than was in tended in the original project. Bring it up to seven feet honest seven feet and on all the levels, wherever you can, bottom it out ; throw the excavation upon the banks ; increase that seven feet tow ard eight feet, as you can do so, progressively and economically- You may also take out the bench-walls." EECOMMENDATIONS. I recommend that such measures be taken as your wisdom, aided 158 THE LIFE OF SAMUEL J. TILDEN. by such information as can be had from the proper administrative officers, may devise, to put in good condition and to improve the water-way of the Erie Canal ; and that provision be made by law to enable the State Engineer, soon after navigation is opened, to meas ure the depth of water in the canal by cross-sections as often as every four rods of its length, and on the upper and lower mitre-sill of each lock. FUTTJKE INVENTIONS AND ECONOMIES. Such a policy, if properly executed, will give a better and more economical transit to the boats if they continue to be towed by horses. It will also facilitate the use of steam canal-boats, and the full realization of the advantages they may be expected to give as to economy of transportation. The obstacle to their use in 1867 was that the machinery, in its then state, displaced too much cargo to be economical, and was, in other respects, imperfect. The progress of invention since seems to promise more beneficial results. If the movement of the boat can be expedited from 1-j-^j- to 3 miles per hour, including the time consumed in the lockages, the improvement will be of great importance and value. The estimate of the able engineer of the Commission on Steam Canal Navigation is that the cost of carriage of a bushel of wheat from Buffalo to New York will be reduced from eight to four cents. It is not to be supposed that the inventive genius applied to this interesting subject is ex hausted, and, if these results shall in any degree fail to be realized by the present experiments, we may, nevertheless, anticipate more com plete success in the future. INCOME AND OUTGO. It will be seen that on the Erie Canal alone the surplus of income over expenditures is about 37 per cent, of the gross income. If the three other canals, which are to be retained by the State as a part of the system, be included, the surplus is but llf per cent. TOLLS. The present tolls on wheat are 3 T ^ cents, and on corn 3 cents per bushel, from Buffalo to Troy 345 miles. They were reduced in 1870 those on wheat from 6^, or one-half; and those on corn from 4y s o^- to 3 cents, or about 38 per cent. One cent per bushel taken off the present tolls, and the same pro portion on other articles, would annihilate nearly all the net income FIRST ANNUAL MESSAGE. 159 of the Erie Canal, considered alone, and would make a deficiency, in respect to the four canals retained, of half a million of dollars a year, if future expenditure should be the same as in these three years. The construction of the details of the toll- sheet belongs to the Canal Board, and adjustments from time to time may be necessary. Doubtless suggestions on that subject will always receive due consider ation. But in the present condition of things to embark hastily and unadvisedly upon a general reduction of tolls might well be considered as improvident, even in respect to the canals themselves. To confiscate the surplus of one cent, or one-half a cent per bushel, which alone gives the means of making the improvements expected to realize a reduction of four cents in the cost of transportation, would not seem a wise execution of the trust, even disregarding other considerations which cannot be wholly overlooked. NO EASH INNOVATIONS. The question of altering the gates of the locks, or otherwise lengthening the chambers, may be safely deferred until we can be more sure of its utility. The fact that, on the Delaware & Raritan Canal, which admits of long boats, the proportions which exist in those now used on the Erie Canal are preferred, is against that alter ation, as is also the judgment of excellent canal-engineers. Holding ourselves ready to accept improvements which have been subjected to trial and scrutiny, until they are practically assured of success, we ought to exercise the same caution, in respect to rash or crude inno vations, which ordinarily governs men in private business. FINANCIAL RESULTS OF THE LAST THEEE TEARS. The financial results of the fiscal years ending September 30, 1874, 1873, and 1872, for the Erie Canal, and for the Champlain, the Oswego, and the Cayuga & Seneca, are as follows : ERIE. Year ending T Sept. 30. Income - 1872 $2,760,147 50 \ 1873 2 710601 49 Ordinary Extraordinary Total Repairs. Repairs. Expenditure. 11,025,079 09 $661,942 02 $1,687,021 11 749 977 03 967 175 39 1 717 152 42 1874 2,672,787 22 701,340 81 973,548 96 1,674,889 77 $8,143,536. 21 $5,079,063 30 Income in excess of disbursements $3,064,472 91 Average for each year $1,021,490 97 160 THE LIFE OF SAMUEL J. TILDEN. CHAMPLAIN. 1872 $150,64428 $236,21147 $251,87161 $488,08308 1873 158,41786 234,67737 562,78295 797,46032 1874 123,70354 203,13790 242,21643 445,35433 $427,765 68 $1,7.30,897 73 Excess of expenditure over income $1,303,132 05 Average for each year $434,377 35 OSWEGO. 1872 $90,79657 $171,79482 $141,67394 $313,46876 1873 88,42813 93,93881 78,88058 172,81939 1874 70,11959 107,93821 75,56129 183,49950 $249,344 29 $669,787 65 Excess of expenditure over income $420,443 36 Average for each year $140,147 78 CAYUGA & SENECA." 1872 $17,88258 $38,26723 $26,31900 $64,58623 1873 22,481 11 27,143 48 6,921 06 34,064 54 1874 19,31147 28,93408 28,51704 57,45112 $59,675 16 $156,101 89 Excess of expenditure over income $96,426 73 Average for each year $32,142 24 RECAPITULATION FOR THREE YEARS. Income, over Expenditure. Eric $3,064,472 91 Excess of Expenditure over Income. Champlain $1,303,132 05 Oswego 420,443 36 Cayuga & Seneca 96,426 73 1,820,002 14 Each year $414,823 59 THE PAYING CANALS. It will be seen that during the last three years the income of the Erie Canal, considered alone, has been $8,143,536.21, and its expenses FIRST ANNUAL MESSAGE. 161 $5,079,063.30, yielding a surplus of $3,064,472.91. or an average for each year of $1,021,490.97. The excess of expenditure over income of the three other canals which are to be retained by the State has been $1,820,002.14, or three-fifths of the surplus produced by the Erie. Considering the four as a system collectively, the surplus has been $1,244,470.77, or an average for each year of $414,823.59. THE NON-PAYING CANALS. During the same three years the five other canals to which the constitutional amendment applies have given an income of $119,864.- 45, or for each year of $39,954.81, against an expenditure of $1,596,- 499.74, or for each year of $532,166.59. They have consumed all the net income of the paying canals and have charged the State with a loss of $232,164.52, or for each year $77,388.17. In addition to this annual loss, the whole burden of the sinking-fund to pay the canal debt is thrown upon the State. INCEEASE INCOME BEFOEE DISCAEDING INCOME. A careful investigation whether the net incomes of the canals re tained cannot be increased, ought to precede a surrender of what little now exists. Ordinary repairs should be scrutinized with a view to retrenching their cost, and to obtaining the largest possible results from the outlay. Extraordinary repairs include much which so regu larly recurs in different forms, that they must be considered a part of the maintenance of the works. No doubt they also include improve ments which are of the nature of new capital. These and all im provements should be governed by a plan and purpose leading to definite results ; and, instead of scattering expenditures on imperfect constructions, should aim to complete and make available the specific parts undertaken. Unity of administration and of system, both in respect to repairs and improvements, should be established, even if only by the voluntary consultation and cooperation of officers having authority over separate portions of a single work. It is worthy of consideration whether any legislation can aid in securing the unity in this respect which existed under our former constitution. NEW YOEK THE TRUSTEE FOE THE INTEEEST8 OF ALL. The State, hearing all parties interested in the use of the canals, will remember that itself, as an arbiter and trustee, must look equita bly to the interests of all. This it will do in a wise, liberal, and just spirit. To the last degree possible it will cheapen facilities to trade. 162 THE LIFE OF SAMUEL J. TILDEN. It will aim to preserve for its metropolis its position as tlie carrier, merchant, and banker of the New World. CHIEF FUNCTION OF THE CANAL SYSTEM NEW TOEK CITY. Inevitable changes must be recognized as the results of modern inventions and improvements in the machinery of transportation. When water-routes alone existed, products came to New York for distribution to points which are now more easily and cheaply reached directly by rail. Railroads covering the country like a network touch so many points that they are a more perfect and complete agency for the reception and distribution of produce than a water communication connecting a few principal points; and where the transit from the producer to the consumer requires the use of the rail to reach the water, or after leaving the water, or both, the all-rail route will often be preferred. New routes will acquire the business which is naturally tributary to them, and take besides some portion of the general business. The main transportation of Western agri cultural products is for local consumption in the East. What comes to us for our own consumption cannot be diverted. What goes for con sumption elsewhere cannot be acquired. The exports of agricultural products to foreign countries are but a small part of the whole pro duction. In those, New York will easily continue to maintain her preeminence. The Ohamplain and Oswego Canals are, as well as the Erie, in some sense, trunk-canals ; and the Cayuga & Seneca Canal connects our interior lakes. It is a noteworthy fact that Mr. Flagg, who so long and honorably conducted the State finances when the Canal De partment was a bureau in his office, always insisted that with the four canals now to be retained the system was complete. Those it is now proposed to abandon are not fruits of his policy. DISPOSITION OF THE NON-PAYING CANALS. The adoption of the constitutional amendment removing the pro hibition against " selling, leasing, or otherwise disposing of " the canals owned by the State in respect to all except the Erie, the Os wego, the Champlain, and the Cayuga & Seneca Canals, undoubtedly contemplates such action on your part as will disencumber the reve nues of the canals retained by the State, and disembarrass the Treas ury of the State from the unproductive works in respect to which the prohibition is withdrawn. It cannot have been supposed possible to FIRST ANNUAL MESSAGE. 163 " sell or lease" those works on conditions which require the pur chaser to maintain and operate them. To " otherwise dispose of " v them amounts to a practical abandonment. USE AS FEEDEES. Even to deal with them thus involves many important questions of a business character. Those portions of them which descend toward the Erie Canal act as feeders to supply water to that canal. The supply cannot be safely diminished, and might be judiciously in creased. The improvement of the water-way contemplated will call for more water. The consideration of what must be done to retain as feeders portions of these canals not hereafter to be maintained by the State for navigation, or what other provision for a supply of water shall be substituted, is important. To make the change con templated by the amendment with as little harm as possible to pri vate interests, and to consider and provide for cases of possible damage which may be caused by the works when falling into disuse, need careful study of the facts of the situation. It is also to be ascertained what portion, if any, of the property of the State con nected with these works can be wisely sold. A SPECIAL COMMISSION EECOMMENDED. The best suggestion which occurs to me on this subject is to im pose the duty of considering and reporting on these questions upon a special commission consisting of four persons. In the mean time, no expenditures should be made upon those works which are not strictly necessary in view of their probable future. THE INTEEEST OF NEW TOEK IN- THE FINANCIAL POLICY OF THE UNITED STATES. The State of New York receives nearly seven-tenths of all the imports, and sends abroad nearly half of all the exports of the whole United States. In its commercial metropolis a much larger share of our dealings with foreign nations in securities and money is trans acted, and, as at a common mart, the exchanges are largely made between the people of the United States in domestic manufactures aud products, and in public and corporate securities and stocks. More than one-half of the revenues of the Federal Government is collected within its borders ; and at least one-fifth of all Federal tax ation falls upon its citizens. Since the Federal Government has assumed to provide a currency 164 THE LIFE OF SAMUEL J. TILDEN. for the whole country, directly by the issue of its own notes, or in directly by bank-notes, which are secured upon bonds of the United States, and, in case of default by the issuer, are to be paid, before re sorting to the securities, by the United States ; since it has incident ally absorbed the regulation of the business of banking ; since it has largely increased its taxation, and imposes that taxation in forms which affect the courses of industry and the application of capital and labor, it is impossible to exclude these vast operations, and the administrative policy and the legislation connected with them, from a review of " the condition of the State," which it is the constitutional duty of the Governor to communicate, with such recommendations "as ho shall judge expedient," "to the Legislature at every session." CAN MOKE CURRENCY REVIVE PROSPERITY? The illusion is too common that an additional issue of currency in legal tenders or bank-notes would alleviate the distress now felt in business, cause a general rise of prices, and revive a seeming, if not a real, prosperity. Thus many are tempted to desire or to acquiesce in a demand upon the Federal Government to put out new promises to pay, while it is yet in a long-continued default as to those heretofore made ; and to do so after ten years of peace, while having no better excuse for its present default than lack of skill in applying its abun dant resources to the restoration of the public faith. The hope of benefits to any class from such an unsound policy would prove to be completely fallacious. It would prolong and in tensify the evils sought to be alleviated. This conclusion is clear upon principle, and in our own experience. In order distinctly to see its truth, it is only necessary to analyze that function in the business of society which is performed by the circulatory credits known as cur rency. CURRENCY BUT A PART OF CIRCULATING CREDITS. To economize the use of metallic money, which had become tho common instrument of exchange, personal credit, in the form of book accounts, was introduced. For example, the farmer delivered to the country merchant his grain when ready for the market, and tho mer chant delivered his goods at the times when th ey were wanted by the farmer for consumption ; each delivery was entered in a running ac count, until a balance was struck, and even then the settlement gen erally took place without the intervention of money, which neither party had the capital to own for each transaction, or to pay the ulti- FIRST ANNUAL MESSAGE. 165 mate balance. Next came the note of hand, and, when the transac tion was between parties doing business at different places, drafts and bills of exchange. At last the most refined tool of commerce became perfected. The bank-note, promising to pay coin on demand, to bearer, in an even and convenient amount, engraved and authenti cated when issued by an institution or individual of established gen eral credit was voluntarily accepted by everybody in place of coin. It is the currency used in payment by those who do not keep bank accounts, and, in petty transactions, by those who do keep bank ac counts. A credit inscribed on the books of the bank, known in the language of commerce as a deposit, and transferred by check, is the preferred medium of payment, in all save petty transactions, by those who keep bank accounts. It is preferred because a check may rep resent a large and uneven amount, which in notes would be incon venient in the counting, handling, and custody ; and a check payable to order is safer, and is itself an evidence of the payment. In dense communities, where the bank is near the customers, checks are mostly used. In sparse communities, where the bank is remote from the dealers and holders, bank-notes are mostly used. These two tools of trade and mediums of payment are, in their general functions, perfectly identical. BANK-NOTES AND CHECKS THE SAME IN EFFECT AND NATURE. Their real nature is, that they are a provision for expected pay ments, and a reserve for possible payments. On deposits, the holder submits to a partial or total loss of interest, for some banks allow in terest, at low rates, on deposits ; on bank-notes, the holder submits to a total loss of interest. To each holder the motive is ever present, to reduce his non-interest-bearing reserve to the lowest necessary amount, by investing it, if it be his own, or by returning it, if it be borrowed. THEIR AMOUNT VAEIED BY PEOPLE S WANTS, IF PAYABLE IN COIN. If the currency be redeemable, the wants of the community, and not the wishes of the banks, will determine the amount which will remain outstanding. All that Government ought to do toward fixing that amount is, to provide methods to enforce payment by the issuers of such notes as the holders, not wishing to use, return to the issuers for redemption. 166 THE LIFE OF SAMUEL J. TILDEN. AMOUNT FLUCTUATES WITH THE TIMES. It is true that, in times of speculation, the currency increases. Transactions hecome more numerous. Higher prices cause the same transactions to absorb more of the medium of payment. There is greater disposition to provide for contemplated or possible opera tions. There is less care to economize the loss of interest on the amount kept on hand. In times of depression, all these conditions are reversed. During the long period of downward tendencies, from 1837 to 1842, the currency fell, of itself, to about one-half its amount at the beginning of the period. THE RELATION OF CURRENCY TO PRICES. In the ordinary and regular relations between a redeemable cur rency and prices, the fluctuations in the currency follow, instead of preceding, changes in general prices. The notes in the hands of the public, less the reserve kept for their redemption, form a part of the loan-fund of a bank, but that amount is not capable of being in creased at the will of the bank, until a speculation has arisen, and higher prices or more transactions have resulted. Even then, the increase of currency merely provides for the prior increase of prices or of transactions. It may be said that the in crease of currency is a condition without which the increase of prices or transactions could not happen, but that is not true, unless it be shown that no other tool of credit than bank-notes could be used. In cases where a bank originates a speculation by enlarging its loans, it must do so at the expense of its customary reserve. It is only by artificial changes in the currency generally made by Government that the currency itself becomes the primal source of speculation. In fact, it nearly always happens that speculative pur chases are originally made on personal credit, evidenced by open ac counts or notes of hand. The banks are applied to only at the expi ration of the original credit; "and then what is wanted is not a con tinued use of bank-notes, but a loan of capital. Bank-notes are one of the wheels in the machinery of credit. They have no quality peculiar in its action on prices, or different in its action on prices from any other part of the machinery of credit. The currency, at its present amount of bank-notes and legal tenders, is less than the deposits, and is but a small fraction of the whole existing mass of credits, including book accounts, notes of hand, drafts, and bills of. exchange. And new forms of credit machinery are capable of being FIRST ANNUAL MESSAGE. 167 invented indefinitely as when, in September, 1873, the New York Associated Banks created a currency of twenty millions of certifi cates, to be used in the exchanges between themselves. BUT CUEEENOY ONLY SMALL PAET OF CIECULATOKY CEEDITS. It is idle to pronounce the machinery of credit a maniac, dangerous to the community, and then to put only its little finger in a strait jacket. EXPERIENCE OF ENGLAND. The experiment of regulating the note circulation only has been completely tried in Great Britain. In 1844, when, on the recharter of the Bank of England, the bank-note circulation of that country was subjected to rules which were supposed to make it fluctuate ex actly as if it were coin, it was thought, by all but a few great think ers, that there would ever after be stability of prices and stability of business. But in 1847, in 1857, and in 1866, commercial revulsions of undiminished severity demonstrated the fallacy of these hopes, and of the system on which they were founded. While the note circula tion has ever since been confined by law to a nearly constant amount, the deposit circulation has increased many fold. The vicissitudes of credit are as violent as ever. It is apparent that whenever a foreign demand for coin arises, not caused by domestic overtrading, the sys tem creates an artificial scarcity of an important instrument of com merce, and subjects all business to an unnecessary perturbation ; that, whenever a panic destroys the credit of inferior dealers, and the in terposition of the highest credit is called for to supply the vacuum and revive confidence, the system breaks down the law limiting the issues of bank-notes is suspended with the approval of the ministry, and with a promise to appeal to Parliament for an act of indemnity. WHY AND nOW INCONVERTIBLE OUEEENCY DEPRECIATES. The depreciation of a currency, not convertible into coin, repre sents the interests and risk, as estimated by the judgment of investors, on a loan payable at the will of the Government, without interest subject to such temporary fluctuations as are induced by the varia tions in the supply and demand of coin in which that loan is ulti mate^ payable. THUS INFLATING PEICES. There is no doubt that the issue of legal tenders during the civil war hastened and greatly increased that inflation of prices which 1G8 THE LIFE OF SAMUEL J. TILDEN. naturally resulted from the increased consumption and tlio waste caused by military operations, and from the diminished production occasioned by so large a withdrawal of workers from their ordinary industries. It is the nature of credit to be voluntary. It is founded on con fidence. Credit on compulsion is a solecism. So that a forced loan of capital from all existing private creditors cannot but be costly. LEGAL-TENDEK FINANCING. It was made, in this instance, on a security which bore no inter est, and interest on which could only be represented in discount from its par value. It gave to the lender an agreement to pay, which, being instantly due on demand, started in its career a broken and dishonored promise. Every successive holder was left to conjecture when it would be redeemed by the issuer how far it might be ab sorbed in the Treasury receipts whether it could still be paid out to some private creditor at what loss it could be passed away in new purchases, on a market advancing rapidly and irregularly. Every body was advised that the Federal Government unwisely distrust ing the intelligence and patriotism of the people shrank from exer cising its borrowing power, supplemented by its taxing power ; that instead of resorting at once to the whole capital of the country capa ble of being loaned, which forms a vast fund perhaps thirty or forty times as large as the then existing currency, it chose to begin by debasing that comparatively insignificant part of circulating credits, creating fictitious prices for the commodities and services for which it was next to exchange its bonds, in an expenditure ten times as large as the whole amount of the legal tenders it ventured to put afloat, No man could know how often or how much of legal tenders might be issued, under possible exigencies of the future. It could not be wholly forgotten that such issues, made by our ancestors to sustain the victorious war for national independence, were never redeemed, while the public loans made for the same purposes were all paid. It was remembered that history affords other warning ex amples to the same effect. These elements of distrust were needlessly invoked. But the system stopped short of the logical completeness of the expedients of the French Convention in 1793. While it com pelled the existing private creditor, or anybody who should grant a new credit, to accept payment in legal tenders, it did not assume to regulate the prices of commodities. The seller, therefore, gradually FIKST ANNUAL MESSAGE; 169 learned to represent the depreciation of the currency in the price of the article he exchanged for it. As compared with gold, the currency, during all the last year of the war was depreciated to between forty and fifty cents on the dollar, touching at its lowest point thirty-five cents on the dollar. HOW IT RAISED PRICES BY PROVOKING SPECULATION. It was not alone by the direct effect of the depreciation of the cur rency that prices were acted upon ; speculation was engendered. Po litical economy takes little account of the emotional and imaginative nature of man. In long periods, with numerous instances, the aver age, deduced as a law, may perhaps discard that element. B.ut in a particular instance, or at a particular time, it is often very potent, and must be estimated in any calculation which aims at accuracy. After a period of rest when the disposition to activity begins to revive a slight circumstance often excites a speculation that becomes general. The opening of a new market, an apprehended deficiency in the supply of a commodity, any one of a thousand circumstances, may, in a certain state of the public mind, be a spark to kindle a blaze of speculation throughout the commercial world. How much more, then, might it have been expected that such a govermental policy would inspire and inflame the spirit of speculation ! The effect was greatest during the process of a new issue of currency, or while it was anticipated. After the issue was completed there was gener ally a subsidence, or a reaction AND NEEDLESSLY DOUBLED THE BURDEN OF THE WAR. The Government consumption during the war was mostly of our domestic products. As soon as the channels of traffic could be adapted to the new points of consumption, and the new classes of consumers, there was no more difficulty in the transfer of these prod ucts from producers to consumers than in the ordinary operations of commerce during peace. Governments, in times of public danger, cannot be expected al ways to adhere to the maxims of economical science ; the few, who would firmly trust to the wisest policy, will be often overborne by the advocates of popular expedients dictated by general alarm. If the Federal Government had paid out Treasury notes, not made a legal tender, in its own transactions, whenever it was convenient, and redeemed them by the proceeds of loans and taxes on their pre- 170 THE LIFE OF SAMUEL J. TILDEN. sentation at a central point of commerce, and meanwhile had bor rowed at the market rates for its bonds, secured by ample sinking- funds, founded on taxation, and had supplemented such loans by all necessary taxes, the sacrifice would not have been half that required by the false system adopted ; perhaps the cost of the war would not have been half what it became. This analysis of the process, by which the changes in the currency operated to produce the effect on prices witnessed by the people, is necessary, in order to intelligently discuss the problem now pressed upon us. For the fallacy lurks in many minds that the quantity of the currency, even when it has become stationary and quiescent, cre ates by. its direct action a state of prices proportionate to that in quantity. BELATION OF THE QUANTITY OF GUEEENCY TO THE RANGE OF PEJCES. But this fallacy is confuted by our own experience. The pre mium on gold fell from 185 in July, 1864, to 29 in May, 1865 ; or rather the currency rose from 35 cents to 77 cents in gold value, while the amount of the currency remained undiminished. The quantity of the currency in the hands of the public taking the ag gregate of the legal tenders and the bank-notes, and excluding all of both which are held by the Treasury or by the banks is now larger than at any former period. The existence of such a quantity has not arrested the tendency to a general fall of prices. The present inconveniences in business, which it is proposed to remedy by a new issue of currency, have originated and gone on to their maturity, while the currency was being distended to its greatest volume. EXCESS OF CUEEENCY, YET FALLING PEICES. An excess beyond what is capable of being used for the business of society is now, for the first time, distinctly indicated. The move ment of the crops in the last autumn which required something like one-tenth addition to the ordinary amount created no stringency. The banks have voluntarily withdrawn some millions of their circu lation. It is probable that the amount capable of being absorbed by the business of the country will continue to fall for a long period. WHEN INFLATION CANNOT INFLATE. In such a condition of business, of credit, and of the public tem per, a new issue of currency would not cause a rise of prices, unless FIRST ANNUAL MESSAGE. 171 it were so excessive as to occasion speculative depreciation, or dis trust of ultimate redemption. It could not reanimate the dead corpse of exhausted speculation. A period of quiescence must or dinarily precede a renewal of the spirit of adventurous enterprise. . DISTEESS FEOM FALLING VALUES AND LACKING CAPITAL. The distress now felt is incident to the continued fall of values, which is the descending part of the cycle through which they must pass after being farced up to an unnatural elevation. The want felt is a want of capital which the party does not own, and has not the credit to borrow, not a lack of currency. It is caused by invest ments in enterprises which have turned out to be wholly or partially bad, or which give slower returns than were anticipated by too much conversion of circulating capital into fixed capital by excessive undertakings or engagements, induced by a reliance on a credit that was transient. In a period of falling prices, good property becomes less convertible. It loses its circulatory quality. It almost ceases to be a resource to obtain money. HOW DISTRESS CANNOT BE CUBED. These inconveniences would not be removed, if the Government should put out legal tenders and take in a corresponding amount of bonds, or if a bank should deposit bonds and receive notes in ex change. Still the individual distressed for the want of capital would have no additional means to buy or borrow these new issues, which the new owner would obtain only by paying for them. A diminu tion of the Government bonds outstanding is a condition of the in crease of legal tenders or bank-notes. If an embarrassed person could obtain the Government bonds surrendered or deposited, he would be as much relieved by his power to dispose of them as he would by a power to dispose of the legal tenders or bank-notes. His difficulty is that he is equally unable to obtain either. He has not the means to buy or the credit to borrow them. . What he wants is something to make his bad investments good his slow investments current; something to make his property convertible to impart to it a circulating quality, as when there is a general rise of values under a speculative excitement, and everybody is disposed to buy, and everything finds a ready market. INOEEASE OF CUEEENCT CANNOT CUBE DISTEESS. He wants something to create in others a disposition to buy, in 172 THE LIFE OF SAMUEL J. TILDEN. order that he may be able to sell. This is what, in the present state of things, an increase of the currency will not do. It would not act mechanically on prices. It does not operate by physical means. It simply influences the minds of men. It induces them to buy, and, in the effort to do so, they bid up prices. It is only when the minds of men are disposed to receive an impulse toward buying that such an effect is produced. "When speculators go into the market to influence others to buy, in order that they may sell, the conference usually ends in a fall. Even when speculators go into the market to sell on an event expected to cause a rise, the result is commonly a fall. Everybody cannot get out at once at the expense of others. CHANGING FOEMS AND VAETING VOLUME OF CIRCULATORY CREDITS. The amount of currency required by the needs of business is not to be decided by former experience. There is no doubt that, on the first issue of legal tenders, they were largely substituted for other forms of credit. A single case will illustrate : The sudden rise in prices enabled the farmer to become the owner of the floating capital on which his next year s dealings with the country merchants were to be carried on. The habits of business change to adapt themselves to new conditions. It is possible that the Government might cau tiously follow the tendencies of trade, and retire each clearly-ascer tained surplus without doing any harm. But a withdrawal of any considerable portion of the amount required, at the season of the year which creates the largest demand, would produce serious and unnecessary distress. The adoption of a system which should threat en such a result would be very mischievous. The Federal Govern ment is bound to redeem every portion of its issues which the public do not wish to use. Having assumed to monopolize the supply of currency, and enacted exclusions against everybody else, if is bound to furnish all which the wants of business require. The case is, as if the Government should undertake to monopolize the supply of lake- propellers or canal-boats to bring grain to market. If it should not furnish enough, the derangement of business and the distress of pro ducers and consumers would be intolerable. While securing redemp tion, the Government should organize a system which passively allows the volume of circulating credits to ebb .and flow, according to the ever-changing wants of business. It should imitate, as closely as possible, the natural laws of trade, which it has superseded by artifi cial contrivances. FIRST ANNUAL MESSAGE. 173 EASY CONDITIONS OF RESUMING SPECIE PAYMENTS. The ability of the Federal Government to resume specie payments is thus simply a question of its command of resources to pay such portions of the circulating credits it has issued as the public, not wishing to use, may return upon it for redemption. The amount to be paid cannot be considered large, in comparison with its financial operations. It has the taxing power, and by reducing its expenditure could accumulate an adequate surplus. It has the borrowing power and good credit. It can niake permanent loans and pay the Treasury- notes which are returned for redemption. It can convert them or fund them into interest-bearing securities. In that case, they would cease to be currency, and w r ould take their place among investments Jike national, State, municipal, railroad, or other corporate bonds, or any of the numerous forms of moneyed securities, of which many thousand millions are held in our country. The circulatory quality, in securities of equal general credit, is chiefly a question of the rate of interest they bear. The amount of coin necessary for. resumption is, first, an adequate reserve to meet the demand for exportation, for w r hich the Treasury would become the universal reservoir ; and, second, a surplus suffi cient fully to assure the people that the Treasury supply would not be exhausted. The power to command coin as the owner of foreign bills of exchange, or in other forms, would, to a large extent, be equivalent to possessing coin. Beyond such an amount of coin, the question is simply a question of capital. The exact time of actual resumption, the process, the specific measures, the discreet preparations these are business questions to be dealt with, in view of the state 1 of trade and of credit operations in our own country, the course of foreign commerce and the condi tion of the exchanges with other nations, the currents of the pre cious metals, and the stocks from which a supply would flow with out undue disturbance of the markets of other countries. These are matters of detail, to be studied on the facts and figures. They be long to the domain of practical administrative statesmanship. EESUMPTION LESS COSTLY THAN PRESENT IMPOLICY. It is quite clear that the problem ought to be worked out, with out costing the country anything like -such disturbance in its busi ness and industries as the operations of the Federal Government during the last ten years have repeatedly created. The natural 174 THE LIFE OF SAMUEL J. TILDEN. causes which affect trade may be foreseen, and all dealers can calcu late them with equal advantages in everything, except their own dif ferences in intelligence and judgment. But the action of an official, conducting the largest financial operations in the country, and exer cising dominion over the circulatory credits that are part of the ma- chinery by which the mass of private transactions are carried on, cannot but tend to create, in all industries, uncertainty, confusion, and miscalculation. HOW PKESENT IMPOLICY HARASSES ALL BUSIXE3S-MEX. It was said, after the revulsion of 1837, that the barometer of the money market of America hung up in the parlor of the Bank of England. The barometer which hangs up in the Treasury Depart ment at Washington does not merely indicate conditions and changes of the financial atmosphere; it creates them. Its stormy vicissitudes harass the business of the whole country. The partial cessation of productive industries, and the partial want of employment which now exists, are chiefly produced by the fear of the employers that, if they carry on their works, they may pro duce at a loss. The abstinence from purchase by all those classes of dealers who buy and get up stocks to provide for future consumption is chiefly caused by the fear of a further decline of prices. Under these apprehensions the demand is much less than the ordinary con sumption. The instant manufacturers or merchants are convinced that prices have reached the bottom, even for the period of an ordi nary business operation, they will begin to resume their function in the economy of trade. The wheels of our complex industries will move, workmen will find employment, and, with revived confidence in the future, prosperity will be renewed in its sources. Nothing could be more unwise, more mischievous in its ultimate results, than to interrupt the healing process of Nature by expedients which will fail of affording any real relief, and will be certain to accumulate new materials for another catastrophe. It has seemed to me fit that, on this occasion, the opinions of the great Commonwealth we represent, which is so largely interested in these questions, should be declared on the side of sound finance, pub lic integrity, and national honor ; and, in making this communication the medium of an authentic expression on the subject, I follow the example, on similar occasions, of several of the most illustrious of my predecessors. FIRST ANNUAL MESSAGE. - 175 EESULTS DUEING TEN TEAES OF PEACE. It is now almost ten years since the civil war ceased. That period ought .to have sufficed to renew our productive industries, to repair the wastes of our accumulated capital, and to restore to our people a sound and durable prosperity. But an indispensable condition of such results was energy, skill, and economy in production, and fru gality in public and private consumption. MISUSED POWEES OF FEDEEAL GOVEENMENT. The Federal Government has all the while been the greatest sin gle power in the country to influence results, not only by its own vast fiscal operations, its dominion over the currency and the business of banking, and the effect of its transactions on investments of capital, and on the temporary conditions of the money market, but by the ascendency it acquired during a period of public danger over public opinion and over the conduct of individuals. It is to. be deplored that this great capacity for controlling action and for leadership has not conducted us to better results. . * The period has been characterized by unsound public finance, an uncertain policy in respect to the currency, a series of speculative excitements tending to unproductive enterprises and unremunerative investments of capital, and terminating in distressing reactions in credit and business ; a want of efficiency and economy in production, extravagance in public and private expenditure, enormous taxation and complicated systems of revenue which have increased the cost and wasted the fruits of that taxation, and rendered capital and labor less productive and frequent spoliation of private and public trusts. GOVEENMENTS TOO COSTLY. In the decade beginning July 1, 1865, the people will have paid in taxes, computed in currency, seven thousand million dollars. Three-fifths were for the use of the Federal Government, and two- fifths for the State and municipal governments. It is doubtless true that some portions of the municipal expenditures were for objects not strictly governmental. But it cannot -be questioned that much too large a portion of the whole net earnings of industry, and of the whole net income of society, is taken for the purpose of carrying on government in this country. The burden could more easily be borne when values were high, and were ascending. As they recede toward their former level, the taxes consume a larger quantity of the prod- 176 THE LIFE OF SAMUEL J. TILDEN. ucts which have to be sold in order to pay them. They weigh with . a constantly-increasing severity upon all business and upon all classes. They shrivel up more and more the earnings of labor This condi tion of things ought to admonish us, in our respective spheres, to bo as abstinent as possible in appropriations for public expenditures. If the cost of government in our country were reduced, as it ought to be, one-third, it would still be larger than a few years ago, taking account of the prices of the products, which, in order to pay that cost, we are compelled to convert into money. TAXATION TOO BUKDENSOME. THE PROSTKATION OF THE SOUTH. The people are less able to bear such taxation by reason of the want of efficiency and economy in production, and the want of fru gality in consumption, generated by the causes already indicated, and also by reason of the failure to completely renew the productive energies and activities of the States of the South, which furnish about half of the exportable commodities of the country, other than spe cie; which are large consumers of our manufactures and produc tions, and which make us their carriers, merchants, and bankers in. all their domestic and foreign transactions, . It has been proudly ascribed to the humanity of our age that, .since the surrender at Apppmattox, not one life has been sacrificed to the policy of the victorious Government. It is to be wished that we were equally free from the criticism that the retribution visited upon our former adversaries merely conforms to the higher modern estimate of property, as compared with life ; that exercising a moral coercion, invigorated by a standing menace of . military force, v?& have held those communities bound in withes, to be plundered by rulers destitute of support in their public opinion, and without title . to our own respect or trust. FINAL ACCEPTANCE OF AMENDMENTS TO FEDERAL CONSTITUTION. Such has been our course, after and in spite of the fact tha.t these our kindred in a common ancestry, a common heritage, and a common future, had joined at national conventions in the nomination of can didates, and in the declaration of principles and purposes, which form an authentic acceptance of the results of the war, embodied in the last three amendments to the organic law of the Federal Union, and that they had by the suffrages of all their voters, at Ihe last national election, completed the proof that now they only seek to share with us and to maintain the common rights of American local FIRST ANNUAL MESSAGE. 177 self-government, in a fraternal union, under the old flag with " one Constitution and one destiny." There should be no misunderstanding as to this position of our Southern brethren, or of any portion of our fellow-citizens. The questions settled by the war are never to be reopened. The adoption of the thirteenth, fourteenth, and fifteenth amend ments to the Federal Constitution closed one great era in our politics. It marked the end forever of the system of human slavery, and of the struggles that grew out of that system. These amendments have been conclusively adopted, and they have been accepted in good faith by all political organizations, and the people of all sections. They close the chapter, they are and must be final; all parties* -hereafter must accept and stand upon them, and henceforth our politics are to turn upon questions of the present and the future, not upon those of the settled and final past. THE PEOPLE MUST AGAIN ATTEND TO PUBLIC AFFAIES. The nobler motives of humanity concur with our interests in making us hail, with heart-felt congratulations, a real and durable peace between populations unnaturally estranged. The time is ripe to discard all memories of buried strifes, except as a warning against their renewal ; to join all together to build anew the solid foundations of American self-government. For nearly a generation the controversies which led to fratricidal conflict have drawn away the attention of the people from the questions of administration which involve every interest and. duty of good government. The culture, the training, and the practice of our people in the ordinary conduct of public affairs, have been falling into disuse. Meanwhile the primitive simplicity of institutions and of society, in which gov ernment was little felt, and could be neglected with comparative im punity, has been passing away. If public necessities must wring so much from the earnings of individuals, taxation must become scien tific. In our new condition all the problems of administration have become more difficult. They call for more intellect and more knowl edge of the experience of other countries. They need to become the engrossing theme of the public thought in the discussions of the press and in the competition of parties, which is the process of free institutions. The people must once more give their minds to ques tions that concern the ordinary conduct of government, if they would have our country to start afresh in a career of prosperity and renown. CHAPTER XVII. . THE LOUISIANA OUTRAGE. AT the time when the whole country was excited over the Louisiana outrage, Governor Tilden addressed a manly com munication to the Legislature of New York, setting forth, with characteristic clearness, the details of that disgraceful usurpation of power by the Federal Government. It has been thought advisable to reproduce that communication in this connection. It is a statesmanlike view of the whole diffi culty in Louisiana, and displays at once a full knowledge of the case, and an honest indignation at the insult which had been offered the people of a sister State. Pricking through the gauzy pretext which was held up as an excuse for this act of military despotism, Mr. Tilden shows that it was not only unlawful, but that it was without the color of legality. He shows, moreover, that the astonishing proposition of General Sheridan, to consider a certain, number of citizens as banditti, without even describing who should be embraced under that head, was as preposterous as it was unconstitutional. And yet it was in reply to this proposition that the late Secretary of War, William W. Belknap, sent back the telegraphic dis patch, " The President and all of us have full confidence in and thoroughly approve your course." Governor Tilden s sense of justice impelled him to give an expression of his views on this question. It may be remarked that the message to the Legislature was received by the peo ple of the State of New York, irrespective of party affiliations, as a wise and manly document. THE LOUISIANA OUTRAGE. 179 The message, which was dated January 12, 1875, reads as .follows : On your reassembling, I deem it to be my duty to invite your at tention to the grave events which have happened in our sister State of Louisiana. The interval of your adjournment has offered you an opportunity to receive the statements of the parties concerned in those occurrences, particularly that of Lieutenant-General Sheridan, in his official report to the Secretary of War, dated January 8, 1875. You are now enabled to know with certainty all the facts necessary to form a just and deliberate judgment as to the nature of the principal acts which have created so much public excitement. According to the official report of Lieutenant-General Sheridan, the United States soldiers entered the House of Eepresentatives of the State of Louisiana, while that body was in session, and removed from it five of its members. The pretexts of this act are : 1. That it was done under directions from the Governor of the State, recognized by the President. 2. That the persons removed " had been illegally seated," and " had no legal right to be there." 3. That a fear existed in the mind of Lieutenant-General Sheridan that, in some undefined contingency, violence might happen. With respect to the first and second of these pretexts, it is a de cisive answer that the Louisiana House of Eepresentatives had, by the constitution of that State, the exclusive judgment as to the right of these members to seats ; that its judgment is subject to no review by any judicial authority, still less a review by the Governor or by any officer of the United States Army; that its judgment in favor of these members thus forcibly removed is binding in law, and conclusive upon the Governor and Lieutenant-General Sheridan, and upon every other person. In respect to the third pretext, the fear in the mind of Lieutenant- General Sheridan of possible future violence, when no violence really existed, is not only no lawful occasion, but not even an excuse for an invasion of the right of the House of Representatives of Louisiana to judge for itself of the title to seats of its own members. Interference by United States soldiers was not only unlawful, but it was without the color of legality. It was an act of naked physical force in violation of the laws and the constitution of Louisiana, and of 180 THE LIFE OF SAMUEL J.- TILDEN. the laws and Constitution of the United States. There is a case of a disputed seat in the Senate of this State now pending. Another was determined at the last session. The transaction in Louisiana is as if, at the. instance of the Governor of this State, General Hancock, com manding in this department, or an officer specially deputed by the President, should send a file of Federal soldiers and remove the in cumbent to whom the seat had been adjudged by the Senate. That disorders had formerly existed in Louisiana makes no difference. For the laws to which the President and Congress are parties-^ recognize the complete restoration of her autonomy. . The right of her legislative bodies to determine the title of their members is as perfect and as absolute as the right of the Assembly or the Senate of New York; . The animus of the transaction, as indicated by the correspondence between Lieutenant-General Sheridan and the Secretary of War, is infinitely worse than the transaction itself. On the day after the event, Lieutenant-General Sheridan sent a dispatch proposing that a class of citizens, indefinite in number and description, should be de clared, either by act of Congress or by proclamation of the President, to be banditti ; and then indicates his purpose to try them and exe cute them by military commission. On the next day, General Bel- knap, the Secretary of War, telegraphed to General Sheridan that " the President and all of us have full confidence in and thoroughly approve your course." The nature of the acts thus proposed by the oificer second in command of the army of the United States, and thus adopted and sanctioned by the President and his constitutional advisers, is plainly declared by the common law. In the recent case of the Queen vs. Nelson and Brand, the present Lord Chief -Justice of England, in delivering the charge to the grand- jury, declared that "supposing that there is no jurisdiction at all, that the whole proceeding is coram nonjudice, that the judicial func tions are exercised by persons who have no judicial authority or power, and a man s life is taken, that is murder ; for murder is putting a man to death without a justification, or without any of those miti gating circumstances which reduce the crime of murder to one of a lower degree. Thus, in the case put by Lord Coke of a lieutenant having a commission of martial law in times of peace, that, says Lord Coke, is murder." Such are the established doctrines of the jurists and courts of this THE LOUISIANA OUTRAGE. 181 country and of England. Such is the voice of common law glorious jurisprudence of freedom ! birthright of every American citizen ! Its stern logic declares that such an execution of any human being, as was proposed and sanctioned in this correspondence, would be murder by our laws ; and that every functionary civil or military who should instigate it, aid or abet it, or become, in any manner; a party to it before the fact, would be guilty as a principal in that crime. The patriot statesmen who achieved our national independence, end formed our institutions of free government, foreboded, if we should ever fall in intestine strife, that the ideas it would inspire in military minds of insubordination to the laws and of uncivic ambi tion and the habit it would generate in the people, of acquiescence in acts of unlawful military violence would imperil, if not destroy, civil liberty. Events compelled us to a manly choice of confronting these dangers in a struggle to save our country from dismemberment, and to vindicate the just rights of the Federal Union. Having tri umphed in that struggle, now forever closed, we are made sensible of the wise foresight of the founders of our freedom in their warning of the opposite dangers which would attend our success. Those dangers come to. us in acts of illegal military violence, committed in times of peace in the usurpation by the soldiery of a power to de cide the membership of our legislative assemblies, whose right to judge exclusively in such cases has ever been guarded with peculiar jealousy by our race in the proposal, made and accepted by our highest civiland military functionaries, to subject our citizens to tribunals in which a military officer will decide, without appeal, what persons, happening to be found^.in the locality, shall be sent to them for trial will appoint the members of the court will review and confirm or change the judgment and sentence and may order in stant executions, and in which the accused will be tried in secret, and without counsel for his defense. This proposition is thus made, and thus sanctioned, notwithstanding that, for similar acts, our English ancestors sent the first Charles to the scaffold and expelled the sec ond James from the throne ; and pur own forefathers exiled by kindred tyrannies and planting freedom in the wilderness were careful to insert in our Constitution positive prohibitions against the application to any but military persons of such tribunals. Unless such a proposition, so made and so sanctioned, shall be condemned by a public reprobation which shall make it memorable 182 THE LIFE OF SAMUEL J. TILDEN. as a warning to all future officers of the State and the army, the de cay of the jealous spirit of freedom, the loss of our ancestral tradi tions of liberty, acquired through ages of conflict and sacrifice, the education of the present generation to servile acquiescence in the maxims and the practices of tyranny, will have realized the fears of Washington and Jay and Clinton and their compatriots. New York, first of the Commonwealths of the American Union, in population, in resources, and in military power, should declare her sentiments on this occasion, with a distinctness, a dignity, and a solemn emphasis^ which will command the thoughtful attention of Congress, of her sister States, and of the people of our- whole coun try. With the same unanimity with which she upheld the arms of the Union in the past conflict, she should now address herself .to tlie great and most sacred duty of reestablishing civil liberty and the personal rights of individuals, of restoring the ideas and habits of freedom, and of reasserting the supremacy of the civil authority over the military power throughout the republic. , Notwithstanding the vigorous denunciation which this message contained, it was admitted on all sides to be free from undue partisanship, and able in its treatment of a per plexing question. The abuse which called it forth was so flagrant that its denunciatory tone was applauded even by those who were not in sympathy with the Governor. CHAPTER XVIII. THE "CANAL KING" AND ITS OVERTHROW. IT is not to be denied that when Governor Tildeii entered upon the duties of his office there was a large number of persons, including some prominent politicians, who held him in more fear than love. These were the gentry who- consti tuted the " Canal Ring." The " Canal Ring " was composed of men about equally divided between the two parties, who gained their wealth by plundering the State through fraudu lent contracts for repairing the canals. Outside the " Ring," but connected with it by stronger bonds than mere sympathy, was another set of men who were the recipients of the " Ring s " political favors, and occasionally received dividends from its spoils. The inner " Ring " was small, and centred around one firm of contractors in Syracuse known as Deni- son & Belden, but embracing more members than those names imply. H. D. Denison, who was everywhere known as " Doc " Denison, was a good-natured, roistering man, who was educated, I believe, to the .medical profession, and who had served for some years as a member of the Democratic State Committee. His partner, James J. Belden, was a man of strict business habits, who abstained wholly from the use of liquor, and was a church-goer. In the height of his power he was nominated by the Republicans for Mayor of Syracuse. It used to be said of the firm that Denison furnished the rum and Democracy, and Belden the hypocrisy and Republicanism. The power which these men exercised in Onondaga County was very great. They not only employed large numbers of workmen, but they were in the habit of doing financial favors on easy terms to influential citizens who stood in need of 184 THE LIFE OF SAMUEL J. TILDEN. such relief. It was never certain at any time who was under obligations to them, but almost always the caucuses went their way. Jarvis Lord, of Monroe County, and his son George D. Lord (who is now under conviction for bribery), were also contractors, and were more or less "intimately con nected with Denison & Belden. Jarvis Lord, at the time the " Canal Ring " was broken, was a State Senator. His son had previously occupied a seat in the Assembly. Willard Johnson, another canal contractor, was also a member of the Legislature. Soon after Governor Tilden s inauguration a rumor gained currency that he contemplated the destruction of the " Canal Ring." The members of that body and their next .friends haunted the vicinity of the Executive Chamber, hoping to discover by mere propinquity what was going on. As time passed and nothing occurred, they grew bolder. They even went so far as to patronize the Governor, to seek his presence, to assert their friendship for him, to enlarge on the fact that the region which the " Ring " was supposed to infect had given an unusually large Democratic vote, and to assume, in an easy, off-hand way, that he would do nothing to " weaken the party " in that locality. As other Weeks rolled on and no action was taken, they became confident -that they were safe, that the Governor was a weak man, and that they had won him over to their side by blandishments and compliments. All this time, however, the shadow of a great fear hung around them. The memory of Tweed s fate, of the over throw of the " Tammany Ring," of Tilden s reputation as a reformer, could not be banished from their minds. They greedily seized upon and circulated an absurd story that he had been paralyzed, that -his health was failing, that he was threatened with softening of the brain. At last the blow fell. On the 19th of March the Gov ernor s private secretary delivered to both Houses of the Legislature a plain, business-like document, in the form of a special message on canal matters. THE "CANAL RING" AND ITS OVERTHROW. 185 THE MESSAGE. STATE OF NEW YORK, EXECUTIVE CHAMBER, j ALBANY, March 19, 1875. J To tlie Legislature: I have received a petition from forwarders, boatmen, and others engaged in transportation on the canals of this State, representing that the depressed state of their business calls for legislation, and necessitates a reduction of tolls ; and requesting me to look into the condition of the canal commerce, and to make such recommendations to the Legislature as will lead to measures of relief. Respectful consideration is due to so large and important a class of our business-men. They are proprietors of about six thousand boats, which are said to give employment directly to thirty thousand persons, and indirectly to twenty thousand others. They are in the peculiar relation of partners of the State in a vast internal com merce", owning and managing the equipment, while the State owns and manages the body of the canals. The State, therefore, not only has a common interest in the preservation of the joint business, but has a distinct and special interest in the ability of its partners to con tinue to perform their functions, without which the joint business could not be transacted. It cannot afford to suffer the equipment of the canals to be broken up ; to allow a dispersion of the traffic which, if once lost, will not be easily regained ; or to omit any measures of retrenchment in expenditure or economy of administra tion which will enable, it and its partners to meet successfully the increasing competition of the railways with each other and with water-transportation. Impressed with the considerations which induce a liberal policy on the part of the State toward its partners in the internal commerce it has seen fit to undertake, I am, on the one hand, predisposed to every practical and just measure for enfranchising trade and indus try, and cheapening the interchange of commodities, and, on the other, to listen to the rightful complaints of our people against thD extreme burden of our present taxation and the prodigal and waste ful expenditure in Connection with the canals, which is one of the main causes of such taxation. I have, therefore, felt it my duty to devote the intervals of time I could command to a personal investigation of the subject, in order to be able to recommend to you such specific measures as the exigency seems to requite, in the direction indicated in the following passage 186 THE LIFE OF SAMUEL J. TILDEN. of the message I had the honor to communicate at the beginning of your session : "A careful investigation whether the net incomes of the canals retained cannot be increased, ought to precede a surrender of what little now exist. Ordinary repairs should be scrutinized with a view to retrenching their cost, and to obtaining the largest possible results from the outlay. . . . All improvements should be governed by a plan and purpose, leading to definite results ; and, instead of scatter- tering expenditures on imperfect constructions, should aim to com plete and make available the specific parts undertaken. Unity of administration and of system, both in respect to repairs and im provements, should be established." PEOBABLE INCOME OF THE CANALS. Exhibit A is a comparative monthly statement of the tolls on all the canals for the years 1873 and 1874. It shows that, during the months of October and November and a few days of December, which fall within the present fiscal year, in, which period about one- quarter of the tolls of the year were collected, the decrease of tolls is from $836,123.27 to $638,132.96, or $197,990.31. The decrease is about one-fourth of that portion of the tolls. A corresponding de crease for the months of May, June, July, August, and September, 1875, as compared with the same months of 1874, would amount to $600,000. That would leave the tolls for the fiscal year of 1875 at $2,037,000. Assuming them to realize $2,250,000, we are next to find the probable effect of the reduction in rates which is now proposed. Exhibit B is a statement of the effect of the reduction in the rates proposed computed on the tolls of the calendar year of 1874. If a similar computation be made on $2,250,000, instead of $2,- 637,070, the reduction of receipts to be produced by the lowering of the rates would be $534,832. The gross tolls accruing from all the canals for the fiscal year ending September 30, 1875, would be $1,715,168. This diminution of tolls presents in a strong light not only the general depression of commerce, but particularly that of the special business of the boatmen and forwarders. TAXATION FOE CANAL PUEPOSES, During Five Years from October 1, 1869, to September 30, 1874. The public mind is apt to be confused by the various methods in which the complex accounts of the State are kept. A careful analy- THE "CANAL RING" AND ITS OVERTHROW. 187 sis and comparison of those accounts enable the following results to be stated in a simple form : The total amount of the tolls on all the canals dur ing the five fiscal years ending September 30, 1874, was $15,058,361 75 The aggregate of ordinary expenses" and ordinary repairs during the same period was 9,202,434 23 The apparent surplus was $5,855,927 52 The aggregate of extraordinary repairs during the same five years was $10,960,624 -84 Deduct the apparent surplus 5,855,927 52 Real deficiency, being exces.3 of repairs, ordinary and extraordinary, over the whole tolls. . . . $5,104,697 32 Other payments were : Interest $2,908,617 46 Cost of premium on gold 703,468 35 Cost of premium on stock pur chased ... 31,736 00 Transfer expenses, etc 21,238 49 3,665,060 30 Actual cost, exclusive of reduction of debt $8,769,757 62 Payment of debt : Canal debt $2,334,350 00 General Fund debt, over the re duction of moneys in sinking- funds 2,552,13228 4,886,482 28 Contribution to General Fund 200,000 00 $13,856,239 90 The taxes levied for these purposes during the same period were $14,789.848 25 All these payments are directly for canal purposes, except $2,552,- 132.28, which, is in reduction of the General Fund debt, and $200,000 which was supplied to the General Fund. These two payments also are indirectly of the same character. 188 THE LIFE OF SAMUEL J. TILDEN. They but replace fresh advances made by the General Fund to the, canals. In the five years anterior to the period under consideration, from October 1, 1864, to September 30, 1869, the taxes levied to meet de ficiencies in the Sinking-Fund were $1,873,030.54, and the taxes levied for extraordinary repairs, awards, etc., were $6,322,632.52, making $8,195,663.06. The constitution (Art. VII.. section 5) provides that " every con tribution or advance to the canals or their debt from any source other than their direct revenues shall, with quarterly interest, at the rates then current, be repaid into the Treasury, for the use of the State, out of the canal revenues as soon as it can be done consistently with the just rights of the creditors holding the said canal debt." In citing this mandate of the constitution, it is not intended to revive the illusion that even the most recent advances of the State for the use of the canals will ever be restored to the Treasury. There is little probability that they can be regarded as investments capable of producing a reliable income. So far as these enormous outlays have been usefully expended, the State will have to find its compen sation for the taxes it has imposed upon the people in the indirect benefits of its efforts to cheapen the interchange of commodities. Exhibit shows the expenditures for extraordinary repairs, etc., for each of the five years. Exhibit D shows the expenditures from taxation for the sinking- funds during the same period. Exhibit E shows the specific application of the surplus of tolls over ordinary expenses and repairs. CHAEACTEE OF THE EXPENDITUEE. Some items of the outlay attract attention. On the canals which the amendment of the constitution authorizes -the Legislature to abandon, there was -expended for: Extension of the Chenango Canal $676,158 68 Black River Improvement 15,400 00 Oneida Lake 100,000 00 Extraordinary repairs 899,852 82 Awards, etc 969,875 57 $2,661,287 07 THE "CANAL RING" AND ITS OVERTHROW. 189 If the inability of these canals to- meet their ordinary expenses, or indeed to make any respectable contribution toward that purpose, shall compel their abandonment, this great expenditure will be a total waste of money wrung from the people by taxation. On the Erie Canal the following are two specimens : Work up to February 1, 1875, on contract of section 1 of Erie Canal, contracted at $74,183 40 $458,114 72 Work in Black Rock and Buffalo har bors, expended $717,333 00 Engineering expenses estimated.. ... . 71,733 00 Additional appropriations unexpended 170,000 00 959,06600 $1,417,180 72 Total.. $4,078,467 79 This constitutes four millions of the eleven millions expended and the twelve millions appropriated for canal improvements within the last five years. In the mean time, the whole expenditure at rates far too costly on the Erie Canal for doubling locks was $718,984 23 For taking out the wall-benches 1,013,870 25 $1,732,854 48 It is impossible, in the limited time which the exigency allows, to thoroughly investigate the vast mass of various outlays which have cost the people eleven millions of dollars. But the necessity of de termining at once the tolls and appropriations, a sense of how small a share of this burdensome taxation has attained any real utility, and how much of it has been wasted in unnecessary work, or in the ex travagant execution of improvements in themselves useful, and a clear perception of the main sources of the evils of administration, and of reforms attainable by legislation without a change of the constitution, make it my duty now to recommend specific and affirmative meas ures of redress. CAUSES. It is not merely in the general laxity and demoralization of official and political life that we are to look for the causes of these evils. 190 THE LIFE OF SAMUEL J. TILDEN. The interest which fattens on abuses of public expenditure is intel ligent, energetic, and persistent. Acting as a unit, it takes part through its members in the organization and the doings of both political parties ; seeks to control nominations ; rewards friends and punishes enemies; and it begins to operate by every form of seductive and coercive influence upon public officers as soon aa they are elected. APPROPRIATIONS FOB ORDINARY EXPENSES AND REPAIRS. I renew the recommendation in respect to the canals which the recent amendments of the constitution empowered the Legislature to " sell, lease, or otherwise dispose of," that, while the manner of their disposition remains undetermined, " no expenditures should be made on those works not strictly necessary in view of their probable fu ture." In order to carry out this policy, the appropriations for ordi nary expenses and repairs upon them should be specified, separated from the provisions for the canals which the constitution requires to be retained ; and should be reduced to the lowest practicable amount. In respect to ordinary expenses and repairs to the canals which are to be retained as the property of the State, I recur to the sugges tion which I had the honor to submit in the annual message : " Ordinary repairs should be scrutinized with a view to retrench ing their costs, and to obtaining the largest possible results from the outlay." In the present state of the prices of materials and the wages of labor, if the .public officers can be inspired with a resolute purpose to make every expenditure for these objects effective, there ought to be no difficulty in reducing the appropriations from one-quarter to one- third below the amount provided for last year. The present standard of repair and efficiency must be fully main tained. Everything of good administration consists in the selection of the most necessary and useful objects of expenditure, and in securing the greatest effectiveness in the application of labor and the most ad vantageous purchase of materials. If a determination to accomplish this result and a sense of ac countability can be diffused throughout the agents employed in the public service, this object will be easily and certainly attained. THE "CANAL RING" AND ITS OVERTHROW. 191 AP.PEOPEIATIOXS FOE- EXTEAOEDINAEY -EEPAIES. The wisdom of abstaining from all new work, except that which is not only useful but absolutely necessary, is obvious. Every item should be scrutinized with jealous care. The aggregate ought to be kept within half a million ; and as much below that maximum as possible. A thorough retrenchment in ordinary and extraordinary repairs will enable the State to remit for the present year, as compared with the last, to the boatmen and transporters, from five to six hundred thousand dollars of tolls, and at the same time to give relief to our overburdened taxpayers, in a reduction of taxes, to the extent of more than a million and three quarters of dollars. If the restoring the Erie Canal to its proper dimensions and the deepening of its water-way, which is by far the most useful improve ment contemplated, can be deferred, till next year, after its present condition shall be accurately ascertained, and then be proceeded with gradually, there is little else which cannot wait. Justice to the people and to the canals demands that all extraordi nary repairs, beyond what- are clearly necessary to efficient naviga tion, should be suspended until a thorough investigation shall show that every improvement proposed is really necessary ; and that the work is to be conducted under fair lettings and contracts, and is to be faithfully executed. EEIE CANAL. At the opening of navigation the present season, the double locks will be completed. The capacity of the Erie Canal to do an aggre gate business will be several times the requirements of the largest tonnage it has ever had. The removal of the wall-benches will be so nearly completed that the advantages of that change will be practically secured. On September 30, 1874, there remained of wall-benches 24^^ miles on the towing-path side, of which 12 T 2 ^ miles are contracted to be removed; and 46 T yg- on the berme side, of which VyVVare contracted to be removed; leaving 12 T \ 3 Q- miles on the towing-path side, and 39 T \V miles on the berme side, where the obstruction is much less important ; or equivalent in all to 26 miles on both sides. That is, less than V per cent, of the whole length of the canal. 192 THE LIFE OF SAMUEL J. TILDEN. The engineer s estimate of the cost of removing the remaining wall-benches was, in January, 1874, $711,140; and an appropriation of $360,000 was made by the Legislature of 1874, which will be avail able for expenditure during the present year. As the only effect of the wall-benches now remaining is that they contract the jcanal at its bottom from fifty-six to forty-two feet, and, in that proportion, the lower part of the prism, forming a section four feet above the bottom of the water-way thus lessening the body of water in which the boat moves for a fourteenth part of the length of the channel, and but one-fifth of that on the towing-path side the inconvenience of their existence, to this limited extent, is not very great or emergent. In my judgment, a far more important improvement of the Erie canal would be effected by a thorough system of ordinary repairs, which should give the water-way its proper and lawful dimensions ; and by progressively deepening it, wherever reasonably practicable, from seven to eight feet. As the object would be merely to enable the submerged section of the boat to move in a larger area of water, so that the displaced fluid could pass the boat in a larger space, it would not be. necessary to- alter the culverts or other structures, or to carry the walls of the canal below the present bottom ; and the bene fit would be realized in each portion of the canal improved, without ref erence to any other part of the channel which should remain unchanged. In facilitating the movements of the boat, and quickening its speed, it would increase the amount of service rendered in a given time, and would thereby diminish every element of the cost of transportation. It would benefit the boatmen and carriers more, even, than one cent a bushel remission of tolls. It would be of more real utility to navi- gatipn than five or ten times its cost expended in the average manner of so-called improvements on the public works. But it is too simple, too practically useful, to enlist the imagination of projectors who seek the fame of magnificent constructions, and of engineers who build monuments for exhibition to their rivals, or to awaken the rapacity of cormorants who fatten on jobs. I renew the recommendation of my annual message upon this subject ; and particularly " that provisions be made by law to en able the State Engineer, soon after navigation is opened, to measure the depth of water in the canal by cross-sections as often as. every four rods of its length, and on the upper and lower mitre-sill of each lock." THE "CANAL RING" AND ITS OVERTHROW. 193 V CANAL LETTIXGS. The constitution of the State provides that " all contracts for or materials on any canal shall ~be made with the person who shall offer to do or provide the same at the lowest price, with adequate security for their performance." 1 " 1 This requirement was intended to protect the State from extravagant contracts ; but by artful bids, and in some cases by fraudulent combinations, it is made an instru ment to defeat the very end had in view by its authors. I have ex amined more than one hundred contracts, and I find that most are so contrived that not only does the State in the end pay from two to four times the amount of the contract, but that the work is not given to the lowest bidder in fact, although it may be in form. This result is brought about by the following contrivance : When a contract is to be let, the engineer makes out an estimate of the quantity and kinds of work to be done. Those who make bids state at what prices they will do each kind of work, or furnish each kind of material. These prices are footed up, and the bid which amounts to the smallest sum is accepted. The sums thus agreed upon average but little more than one-half the amounts esti mated by the engineer, and apparently the State makes advantageous contracts. On examination, it will be found that the prices for the several items bear no relation to their real value. Jn some instances excavation of earth is put at one cent per cubic yard, and in others eighty-five cents are asked. Excavation of rock blasted at one cent in some cases, and two dollars in others. Slope-wall is bid for in some cases at twenty cents, and in others at two dollars. Hemlock timber, which is worth at least ..twelve dollars per thousand, is in some contracts put at less than three dollars per thousand, and in others at thirty dollars per thousand. Oak-timber in one instance is put at one dollar per thousand, and in others at seventy dollars. Some items are absurdly low, others unreasonably high. In some instances, a contractor will put in proposals on the same day for different jobs, but the prices for the same kind of work or materials will vary in his several proposals several hundred per cent. It is clear upon the face of such proposals that some fraud is de signed, but the commissioners have been in the habit of accepting them. I am happy to say that Commissioner Thayer at a recent let ting rejected this class of proposals, which are known as " unbalanced bids." Heretofore they have been accepted, and not only has the State paid unreasonable prices, but more than one-half of the work 194 THE LIFE OF SAMUEL J. TILDEN. s on large contracts has been done and paid for without being adver tised or offered to the lowest bidders. The contractor gains these results by the following strategy : "When the engineer s estimate of quantities and kinds of material is published by the commissioners, the contractor will find out by collusion, or in some other way, what quantities of each kind of work or material will, in fact, be required, or he will see what in fluence he can exert to change the contract after it is made. If it is changed, no new letting is had, but he claims the job as his right. He then puts in his bid, offering to do such work or to furnish such material as he finds will not be required at all, or in small quan tities, at absurdly low prices, at a quarter or in some instances at a twentieth part of its cost. The items which will be required in full, and probably in extra quantities, he will put at unreasonably high rates, and it turns out that what the contractor offers at low prices is called for in small quantities, if at all, while those which are put at high prices are not only required in full, but in most cases in extraor dinary quantities. An example will more clearly illustrate how the State is defrauded by these devices. The engineer having estimated certain work and materials as follows : ] 00 cubic yards of vertical wall, at $3 $300 00 3,855 " slope-wall at, $1 50 5,78250 2,400 feet B. M. white-oak, at $50 120 00 60,000 " hemlock, at $15 900 00 Total estimate $7,102 50 A. s bid for the job at these rates amounted to $7,102.50. B. s bid for the same was for, 100 cubic yards of vertical wall, at $6 $600 00 3,855 " slope-wall, at 30 cents 1,156 50 2,400 feet B. M. white-oak, at $70 168 00 60,000 " hemlock, at $3 18000 And aggregated $2,104 50 The proposal of B., apparently so advantageous to the State, was accepted, and the contract awarded to him as the " lowest bidder." But afterward, by some influence, it was decided to make only ver tical, and no slope wall, and to use only oak and no hemlock timber. THE "CANAL RING" AND ITS OVERTHROW. 195 There was no reletting, although the agreement had been in fact re vamped into a new and different contract, which enabled B. to collect from the State for 3,955 cubic yards of vertical wall, at $6, 62,400 feet B. M. white-oak, at $70 The sum of. $23,730 00 4,368 00 00 It will be seen that in such transactions and they are numerous in violation of the constitution, the contractor gets the work with out there having been in fact any public letting, or any chance for competition by others. For the purpose of showing the actual results of this system, I state the following ten cases, which give the amount the State has paid on certain contracts in comparison with the sum for which the contractor agreed to do the work at the lettings made by the com missioners : CONTKACT. Amount of contract upon exhibited quan tities at contract prices. Amount actually paid by the State up to February 1, 1875. No. 1 $74,183 40 $458,114 72 2 29,431 00 56,845 68 3 37,871 00 110,320 13 4 10,617 00 49,936 30 5 . 14,397 00 78,967 20 6 85,562 50 220,614 58 7 . 31,286 00 130,317 45 8 86,584 00 222,610 68 9 9,504 00 41,127 55 10 45,300 OtJ 191,915 55 Total $424,735 90 $1,560,769 84 These show that the State has already paid nearly four times the amount which was involved by the terms of the contracts, and, though this excess amounts to more than a million of dollars, some of the ex penditures are still going on with no prospect of completion. It also appears that of the expenditures of $1,560,769.84 only $424,735.91 less than one-third was submitted to a public letting. By manoeuvres of this character the costs of public works are run np to extravagant sums. Appropriations are absorbed, deficiencies 196 THE LIFE OF SAMUEL J. TILDEN. are created, to be paid by new appropriations, and the people are loaded down by taxes. EEMEDIAL MEASTJEES. Desiring to cooperate with you in a reform of existing abuses, and of the systems which have conduced to them, I submit to your con sideration such suggestions for new legislation as seem to me adapted to meet the wishes and protect the interests of our common con stituents. ENGINEEES ESTIMATES. Methods ought to be devised to make the estimates of the kinds and quantities of work, exhibited on the quantity-sheet for lettings of contracts, to conform to the actual work to be done. On a change of the plan or specifications of a contract, the work under the old contract should be closed, and a new letting should take place. BIDDINGS. The law authorizes the Canal Board to make regulations as to the biddings, and one of those regulations provided for discarding bids which show bad faith upon their face. As the officers who let the contracts have not enforced this regu lation, except in a recent case, a law should be passed defining their rights and duties in this respect. I recommend that hereafter the bids be opened, and the awards of contracts be made by the Canal Board. It is a larger body, and contains the officer who is charged with the fiscal administration of the State, and also the State Engineer. It was formerly vested with these duties, and the change was only made to serve a temporary party object. OFFICIAL ACCOUNTABILITY. In the organization of governmental powers two conditions seem essential to the well-working of the machinery of administration: 1. While undue concentration of powers should be avoided, and checks and balances, in the requirement of the concurrent action of several persons, are preserved, a certain unity of function and of organization is necessary to enable the people to enforce any real responsibility. An issue in regard to the conduct of public officers, or in regard to a policy of administration, should be submitted to the people with the simplicity of an issue to a jury at common law. The million of voters in the State cannot resolve themselves into a committee of THE "CANAL RING" AND ITS OVERTHROW. 197 investigation to hunt out by long and tedious search the particular wrong-doer. They cannot convert themselves into a court to go through a complicated and protracted trial. Amid the numerous and changing objects of interest which attract their attention they cannot devote themselves to a single specific measure of ordinary importance for three successive years. All schemes of administration which in volve such impracticable demands for cooperation of such vast num bers of individuals, discard the idea of representation in government. They compel the whole voting mass to conduct the complex affairs of human society in person. They are snares invented to destroy the power of the people in their own government, to neutralize the elective principle, and to create official irresponsibility. The members of the Canal Board, other than the Canal Commis sioners and the Lieutenant-Governor, are all chosen at one election. The elective power of the people is effectual to make a change of per sons or policy. But the Canal Commissioners are elected one each year, and it takes three years to make a complete change. They have practically ceased to act as a board. Each one carries on his administration over his division of the canals as if he were a totally independent authority. They make three separate reports. Each one prepares a separate annual estimate for future expenditures. They formerly sat as members of a Board of Canal Commissioners, who consulted, decided, and acted as one integral body. Their most important functions were performed as members of the Canal Board, or in concert with the Canal Board, which embraced the great officers of the State, including its fiscal representative, who is under an ever- active pressure to make both- ends meet in the financial affairs of the State. They were practically subordinate to the fiscal members of the administration. 2. It is fundamental that the spending officers must be subject to the influence and control of the officers whose duty is to provide the ways and means. No great corporate business, no private affairs could be conducted successfully on any other plan. The experience of the State, under a system in which the officers who initiate ex penditure and control the application of the public money, and the execution of public work, have been independent and practically irresponsible, has been fruitful of irregularities, extravagance, waste, and corruption. There have been several futile impeachments, but no real remedy. It does not seem expedient to wait for a change which involves 198 THE LIFE OF SAMUEL J. TILDEN. an amendment of the constitution, and will, therefore, take several years. There are measures within the competency of the Legislature which can be put into immediate operation, and which will have great efficiency to remedy the evils. Among these, the suggestion has occurred to me, that an Inspect or of Public Works can be created by law, who shall be invested with full powers of investigation, and shall report to the Governor and Legislature ; and who shall derive his appointment from a source completely independent of the canal officers. Another expedient worthy of your consideration is to enforce the accountability of the officers charged with the disbursement of the public money, by a liability to summary removal or suspension. The constitution (Art. X., section 7) commands : " Provision shall be made by law for the removal for misconduct or malversation in office of all officers (except judicial) whose powers and duties are not local or legislative, and who shall be elected at general elections, and also for supplying vacancies created by such removal." At the close of the session of the convention of 1846, on the day before its final adjournment, it was discovered that, except in the case of the Treasurer, no provision had been made for the removal of State officers having charge of public funds, who had been made elective by the people of the whole State. The convention, not undertaking at so late a period to devise a system, devolved that duty on the Legislature. This power has remained twenty-nine years unexecuted. It is a duty of the Legislature which ought no longer to remain unperformed. Applied to the Canal Commissioners, who are agents not only in the application, but in the custody and disbursement of the public moneys, and to the State Engineer, who, with his subor dinates, exercises great power over the expenditure by his estimate of the cost and certificates of the performance of work, it would be an improvement upon our administrative system, in accord with the intention of the constitution, with sound principles of government, and with the indications of experience. Provision ought also to be made by law for regulating the for mation of the annual estimate for future expenditures. It ought not only to be the result of consultation between the Canal Commission ers, but should have the written approval of the State Engineer as to THE "CANAL RING" AND ITS OVERTHROW. 199 the necessity and cost of the work ; and of the Comptroller as to its propriety, considered in connection with the financial administration. It would doubtless be a valuable improvement to create a pay master, appointed by the Commissioners of the Canal Fund, who should be accountable to the Auditor, and should make all payments on the certificates of the Canal Commissioners and State Engineer. With these provisions the control of the State Engineer over his subordinates might properly be enlarged. OTHER MATTEES TO BE LOOKED INTO. I have deemed it my duty to look beyond the abuses practised in the letting of contracts, and to see if the materials have been de livered, and the work has been done, for which so many millions have been paid out by the State, and also to Team if the locks, walls, and other structures have been built in a faithful way, and in com pliance with the contracts. I am satisfied, from information I have already gained, that there should be an investigation of these subjects. It is my purpose, with the aid of the members of the Canal Board, to have an examination made of our public works, and to learn their condition. It may be too late to detect all frauds, but many may be exposed and punished, and a check put upon practices so destructive to morals, as well as to the public interests of the people of the State. CONCLUSION. It is clear that under the present system of canal management the people will not be relieved from taxation, the boatmen from high tolls, or the needed improvements of the Erie and Champlain Canals be finished. It is in our power to gain these great objects by a wise and honest policy of retrenchment, reform, and official respon sibility. Unfortunately, the abuses now practised against our canals and their commerce are exciting strong prejudices against these great public works rather than against the wrong-doers and the wrong-doing which tend to destroy them. Our duty is clear. Let us cut off the expenses which divert reve nues from general improvement of the canals to local or individual purposes, make every official, every employe, every contractor feel that the laws you have just passed against fraud will be enforced, and our canals will be finished, their commerce revived, and taxation will be lessened not only as it oppresses the boatmen, but also all other classes of our citizens. 00 THE LIFE OF SAMUEL J. TILDEN. There is no real antagonism between the boatmen and forwarders who seek a fair compensation for their services, the public who desire cheap transportation, and the people who justly claim some relief from the present intolerable pressure of taxation. Their interests are joint. Whenever these classes are brought into a false position of apparent hostility, it is sure proof either of a bad state of laws, or of an unfaithful performance of official duties. Whoever, for illicit gain, despoils or wastes the resources applicable to these objects, is the common enemy of the boatmen and the tax-payers, who must unite to enforce measures of reform and redress. SAMUEL J. TILDEN. The effect of thi$ message cannot be described. A thou sand times the people of New York had been told that they were paying tribute to the " Canal Ring." But never before was the matter put in so plain a light that, at a moment s glance, they could see the operation of the game by which they were swindled. The message was listened to with an attention not often paid to public documents. Then the implicated members rushed out to telegraph to their impli cated friends that " lightning had struck." Within a won derfully short space of time nearly every member of the " Canal Ring " and all counselors and advisers were gathered in Albany. The first point th at they attempted to put for ward in their own defense was that the message contained nothing new. What it contained, of course, was not new to them. It was a simple recital of their methods of doing business. But it struck the people -of the State as a star tling exposure. Their next point was that the Governor, in making his attack, had been controlled by personal ambition by a desire to distinguish himself above all his predeces* sors. But this point was impertinent to the question at issue, which was whether or not the frauds had been com mitted in the manner described. The tide of public opinion never rose higher than on the appearance of the message. It was simply irresistible. The newspapers, which were in the habit of abusing the Governor THE "CANAL RING" AND ITS OVERTHROW. 201 for everything that he did, could not withstand the pressure, for the time being, but turned in and praised him. The Legislature, which contained its full quota of jobbers from the ranks of both parties, acceded to the Governor s request, and authorized him to appoint the commission which he had recommended. He named as members of this commission John Bigelow, our former minister to France ; Daniel Ma- gone, Jr., a practising lawyer from St. Lawrence County ; Alexander E. Orr, a Brooklyn merchant ; and John D. Van Buren, Jr., a civil engineer who had been an instructor at the United States Naval Academy at Annapolis. The com mission as constituted was non-partisan. Messrs. Bigelow and Orr had acted with the Republican party from the date of its organization, while Messrs. Magone and Van Buren were Democrats. The commission sat through the summer and fall of 1875, and put forth a series of reports in which the more flagrant of the fraudulent contracts were thoroughly examined. The amount of work actually done was duly cred ited, and the stealings were specified. In August, 1875, Governor Tilden paid a visit to Lieu- tenant-Governor Dorsheimer, at the home of the latter, in Buffalo. While there the Governor was made the recipient of many marks of favor at the hands of the people. He was invited to deliver an address before the Buffalo Board of Trade, and accepted the invitation. The members, regard less of political affiliations, welcomed him most heartily, and listened with every sign of approval to the following speech : SPEECH OF GOVERNOR TILDEN BEFORE THE BUFFALO BOARD OF TRADE, August 10, 1875. ME. HIBBAED, ME. PRESIDENT, AND GENTLEMEN OF THE BOAED OF TEADE : I recognize in you, not the members of an important commercial body, not the business-men of the noble city of Buffalo, but the representatives of that great system of intercommunication by which the products of the fertile and distant West and the popu lous East are exchanged the common agents of those great com- 202 THE LIFE OF SAMUEL J. TILDEN. inanities which occupy the northern section of our continent. The expense of conveying food to the consumer is often greater than the original cost of raising it. Whatever, therefore, cheapens trans portation, adds to the productiveness of human lahor as much as in creased fertility of the soil or increased geniality of the climate. Standing here in Buffalo, and turning the eye into the far West, wo behold a series of lakes, forming the finest inland navigation that ministers to the wants of man ; which, if stretched out in a line ? would extend more than half the voyage from New York to Liver pool. On the East, hy the Erie Canal and the placid waters of the Hudson, the system is extended five hundred miles to the harbor of New York. On the West, it is connected by a complicated system of railways, with every minute part of that most magnificent area of virgin soils, which have been the theatre of the arts and indus tries of civilized life ; a region in which Nature has poured out her blessings with boundless prodigality, and which is destined to be the seat of many millions of prosperous and happy people. Taken together, this system is as long in its whole extent as the track across the ocean the ocean from the Old World to the New. Con sider, my fellow-citizens, on what a grand scale the interests and business of our country are organized. Shall we protect the Erie Canal, which forms one of the most important lines of this system, from spoliation? That is the question for the business-men of Buffalo to consider. [Applause.] You came down to Albany last winter and asked for a reduction of tolls. Ever anxious to cheapen the cost of transportation and transit, when I came to look into the question, with a desire to carry out your wishes, I found you were confronted by a body more numerous and more powerful than yourselves the tax- payers of the rural districts of this State, not immediately benefited by the canals, in respect to whom the bur dens of taxation had become nearly unendurable, and were bearing with more oppressive severity every day. I ventured, therefore, gentlemen, in my special message of March 18th, to suggest a plan which I thought would harmonize the various interests at stake. I found there were abuses and maladministration, frauds and pecu lation, which not only consumed the entire surplus revenues of the Erie Canal, but burdened our tax-payers with more than two millions a year, levied by taxes, under pretense of improving the public works. I proposed, therefore, that we should, on the one hand, re duce the tolls to the extent of five or six hundred thousand dollars, THE "CANAL RING" AND ITS OVERTHROW. 203 and on the other remit a million and three-quarters of taxes. Six months have elapsed, and the fruits of that controversy have secured you the reduction of the tolls you asked for, and remitted to the tax-payers two and three-quarter millions of the burdens imposed on them last year. I propose to you to-day, gentlemen, that we should continue this policy. [Applause.] If the people of this State will send to the next session of the legislative bodies representatives who will hon estly cooperate in this great work, I here to-day promise them and promise you that whereas we reduced the taxes last year from seven and one quarter to six mills, next year we will put them down to four and a half and even four mills. Afterward they can be reduced still lower. You commercial men of Buffalo have not only the common interest which every tax-payer has, but the special advantage of fur ther enfranchising trade, and improving the means by which it is carried on. We will save a fund large enough to answer every object of this description, and go forward and make this great and noble State and its institutions all that it has a right and is destined by Providence to become, [Applause.] I know, gentlemen, that at tempts have been made to discourage the people in this great work. We have been told that nothing has been accomplished ; that nothing can be, and that the people are to remain bound with withes, to be the prey of those who consume the fruits of taxation. In answer I point to the practical results of six months of reform. What are they? First, we have wounded and crushed a system of abuse, malad ministration, fraud, and peculation, that has fattened upon the public works, the transporter, the consumer, and the tax-payer. [Ap plause.] And if the people of this State are true to themselves, that system, once broken, will never be revived. In the second place, there has been enacted a series of laws to bring to account the public agents and official persons, and punish their malversations, the effi cacy of which, if faithfully administered by the courts, will soon be seen. In the third place, we have reduced the tolls and remitted the taxes to the large extent I have mentioned. In the fourth place, measures have been instituted to hold to account the public plun derers. These measures have been taken as early and as rapidly as possible, and are going on to consummation. I am glad, myself, to be reproached for being too slow. I have been as fast as I could, and have given all my time to your service ; but I rejoice to be THE LIFE OF SAMUEL J. TILDEN. reproached for being too slow, because it indicates to me that the people are impatient to consummate the great reform. [Applause.] Fifth, and lastly, gentlemen, there is something higher, more im portant, more noble, more deeply concerning human society than even these material advantages. We have lifted the standard of public and official morality in the country; we have awakened a sense of justice and duty in the people, and are rousing public opinion to demand better government and purer administration everywhere. [Applause.] Gentlemen, the cause will not fail. In the last session it was often betrayed, sometimes defeated, and generally obstructed, but it will go on to a complete triumph, which will be a blessing to the whole of these five millions of people who live within the juris diction of this State. [Applause.] Whoever shall dare to obstruct or oppose it, or stand in its way, will fall, not to rise again. I know there are men of selfish interests who have not yet learned that the old age has gone out, and the new age has come in. [Applause.] There are public men seeking popular favor who still think that the way to success and honor is to combine selfish interest to pile " Canal Ring " upon " Tweed Ring," and so rule the people of this free State. According to the measure of my ability, I humbly represent the com mon-sense of the people of this State the farmers, the mechanics, the laborers, the men of business the moral sense and purpose of the community against its selfish and fraudulent interests. Now, men of Buffalo, I ask you to-day to consider what is to be your part in this work. While about your various callings and industries, you leave the government to take care of itself, and men who mean to make money by .plundering you give their nights and days to study out the methods ; they are always at conventions and caucuses ; they go to the Legislature, and, while you are reposing in fancied safety, are plotting against your interest and rights. If you will permit me to offer a suggestion I do not assume to advise I only say that when bad men combine, good men should unite. [Applause.] And if you will be as earnest, and determined and persistent, in demanding that the right shall be done, politicians will court your favor, and not the favor of the " Canal Ring," or any other "Ring." What concern have you by what name a man is called who goes to Albany to misrepresent your interests and duties ? Is it any satisfaction to a Republican that that man is called a Republican, or to a Democrat that he is called a Demo crat? Does it make any difference what livery he wears to serve the devil in? [Laughter and applause.] I say you have but to assert THE "CANAL RING" AND ITS OVERTHROW. 205 your rights and they will be respected ; and when the parties to which you belong come to make their nominations, if there be on the tickets any one not true to you, you have but to exercise the reserved rights of the American citizen, to vote for somebody else. [Cheers.] Gentlemen, I avail myself of this occasion to thank the Board of Trade for their kind invitation, and the citizens of Buffalo generally for the prodigal hospitalities that have been bestowed on me during the two days I have been visiting my friend Lieutenant-Governor Dorsheimer (cheers), who is about to take up his temporary residence in Albany. I thank you for your kindness to me, which I ascribe not so much to myself personally as to the cause which I serve. The next day Governor Tilden left Buffalo, and it was an nounced that he would spend the night at Syracuse. It was a bold movement thus to seek the headquarters of the " Canal Ring." It was not exactly " bearding the lion in his den," but might be likened rather to hunting the vultures in their nest. The general belief was expressed that Mr. Tilden would meet with a cold reception at the home of Denison and Belden. But those who indulged in such forebodings were doomed to disappointment. Such a crowd as gathered in the evening to welcome him was never before seen in Syracuse. The square in front of the hotel in ^hich he staid was literally packed with people. The neighboring piles of lumber, the canal- bridges, the roofs of the houses, all places within and beyond the sound of his voice, wer.e filled with those who sought to hear the words of the man who had broken tie power of a combination which they had learned to look upon as invinci ble. He came forward on the upper balcony of the hotel, in response to the calls of the multitude, and made the speech which is appended: SPEECH OF GOVERNOR TILDEN AT SYRACUSE, August 11, 1875. CITIZENS OF SYEACUSE AND THE COUNTY OF ONONDAGA : If I had anticipated that I should be called upon to-night to speak to such a vast assemblage of people as I see before me, I should have been more economical of conversation on the cars. I am glad, however, to 206 THE LIFE OF SAMUEL J. TILDEN. meet you. I am glad to see that the question of reform in the ad ministration of public affairs in this State is awakening a deep inter est in the minds of the people. [Applause.] It is not necessary for me to draw your attention in detail to the particular abuses in regard to the canals of this State. You have become, alas! too familiar with the situation. Here, under your own eyes, and your own observation, these transactions have been carried on in open day by a combination that have sought to rule the State. I am sure, by your coming here to-night, that you are determined there shall be thorough and effectual reform in these matters. Fel low-citizens, so far as depends upon me, your first official representa tive, I wish to say to you that nothing shall be withheld. [A voice, u Good ! "] Your cause will be carried forward and onward, all the force of the law will be exercised to procure for you your rights, and to punish those who have violated them. I was called on this morning to speak some words of encourage ment and hope to four hundred little boys in the Western House of Eefuge. During all my journey I have been frequently followed by persons, asking for their friends and for those in whom they were in terested a pardon from the penitentiaries and State-prisons. I have been compelled to look into such cases and see who are the inmates of these institutions, and of what they have been accused, to see what it is that constitutes the wrongs to society of which they have been convicted. When I have compared their offenses, in their na ture, temptations, and circumstances, with the crimes of great public delinquents who claim to stand among your best society, and are confessedly prominent among their fellow-citizens, crimes repeated and continued year after year, I am appalled at the inequality of hu man justice. [Great applause.] The effort to give you redress has been, for the last three months, derided and scoffed at. We have been told that nothing would come of it ; that the people would fail ; that their rights would not be maintained, and particularly that these great, rich, and powerful culprits would prevail ; would escape the meshes of the law and the punishment of their crimes ; that their palaces, built with the moneys drawn from the sweat and toil of our honest, industrious, hard-working citizens, would continue to rise like exhalations and shame public morality and public honor. Fellow-citizens, I say to you to-night as I said on the 4th of No vember, 1871, now nearly four years ago when I took a share in the great contest in New York City in your cause I will " follow THE "CANAL RING" AND ITS OVERTHROW. 207 where any shall dare to lead, or lead where any shall dare to fol low ! " [Tremendous applause.] The cause will not fail. Whoever shall venture to stand against it will fall to rise no more. I have no apprehensions that the law will fail of its efficacy. But I will speak a word of encouragement to those who are less hopeful. You can send, if needful, to the legislative bodies men who will make new . and better laws to punish these wrongs and to bring the wrong-doers to justice, and the people, by the exercise of their sovereign authority, may, if need be, in convention assembled, redress all defects and failures of public justice. If our legislative bodies and public officers fall short of their duty, the people can recall the powers they have delegated can renovate the administration of justice until those eyes represented in Roman statuary as blind, will be made to see sub stantial right and genuine law. [Great cheering.] Fellow-citizens, I know you do not expect me to address this vast audience beyond a reasonable exercise of my voice. I will then refer you to what I have said on a late occasion before the Buffalo Board of Trade, and every word said there I repeat to you to-night. I assure you that, so far as the administration of the law is concerned, nothing shall be spared to protect and enforce your rights with im partial justice. I say this in no spirit of vengeance " With malice toward none, with charity for all" but with a firm devotion to the rights and interests of the people, the work of reform shall and must go forward. [Cheers.] Thanking you for your kind attention and the distinguished honor of addressing on such a topic so vast an assemblage of all parties and classes, I bid you good-night. Nobody doubted to whom he referred when he said, " I am appalled at the inequality of human justice." The ap plause which greeted the sentiment conveyed a warning to the members of the " Ring " which they were not slow to heed. A lawyer, representing one of their leaders, called on the Governor the next morning to inquire on what terms his clients could settle with the State. He received no encour agement for a settlement which did not cover the absolute surrender of moneys fraudulently obtained. The Governor proceeded to Utica on the afternoon of the llth, and became the guest of Senator Francis Kernan, who 208 THE LIFE OF SAMUEL J. TILDEN. has been and is one of his ablest public supporters and warm est personal friends. Here also he met with an enthusiastic reception and delivered an acceptable- address. But later in the season he gave in Utica a more elaborate address, which is herewith presented : SPEECH OF GOVERNOR TILDEN AT THE CENTRAL NEW YORK FAIR, September 30, 1875. NEW YOEK AQEICULTUEE. ME. PEOCTOE, GENTLEMEN or THE FAIE, AND CITIZENS OF OENTEAL NEW YOEK : I felicitate myself that I have to-day an opportunity to witness the magnificent display of your industries, and, what is more magnificent, this mass of farmers and citizens. New York is fore most of all the States of the American Union in its agriculture. It embraces the largest number of farmers. It has more invested in the value of its farms and agricultural implements, and every year yields a larger product of its agricultural industry, than any of the American Commonwealths. True it is that New York is transcendent in commerce. It exceeds in manufacturing and mechanical industries all of the States of the American Union. But with these great achievements in the industrial arts it still maintains its front rank in agriculture. THE GOVEENOE S AGEICULTUEAL LINEAGE. Fellow-citizens, farmers of Central New York I know that in addressing you I have to encounter a dangerous rivalry. Here among you is the illustrious dairyman of Deerfield, farmer Horatio Seymour [applause and laughter] and I have to compete with the ornate oratory of Roscoe Conkling, and with the fervid eloquence of Francis Kernan, two famous husbandmen of Utica [applause] but I venture to assert some claim to an audience among the farmers of this county and this part of the State. At any rate, if I have not done much in my own day and generation in agriculture, at least I can claim a long line of ancestors devoted to the tillage of the soil. [Applause.] Two hundred and forty years ago the ancestor whose name I bear came to this country. At that time a man was not allowed to emigrate unless he was certified to by the public authorities, and they certified my ancestor as a yeoman of Saxon and Kentish England, which had pre served its free customs and immemorial liberties during all the con vulsions of the feudal ages. I therefore assert my patent of nobility THE "CANAL RING" AND ITS OVERTHROW. 209 in the descent from a yeoman in whose race for many centuries there had never been any submission to arbitrary power. [Applause.] Fellow-citizens, as I grew up I lived among farmers, not in a city like this of Utica, not in a village, but in a hamlet, where almost every man I met was a tiller of the soil. I believe that I learned to understand their temper, their character, and their interests ; and ever since through life I have been mindful of them in the humble part I have taken in the conduct of public affairs. And I consider myself invited to-day, by the remarks made by the president of your society, to say to you a few words in regard to the interest of the farmers of the State of New York in the present condition of our pub lic affairs. I have no word of a partisan character to utter. I have nothing to say to you ^hat an American citizen should not say to every other American citizen, of whatever political party or whatever po litical opinions. FARMERS AND TAXES. My proposition, then, gentlemen, is that the farmer, more perhaps than any other class, is interested in the question of taxation, which has been adverted to by the president of your association. The gains of the farmer come slowly and with difficulty. No fortunate specu lations, no turn of the markets, no exercise of his wits, fill his little treasury. It is toil honest, patient, industrious toil -to which alone he can look for his scanty surplus, which at the end of the year ena bles him to fill his little store, and to meet the constantly-recurring demands of the tax-gatherer. I say, therefore, that he more than any other citizen of our community is interested in this question. Now, my fellow- citizens, what are the facts in respect to this matter ? Our fore fathers fought that they might establish on this continent an associa tion of equal American citizens, who should be able to conduct their public affairs by a simple government, attending to a few common objects, maintaining justice, protecting the citizen, and leaving the mass of his earnings in his pocket, to be disbursed according to his taste or desire. They fled to this country from the oppression and the burden of European government, and established a free common wealth of American citizens, in the hope that through all the future their institutions might be preserved at small cost, with justice to all, with frugality of administration. Now, my fellow-citizens, if you will look at the census of 1870 you will find that the taxes of that year were fivefold what they were in 1860. It was five years after the close of the war, and yet the taxes were not only not reduced to 210 THE LIFE OF SAMUEL J. TILDEN. their former amount, not to once and a half, not to twice, not to three, not to four times, but they remained five times their former amount, and to-day they are very little reduced. I will not undertake to say here whose fault this is ; I suppose in some degree it is everybody s fault. It will be your own fault if you don t correct it. [Applause.] A FEW STARTLING FIGURES. Fellow-citizens, I had occasion at the beginning of the legislative session last winter to state to the legislative bodies and to the people that the taxes in the United States for the ten years following the war had been $7,000,000,000, 700,000,000 a year on the average for each of the ten years. Now, I submit to you whether this is not too large a proportion of all you can earn to be appropriated to such purposes. Think of it. Your national debt is but the amount of three years tax ation. Think of it ! You have built in the last forty years 76,000 miles of railroad. The nominal amount of their stocks and bonds might be something near $4,000,000,000, and in actual cost about $2,500,000,000. Fellow-citizens, the whole of this vast sum expended for these purposes is less than three and a half years of taxes. Try another illustration. You are very proud that you are the greatest gold and silver producing nation of the world. You boast that on your broad areas of fertile soil you raise crops to send abroad, to eke out the supply necessary to feed the populations of the Old World. You send forward your grain, gathered from every part of the Unit ed States. You send meat, you send cheese, you send other products of the farm. You send vast quantities of petroleum, and then you have one-crop the most of which is exported, the largest that any nation in the world ever contributes to the exchanges of mankind. I mean the cotton-crop, which yields from $200,000,000 to $280,000,- 000 a year to foreign exports. WHAT A BURDEN TAXATION IS. Now, my fellow-citizens, what is the result? When you have sent forward your gold and your silver, when you have sent forward your petroleum, when yon have sent forward your wheat, and your corn, and your cheese, and your meat, and your products of every kind ; when you have sent forward your cotton ; when you have raked and scraped this continent from the Lakes to the Gulf, from the Atlantic to the remote interior, what have you done ? When you have gathered together all these products and paid the cost of THE "CANAL KING" AND ITS OVERTHROW. 211 carrying them to the seaboard a cost often larger than the original cost of raising the products what have you done ? Why, with every exportable commodity of this continent arrived at our Atlantic ports and delivered into the vessels of foreigners, you have paid ten months of one year s taxes. INKOADS OF THE TIMES ON CAPITAL. I use these illustrations to present in as clear a manner as possi ble to your mind the burden of the system to which you are sub jected. In a speech which I made seven years ago, I pointed out this condition of things, and I said that while you could pay what you do pay during the swelling of values, out of the froth of appar ent and illusory wealth, when prices should come to settle to their ordinary condition, as they were sure to do, and nothing could pre vent .them from doing, then it would take not merely your earnings, it would take not merely your income, but it would trench upon your capital itself to pay such taxation. And now, gentlemen, while at that time it was difficult to get an audience, or find ears willing to listen, that change has come. It is upon you. No human contriv ance, no act of government, can prevent the reaction that has grown out of a fictitious condition of values. When it disappears and prices recede, then there settles around you, like a dark cloud, this weight of taxation, which you should have foreseen and avoided years ago. WHAT IS TO BE DONE. Fellow-citizens, I appeal to you, without reference to your party character or party affiliations, to join, each man for himself, in the great object of repressing and retrenching these evils. If you are a Republican, see to it that no Republican goes to the legislative halls except he represents you faithfully on this subject. If a Democrat, see that no man goes to represent you in the legislative bodies who will not do his entire duty to the labor and industry of the country in this respect. You have but to will it. The farmers, though they have ceased to govern the State of New York as completely and as exclusively as they did thirty and forty years ago, when they formed two-thirds at least, perhaps three-fourths, of the whole mass of voters, to-day exercise such a vast power that they control the result, if they will but determine to do it. They are interested in a peculiar degree in State taxation. In the city of New York, in all the cities of the State, the heaviest burden of taxation is from the municipal 212 THE LIFE OF SAMUEL J. TILDEN. taxes. But among the farmers in the rural districts the State taxes are about one-half, and the town and county taxes the other half of what the farmer has to pay. It is within your power to control the town taxes. It is within your power to control the county taxes. You have only to send men to Albany who will faithfully represent you, and you can control also the State taxes. THE WOEK ALEEADY BEGUN. We began last winter. It made great conflict and turmoil, of which you have heard. We began to cleave off the fungus-growth that had sprung up all over and all around our State institutions, and was smothering out their vitality. We have reduced already your taxes from seven and a quarter to six mills in the present year, and, if you will send next winter to the legislative bodies men who will join in this object, you can reduce the rate of taxation to four mills. AN APPEAL FOE ACTION. I present to you this object to-day. I invoke the attention of the farmer to this interesting subject. I call upon him to do his duty to himself, and his duty to all other citizens of this great Common wealth. Fellow-citizens, I don t propose to detain you to-day by a lengthened address. I speak to you in plain and homely language, directly, as man to man, in regard to your practical interests. 1 know perfectly well, understand perfectly well, the sentiments and inter ests, and the characteristics of your class. I lived among them so long, I saw them so intimately, individually, and in their social rela tions, that I believe I have little to learn in respect to them, and I commit to their fidelity, to their patriotism, to their devotion to the great interests of the country, the cause which I to-day advocate be fore yoti. It is not alone the saving of dollars and cents, but you cannot preserve your system of government unless you purify ad ministration and purify legislation. The evils of corrupt government are not confined to the money that is taken from the pockets of the people to enrich those who are not entitled to its enjoyment ; but the growth of such a system saps all public virtue and public morality, and at last governments of the people, by the people, and for the people, will cease to exist, as other republics in ancient times have perished, from the general demoralization and corruption of the peo ple. I put this subject to you to-day in simple and plain language, and I leave it in your hands in undoubting confidence that, so far as TEE "CANAL RING" AND ITS OVERTHROW. 213 you can depend upon the great agricultural masses of Central New York, they will do their duty, and their whole duty, to themselves and to the State. Bellow-citizens, thanking you for your kind and patient attention, and promising to myself an opportunity to see the products of your farming industries, yet to be exhibited at this fair, so far as I can do so by devoting the rest of the day to it, I bid you good-afternoon. The effect of the Governor s journey and speeches was noteworthy. It showed such a feeling in favor of his reform policy, existing throughout the State, and exhibiting itself most strongly in unexpected quarters, that the Republican leaders became frightened. They set to work to counteract his influence. The newspapers which had praised him in the spring, fell to criticising him with more vigor than ever. Several leading Republicans, finding what excellent work the Canal Investigating Commission had done, waited on Mr. Bigelow, the chairman of that commission, and asked him to accept a place on their State ticket. He courteously but firmly declined. He told them frankly that he was in hearty sympathy with Governor Tilden, and that the battle of re form, if it was won at all, would be won through him, after which they did not press Mr. Bigelow so strenuously as be fore. When the Democratic State Convention assembled at Syracuse in September, 1875, it was the opinion of the ma jority of the party that the issue of administrative reform should be made so clear and distinct that nobody could mis take its meaning. With great unanimity, Mr. Bigelow, who was a true representative of the independent voter, was nom inated for Secretary of State less, however, on account of his independence than because of his manly and masterly service in the work of investigation. Mr. Van Buren, another member of the commission, was named for State Engineer. Mr. Charles J. Fairchild, who, as Deputy Attorney-General, had instituted suits against the " Canal Ring," was nominated for Attorney-General. Mr. Daniel Magone, Jr., of the com- 14 THE LIFE OF SAMUEL J. TILDEN. mission, was chosen chairman of the State Committee. The ticket was framed not less in the interest of good govern ment than in a spirit of bold and uncompromising hostility to the " Canal Ring*." It encountered all the opposition it sought, and perhaps more. Every member of the " Ring," and every voter that each member could control, worked openly and se cretly to compass its defeat. That was to be expected. But some honest Democrats were misled by dishonest representa tives, and lost their interest in the canvass which was not to be expected. The Republicans, finding that they were mak ing some headway, worked with remarkable vigor, and, cheered by successes in other States, they came to believe that they would carry New York. Nevertheless, the Demo cratic State ticket was elected by an average plurality ap proximating twenty thousand. The Republicans, however, increased their majority in the Senate, and secured control of the Assembly. When the Legislature convened, on the 4th of January, 1876, it showed a disposition to find fault with all the Gov ernor had done in the way of canal reform. The Senate adopted a resolution of inquiry which is quoted in the fol lowing curt answer from the Governor : STATE OF NEW YORK, EXECUTIVE CHAMBER, [ ALBANY, January 18, 1876. To the Senate : In answer to the resolution of the Senate requesting the Governor " at the earliest possible day, consistent with the public service, to communicate to the Legislature the results of the investigation thus far obtained by the commission, with the testimony thereto pertain ing, and the titles and objects of the actions now pending, with the progress thereon made, and the names of the official charged with complicity or connivance as aforesaid, in order that the Legislature may, in view of the information thus furnished, determine what ap propriation, if any, or other measures of legislation, may be neces sary " I have the honor respectfully to state : 1. That the concurrent resolution, authorizing the Governor to THE "CANAL RING" AND ITS OVERTHROW. 215 appoint a commission to investigate canal affairs, passed in 1875, requires the said commission to report the testimony they shall take, together with such recommendations in respect to the same as they shall deem warranted by the facts, to the Governor and to the Legis lature at the opening of the next session. The commission have made a series of reports to the Governor, twelve in number, on special cases, and, I understand, are preparing with all diligence a general report to the Legislature in compliance with the concurrent resolution, which will embrace " all the results thus far obtained by the commission." 2. The several reports of the commission to the Governor have been, from time to time, transmitted to the office of the Attorney- General for his consideration as to what legal remedies in behalf of the State should be instituted. The conduct of such action is de volved by law upon the Attorney-General. The present incumbent, as the Senate is doubtless aware, from the day of his taking office was engaged at the Oyer and Terminer of Erie County in the trial of one of the cases arising out of a report of the commission until a week after the adoption of your resolution. For particular informa tion on the subject of this part of your inquiry, I respectfully refer you to that officer. In the passage of my annual message referred to by your resolu tion, I expressed the opinion that the object of primary and tran scendent importance in the measures connected with the administra tion of canals is "to reform the system and to establish every pos sible security against the recurrence of the evils." This object is to be attained by an exposure of the wrongs, by appropriate measures of legislation to prevent and punish similar wrongs hereafter by the enforcement of existing laws imposing pen alties upon the wrong-doers, and, as far as possible, by compelling restitution. Even in the narrow sense of pecuniary advantage to the, people, infinitely more is accomplished by breaking up the system than can be hoped to be recovered in civil action. If adequate proofs could always be had, complete restitution cannot always be effected; still less full damages for wastes committed to enable the illicit prof its to be gained which are often much larger than those profits. The expenditures in jobs connected with the canals have averaged from two to three millions of dollars annually. Nearly the whole of this amount can be saved to the Treasury or left in the pockets of the tax-payers without detriment to any public interest. For the pres- 216 THE LIFE OF SAMUEL J. TILDEN. ent fiscal year that saving has been accomplished irrespective of any litigations in the courts. There is no reason why the same saving should not be effected hereafter. The indictment, trial, and conviction of persons who have com mitted criminal offenses under existing laws have for their object the general purpose of remedial justice by deterring in the future from the commission of similar offenses. Civil actions by the State, while they have an incidental effect of the same nature, have the further and their main object of compelling restitution of the public money unlawfully taken. Indictments since the law of 18Y3 can be found at any time within five years of the time of the commission of the offense. Civil actions by the State for the recovery of money in such cases can, under the laws of 1875, be brought at any time within ten years after the cause of action occurred. The investigations of the commission, faithful and laborious as they have been, leave unexplored far more than has been brought to light. Official bodies like the Canal Board and the Commissioners of the Canal Fund ought to be clothed, as permanent standing authorities, with full powers of investigation, in their respective spheres, as to all wrongs done in respect to public moneys or property. The Comp troller, as the general fiscal representative of the State, and perhaps other public officers, ought to be vested with similar powers. It is quite manifest that it would overtask the powers of any one man to conduct the criminal and civil actions that have been and ought to be instituted for these objects. Vast sums stolen from the Treasury will be, as in similar cases they have been, employed in securing extraordinary service in legal ability, in professional experts, and in indefatigable activity to defend, by every technical artifice, the unjust possession. There is no force of detectives connected with the office of the Attorney-General, neither are the district attorneys his subordinates. The Attorney- General of the United States, on the other hand, has all of the district attorneys and all of the marshals and deputy- marshals, besides a large number of skilled experts, perfectly at his command ; and Congress every year makes a sufficient appropriation to meet whatever expenses may be necessary in the preparation of suits for trial. The actions growing out of canal frauds involve the examination THE "CANAL RING" AND ITS OVERTHROW. 217 of complicated facts relating to construction and the quality and util ity and value of the work, and they cannot be properly prepared or tried without the assistance of experts. It has been usual to make a small annual appropriation to enable the Attorney-General to employ counsel to assist him in the discharge of his official duties. The suggestion in my annual message, that the ordinary appropriation would be insufficient, but that a "special" appropriation would be necessary to enable him to enforce the rights of the State and to meet the just expectations of the people, had ref erence to the expenses necessary for preparing these suits for trial, and for conducting these trials. SAMUEL J. TILDEN. The Senate, finding the Governor so ready to answer its questions, hesitated about propounding any more. But, later in the session, he communicated to both Houses of the Legis lature the following succinct statement of the general results of the investigations : STATE OF NEW YORK, EXECUTIVE CHAMBER, ) ALBANY, March 24, 1876. [ To the Legislature : The results of the investigations ordered at the last session into the work on the Erie and other canals, purporting to be improve ments, and known in the language of our legislation as "extraordi nary repairs," have been submitted to you. They establish these conclusions : 1. The expenditures for these purposes, during the last five years, were, directly, about $11,000,000, and indirectly about $3,000,000, making $14,000,000, and involved taxation amounting to nearly $15,- 000,000. This is in addition to vast sums expended in former years. 2. The mass of the work for which these expenditures were made was of no real utility to the public. The waste in construction which furnished jobs to contractors, but was of no value to the State has been even larger than the illicit and fraudulent gains. 3. Most of the contracts were obtained by the system of unbal anced bids and other dishonest devices. 4. Much of the work was executed in violation of the contracts, and is worthless. The advantages to the State of the investigations have not been 10 218 THE LIFE OF SAMUEL J. TILDEN. limited to the discovery of the particular frauds ; nor even to the destruction of a system involving a vast annual loss to the tax-payers demoralizing to the public service and corrupting to all govern mental life. Incidentally, in arresting these practices, a fund has been rescued from spoliation out of which a real, important, and valuable improve ment can be effected in the main trunks of the canals. On the first of last month, there remained, as nearly as I can ascertain, of the funds applicable to extraordinary repairs and new work : . ; ; Unappropriated to specific objects $633,000 Existing appropriations for objects not under contracts. 360,000 Estimated as necessary to settle existing, contracts : Erie Canal $347,000 Champlain Canal. 30,000 Oneida Lake Canal 6,000 $383,000 Balance after selling contracts as proposed 300,000 Sum available for new work on Champlain Canal enlarge ment 270,000 Oneida Lake 41,000 $1,604,000 While this branch of the subject is under consideration, it is desirable that the reader should understand how large a saving has been effected in the State of New York by a wise administration of affairs. For this I append : MEMORANDA FILED WITH TAX-BILL BY GOVERNOR TIL- . DEN IN THE OFFICE OF THE SECRETARY OF STATE, 1876. ASSEMBLY BILL No. 274, entitled " An act to authorize a tax of three-tenths of a mill per dollar of valuation to provide for deficiency in the sinking-fund under section 3 of Article VII. of the constitu tion." Not approved. This bill authorizes a tax of three-tenths of one mill to meet the deficiencies in the canal sinking : fund in obedience to section 3 of Article VII. of the constitution. The valuation, as nearly as can THE CANAL RING" AND ITS OVERTHROW. 219 now be ascertained from the reports of the assessors in the Comp- troller s fc office, is $2,390,803,696. The produce of this tax, computed on that valuation, would be $717,241. This bill came into the Executive chamber on the 27th day of April. It is rendered unnecessary by a subsequent act, which came into the Executive chamber on the 4th of May the day after the ad journmentand which provides for paying these deficiencies without a tax. This latter bill, in accordance with my special message of March 24, 1876, in relation to the canals, provides for the completion or cancellation of pending contracts for extraordinary repairs, and for the application of $1,600,000 of money, yet unexpended, which had been reclaimed from the folly, waste, and fraud incident to those expenditures. It contained two appropriations for real improvements to the Erie Canal. The one was $400,000 for bottoming it out an d restoring it to the lawful depth of seven feet. The other was the subsequent use of $800,000 to go on with like improvements in the water-way, which would facilitate and quicken the transit of the boat by deepen ing the volume of water through which it should move on the levels. No doubt a measure so practical, so simple and economical, would lessen the cost of transportation, and would be of more real service to the navigation than ten millions expended in the usual manner. At the very close of the session, the chairman of the Canal Com mittee of the Assembly, who had supported such improvements on the Erie Canal as well as on the Champlain, came to me with the in formation that the latter appropriation of $800,000 for the Erie would fail in the Senate, which had manifested opposition to these measures. The next best use of the rescued moneys seemed to be to pay debts and remit taxes. An amendment was prepared making that change. It was adopted fifteen minutes before the close of the legislative session. I have signed that bill, and now reject this. TAXES FOE 18H AND 1876. The taxes for 1874 were 7 mills on a valuation of $2,169,307,873. They amounted to $15,727,482. The taxes for 1876 will be 3 mills on a valuation likely to be, as nearly as can now be ascertained, $2,390,803,696. That would produce $8,268,196. This result approximates to the ideal proposed in my last annual message of reducing the taxes for 1876 to one-half those of 1874. 220 THE LIFE OF SAMUEL J. TILDEN. , It has been worked out, notwithstanding an increase of $276,869 in the tax for schools, caused by an increase of valuation applied to a system which makes the assessors the real arbiters of the amount of the tax, and which has increased it a million in the last few years. And, also, notwithstanding $200,000 is included for the Commission ers of Emigration, which is, in effect, a loan. DEBTS PAID IN 1874 AND 1876. In 1874 the appropriations for sinking-funds were: Bounty debt sinking-fund $4,260,000 Canal floating debt sinking-fund 198,888 Total in 1874 $4,458,888 In 1876, the appropriations to the bounty debt sinking-fund were: Proceeds of one-third mill tax $796,934 Surplus of tax last year unappro priated till now 475,560 Premium actually realized thus far by Mr. Robinson s conversions 750,207 Making - - $2,022,701 The appropriations for the canal debt sinking-fund were : From moneys reclaimed from extraor dinary repair-fund for principal. . .$630,325 For interest 93,032 , 723,357 Total in 1876 2,746,058 Less applied to sinking-funds in 1876 than 1874 $1,712,830 In round sums, a million and three-quarters less has been absorbed into the sinking-funds in 1876 than in 1874; but of the two millions and three-quarters, which have been or are to be so absorbed in 1876, two millions come from savings and economies, and the tax for the sinking-fund in 1876 is thereby reduced to three-quarters of one . million. ITEMS OF SAYIXGS. Of this two millions of savings, the item of $475,000, carried over from the taxes of last year and now first appropriated, and the item of $723,000 now rescued from the extraordinary canal wastes, THE "CANAL RING" AND ITS OVERTHROW. 221 have been explained. The other item, $750,000 of realized pre miums, remains to be explained. In the report of Comptroller Hopkins, dated January 4, 1876, it was estimated that the balance of interest to be paid by the bounty debt sinking-fund over that to be received by it would be $893,767, but that the premium on the securities held by the sinking-fund would amount to $1,200,000, and a surplus over the balance of in-. terest would remain, amounting to $306,233. These premiums were nearly all on long stocks of the State and United States, payable in gold. On the resumption of specie-pay ments, or the approach of that result, or a general public expectation of it, most of those premiums would vanish. A loss of one-quarter of them would extinguish all the surplus beyond the adverse balance of the interest account. Successful financiering in private or public affairs depends largely upon the disposition to seize the opportune moment for converting favorable possibilities into certainties. I vent ured in the last annual message to suggest the application of the sinking-fund to the payment of the debts. This suggestion, and the more explicit reasons now disclosed, would probably have gone for nothing if Mr. Comptroller Eobinson had not come into the charge of the State finances. His own notions of sound finance dictated a policy which he has, as far as has been practicable, executed with rare sagacity, judgment, and skill. In four months, he has bought in $4,625,900 of the bounty debt by exchanges and by conversions of assets and purchase of State liabilities. He has realized $750,207 of these premiums, being $255,631 in excess of the estimated value of the assets, converted after deducting the premiums on the debts bought in. SOURCES OF ECONOMIES CAUSING THE KEDTICTION OF TAXES. The whole saving in 1876, as compared with 1874, allowing for the excess of the appropriation for schools of $276,869, and the loan of $200,000 to the Commissioners of Emigration, is $7,936,155. Of that sum $1,712,830 is in the diminished payments on debts. All the residue, $6,223,325, is in real economies. SAVINGS. The application of savings, from former taxes and from the ex penditures for which they were levied in the particulars mentioned, furnishes $1,949,004. 222 THE LJ FE OF SAMUEL J. TILDEN. CANAL EXPENDITURES. The diminution of certain canal expenditures furnishes $2,372,680. The taxes for these purposes were in 1874. 1876. Extraordinary repairs $1,898,144 None. Awards and outlays in excess of appropriations, 474,536 None. $2,372,680 all of which was saved. GENEEAL EXPENSES (including Capitol and asylums and reformatories, and excluding increase of tax for schools and advances to Emigrant Commission) : 1874 $6,007,620 1876 4,005,887 Saving .- $2,001,733 RECAPITULATION. Saving applied $1,949,204 Canal retrenchments 2,372,680 General retrenchments 2,001,733" Total $6,353,617 It thus appears that nearly eighty per cent, of the reduction of eight millions in State taxes was directly produced by these economies. OTHER RETRENCHMENTS. Expenses paid out of the revenues and funds of the State, though they do not in the first instance affect the taxes, ultimately come to that result when they have to be replaced. They are, therefore, equally worthy of attention. ORDINARY CANAL-REPAIRS. 1874. 1876. Saving. Current $1,424,510 $1,120,600 $303,910 Deficiencies 250,000 156,879 93,121 Total saving $397,031 RE APPROPRIATIONS. These are paid out of cash in the Treasury : 1874. 1876. Saving. $917,379 None. $917,379 THE "CANAL RING" AND ITS OVERTHROW. 223 EECLAMATIONS. The reclamations of moneys in the Treasury from unexpended appropriations for extraordinary repairs amount to $1,604,000. A considerable sum in addition may be expected. SEDUCTIONS IN 1875 AS COMPAEED WITH 1874. Extraordinary repairs $1,898,144 Ordinary repairs 415,360 Awards and outlays hi excess of appropriations 40,674 Reappropriations 677,240 $2,931,413 EEDTICTIONS IN 1876 AS COMPAEED WITH 1874. Extraordinary repairs $1,898,144 Ordinary repairs 397,031 Awards and outlays in excess of appropria tions 474,536 Reappropriations _l 1 .!f!! $3 ,687,090 This is besides the reclamation of money realized to the extent of $1,600,000, .and likely to reach $2,000,000. In the mean time, no interest of the State has been injured or neglected. The appropriation for the new Capitol for the present year, of $800,000, will yield more means to pay for new work than the usual appropriation of $1,000,000 ; for the fresh construction will start without any of the arrears which have heretofore encumbered its progress. The appropriation of nearly $500,000, for continuing the construction of asylums and reformatories, is made more effective by being carefully applied to the completion of specific portions to be brought into use. The people may have the satisfaction of feeling that, while half of their State taxes are remitted $8,000,000 out of $16,000,000 it is accomplished without improvidence of the future or -temporary re trenchment which cannot be maintained ; and that the appropria tions have been kept clearly without the means provided by the taxes levied ; so that no temporary floating debt will be created, or inva sion of the sinking-funds made, as has often, and to a large extent, happened hitherto, in disobedience to the express commands of the constitution, and in violation of the whole scheme and policy of that instrument, in reepect to the State finances. 224: THE LIFE OF SAMUEL J. TILDEN. This saving of one-half the taxes in the State of New York is the final outcome of that system of administrative reform which was fairly instituted when Governor Tilden de clared war against the " Canal Ring." On the 19th of March, 1875, the " Ring " was in the fulness of its power. The Legis lature was preparing to appropriate the usual sum for extraor dinary repairs. There appeared to be no inclination to re trench the expenditures in any direction. Many of the New York law-givers concurred in the opinion expressed more re cently by the Republican Senators in Congress, that economy could not be practised without " crippling the Government." Mr. Tilden thought otherwise. He struck blow after blow at the system of corruption and extravagance, till the whole rot ten fabric fell to the ground. The " Canal Ring " is destroyed. One of its members is a convicted felon, and over the heads of half a dozen others in dictments hang. The enormous sum which it annually secured for fraudulent contracts is wrested from the people no more. Its destruction has led to a general overhauling of other ex penditures, and to the substitution of better methods of finan cial administration. If this same good system were extended over the area of the Federal Government, would not the re sult be desirable ? CHAPTER XIX. THE GOVERNMENT OF MUNICIPALITIES. ON the llth of May, 1875, Governor Tilden submitted to the Legislature a special message on the question of municipal government. It is a subject to which he has given much thought and attention. Born and reared in a country town, he went to New York as a young man, and, for a long period of years, he has watched the dangers against which he warns others, and considered the remedies which he recommends. The subject of the message is of such general interest, and the treatment of it is so philosophical and exhaustive, that it is herewith reproduced. STATE OF NEW YORK, EXECUTIVE CHAMBER, ) ALBANY, May 11, 1875. j To the Legislature : The constitution (Article VIII., section 9) declares that " It shall be the duty of the Legislature to provide for the organi zation of cities and incorporated villages, and to restrict their powers of taxation, assessment, borrowing money, contracting debts, and loaning their credit, so as to prevent abuses in assessments, and in contracting debt by such municipal corporations." The convention of 1846, having exhausted its sessions in the con sideration .of questions upon which it acted, and finding itself unable to deal adequately with, the problem of municipal government, on the day before its adjournment, charged that duty upon the Legisla ture. Its primary object was to protect tax-payers in the municipali ties against abuses on the part of local governing officials, in taxation for local administration, in assessments for local improvements, in the contraction of municipal debts, and in the loaning of municipal credit. Those evils had already attracted attention, though they were at that time but in the beginning of the monstrous growth to which 226 THE LIFE OF SAMUEL J. TILDEN. they have now attained. In the twenty-nine years which have elapsed the increase of population in this State has been chiefly in the cities and incorporated villages, until, at the census of 1870, those organizations embraced more than two millions, and now about two millions and four hundred thousand of our people. The course of legislation, so far from obeying the injunction of the constitution, has been mainly in the opposite direction. Every annual statute-book has been largely occupied with enact ments favoring the growth of municipal expenditure, involving taxa tion,, assessments, the contraction of debt, and the loaning of credit. The result, so far as the cities of the State are concerned, is shown by an abstract of- reports from the twenty-four cities, which have been furnished to me by the local officials, and which .1 herewith transmit to your honorable body. MUNICIPAL TAXATION. The aggregate valuation of property in these .cities, subject to taxation in 1874, was $1,569,535,074. The aggregate of city taxation was $30,439,121. The aggregate county and State taxation was $13,990,487. The aggregate of taxation was $50,429,609. The aggregate debt of these cities was $175,657,267. Computing the taxation and debt on the population of 1870, add ing twenty per cent, for subsequent growth, the city taxation was $15.57, the county and State taxation $5.98, and the aggregate was $21.55 for each inhabitant. The city debt was, for each inhabitant, $75.80. It .must be borne in mind that the proportion of the assessed valu ation of real estate to its actual value is fixed in these reports accord ing to a standard from which there is now a large reduction. The average of the assessment is 55.43 per cent, of the true value. If the recent fall in marketable values be estimated at one-third, the rate of the assessed valuation would be eighty per cent, of the actual value. It may be presumed that the values stated in these reports have reference to real property. No allowance is made for the undervalu ation of personal property. It is probable that, in many instances, the taxation imposed upon property in cities has been from one-quarter to one-third, and by the THE GOVERNMENT OF MUNICIPALITIES. 227 decline of rents is now one-third, and sometimes reaches one-half the income of real estate. In 1853, when the population of the United States numbered twenty-five millions, the whole cost of its Government was under $55,000,000. It will be seen that less than two millions and a half of inhabitants of the cities of New York pay nearly as much taxa tion as was imposed on twenty -five millions, about twenty years ago, for the cost of the army, navy, Indian treaties, and all other ex penses of the General Government. As I remarked in my annual message : "In the decade beginning July 1, 1865, the people will have paid in taxes, computed in cur rency, seven thousand millions of dollars. Three-fifths were for the use of the Federal Government, and two-fifths for the State and municipal governments. It is doubtless true that some portions of the municipal expenditures were for objects not strictly govern mental. But it cannot be questioned that much too large a portion of the whole net earnings of industry, and of the whole net income of society, is taken for the purpose of carrying on government in this country. The burden could more easily be borne when values were high, and were ascending. As they recede toward their former level, the taxes consume a larger quantity of the products which have to be sold in order to pay them. They weigh with a constantly-in creasing severity upon all business and upon all classes. They shrivel up more and more the earnings of labor. This condition of things ought to admonish us, in our respective spheres, to be as abstinent as possible in appropriations for public expenditures. If the cost of government in our country were reduced, as it ought to be, one-third, it would still be larger than a few years ago, taking account of the prices of the products, which, in order to pay that cost, we are com pelled to convert into money." CONSEQUENCES. The burdens upon tax-payers in cities are exhibited in various ways : bills for relief by the temporary funding of floating debts ; bills authorizing loans to carry on or complete permanent improve ments; frequent appeals from tax-payers against the measures of local officials, so numerous that it is quite impossible to arbitrate intel ligently between the contending parties, are among the incidents of the times. The choice, between the opposite evils which such cases present, 22S THE LIFE OF SAMUEL J. TILDEN. is often difficult and the result unsatisfactory. Works by the locali ties, as by the State, which ought not to have been undertaken, or which are on a scale too expensive or extravagant, are advanced so near to completion that it is not expedient to refuse the means, to finish them, or not proper to overrule the local officials without a more intelligent and assured personal judgment than is possible. It will not do to enforce the rule that loans for permanent improve ments shall be accompanied by a sinking-fund in many cases where there was no notice. But I have refused to sanction a bill diverting funds, raised by permanent loan and not needed for its original pur pose, to current expenses, and I have insisted that, in funding floating debts, the loans should be but temporary until the deficiency could be provided for by taxation. It has been impracticable to at once inaugurate a better system. The whole subject requires a careful and thorough investigation, and the adoption of a fixed policy which shall be known to the people, and to which they shall conform. JUDICIAL REMEDIES. It is but just to the present Legislature to say that the three bills which it adopted with great unanimity, providing judicial reme dies against frauds, affecting the public moneys or property, are of more value for the repression of the evils of municipal government than all the legislation which has taken place during the twenty-nine years in which the mandate of the constitution, in respect to munici pal administration, has remained unexecuted. It is true they reach abuses only when extravagance and improvi dence degenerate into bad faith or fraud, but they apply to every official of every city, as well as to all State, county, and town func tionaries. They apply to every case in which a city official shall, with intent to defraud, wrongfully obtain, receive, convert, pay out, or dispose of, any public moneys, funds, credits, or property. They apply to every case in which such an official shall, with like intent, by will fully paying, allowing, or auditing any false or unjust claim, or in any other manner or way whatever, aid or abet any other person in wrongfully obtaining, receiving, converting, paying out, or disposing of any public money, funds, credits, or property. They apply also to every person who, dealing with any official, shall, with intent to de fraud, wrongfully obtain, receive, convert, pay out, or dispose of, any THE GOVERNMENT OF MUNICIPALITIES. 229 such money, funds, credits, or property. They sweep away the complicated technicalities by which conviction for such offenses has hitherto been embarrassed or defeated. One of these acts provides for every such offense penalties ade quate to its enormity, in imprisonment in the State-prison for not less than three nor more than ten years, and a fine not exceeding five times the amount of the. loss resulting from the fraudulent act. Another provides for the arrest of the person and the attachment of the property of the wrong-doer. The third of these acts provides for the contingency that the local governing officials shall be able to exercise influence over the officer whose duty it would be to order an action for redress of such a wrong, or whose duty it would be to conduct the suit ; OF, where a local influence might be exercised upon the judiciary ; and enables the injured tax-payer to appeal to the State for relief, and gives a method of procedure both rapid and effective. These laws, when they come to be generally known to the people, cannot fail to exercise a very salutary restraint upon all official per sons. They afford a system of remedies hitherto unknown in our jurisprudence, which for their special purposes may well be deemed comprehensive, complete, and effective. ADDITIONAL MEASUEES. Additional measures of remedy and restraint can no doubt be devised in the legislation for local government. The tax-payers should be invested with powers of association and organization for the purpose of investigating the doings of their local officials and enforcing publicity, and for the purpose of instituting suits in the courts to restrain and redress public wrongs, without having recourse to the ultimate resort designed for great cases, in an action by the State. They might also be endowed with capacity to take and exe cute contracts for public work, under the supervision of and on the plans fixed by the municipal officers. There is no reason, for in stance, why the persons taxable for the improvement of a street should not be allowed to associate, and by their own agents execute the work for which they pay. Even then a still broader field opens for measures of reform. To define the powers of the local governing officials in matters of ex penditure, taxation, assessment, and to create an effectual responsi bility of those officials to the voters of the locality, to establish 230 THE LIFE OF SAMUEL J. TILDEN. official accountability on their part, to adopt the machinery most favorable to good administration these are the objects which con cern 2,400,000 of our people more deeply,, perhaps, than any other question of administration that invites the public attention. DUTY OF THE STATE. The duty of the State to establish constitutional provisions and to enact laws protecting, as far as practicable, the inhabitants of cities from abuses of maladministration committed by the local governing officials, and preserving the rights of individual citizens and of the minority as against the majority, is undeniable. That obligation results from the relations which exist between the State in its collective capacity and the local divisions of the State, and be tween the State and the local officers. In the theory of our civil polity, the sovereignty of the State, subject only to the grants it has made to the Union, resides in the aggregate people of the whole State. All powers vested in the cities and incorporated villages, and in the municipal officers, and all powers vested in county and town officers, are theoretically delegations from the people, made by the constitution or by laws authorized by and in pursuance of the constitution. At the same time their utility for the purposes of local administration is so recognized by the sentiments of our people that it has come to be jnstly considered as an obligation to make them and a right to receive them. The powers intrusted by the State to the local officials are admin istrative, special, and for local objects. In the most completely de veloped municipality they embrace the care of police, health, schools, street-cleaning, prevention of fires, supplying water and gas, and similar matters most conveniently attended to in partnership by per sons living together in a dense community, and the expenditure and taxation money for these objects. The right of persons, property, and the judicial systems instituted for their preservation general legislation government in its proper sense these are vast domains which the functions of municipal corporations and municipal officers do not touch. PEOGBESS OF LOCAL SELF-GOVERNMENT. The first constitution of this State, formed in 1777, provided for the appointment and removal of all local officers by a council com posed of the Governor and four Senators chosen every year by four THE GOVERNMENT OF .MUNICIPALITIES. 231 subdivisions of the Assembly. The system continued until it involved .the selection of fifteen thousand officers civil and military when our population was but one-third of its present magnitude. Every year assembled in Albany, from all parts of the State, candidates and their friends, for a general scramble. The strifes of parties were in tensified by personal selfishness, and aggregated in a single centre. The evils of the system contributed to the calling of a convention which formed the constitution of 1821. That instrument substituted election by the people of the locali ties or appointment by the local authorities, in respect to a large share of the local officers. The question of how to disperse the ap pointing power, and yet preserve accountability to the State, was very thoughtfully considered by the foremost statesmen. Its solu tion was found in a device proposed by Daniel D. Tompkins, which was to separate the power of appointment from the power of re moval. The case of the sheriff excited the most solicitude and was elaborately discussed. It was disposed of by giving the election to the people of the county, but reserving to the State the power of re moval for cause, to be exercised by the Governor. The same method was applied to county clerks. The constitution of 1846 extended the system to district attor neys and coroners. It has been applied by constitutional provision or by statute to many other cases, and is now in operation as to the principal officers of the counties, probably embracing five hundred in number. A procedure has grown up in the nature of a summary trial. The convention of 1846 carried much further its dispersion of the power of choosing local officers. It even allowed an election by dis tricts of judges of the Supreme Court having general State jurisdic tion, but it provided that they should be removable by impeachment, and also by the two Houses of the Legislature. County judges, sur rogates, and all other judicial officers elected within the county, and all commissioned, officers of the militia who are elective, were made removable by- the Governor and Senate. Indeed, it is a characteris tic peculiarity of the present constitution to distinguish between the power of electing or appointing an officer and the power of holding him to an account. In the words of my annual message: "It is while dispersing the one to the localities, to reserve the other to the State, acting by its general representatives and as a unit ; to retain in the collective State a supervisory pow-er of removal, in addition to 233 THE LIFE OF SAMUEL J. TILDEN. whatever other accountability may result to the voters or authorities of the locality from the power to change the officer at the expiration of his term, or from special provisions of law. The two ideas are not incompatible; on the contrary, each is the complement of the other. Such dispersion of the appointing power has become possible only because these devices have been invented to preserve accountability to the State." Through all our constitutional history the tendency has been to enlarge the power of localities in the management of such local affairs as are usually intrusted to their administration. This policy has been developed not merely by conferring the power of local election, or of appointment by local authority of the officers on whom the duties of local administration are conferred, but also by the gradual enlargement of those duties. ITS PRINCIPLE. The political philosophy which has inspired this policy is founded on the theory that the individual is the best judge of whatever con cerns himself exclusively. It aims to enlarge the domain of the indi vidual conscience and judgment as much as practicable, and to limit and simplify the action of the government in the affairs of individu als. A deduction from this philosophy is that, where individuals are associated in a city, or incorporated village, or even in those subdi visions of the State that are termed in the law quasi corporations, there are certain powers of administration, mainly concerning the in dividuals so associated, which may be safely intrusted to their man agement under a proper organism, and in which they will be the best judges of the measures most wise and most adapted to their actual condition. The development of this system belongs to the sphere of practical government, and is to be worked out progressively. Of the general truth of the theory and of the wisdom of this system, I entertain no doubt; and I have always endeavored to pro mote its wise application, and to try, by its principles, the measures which have been presented in its name. ITS CONDITIONS. The essential conditions of local self-government or home-rule in respect to those powers of administration which are intrusted to the locality are : 1. That there be an organism under which the elective power of THE GOVERNMENT OF MUNICIPALITIES. 233 the people can act conveniently and effectively, and can exercise an actual control at one election over those who represent it in the local administration. . 2. That, in voting upon the administration of local affairs, the po pular attention and the popular will be freed, as far as possible, from disturbing elements, especially from complications with State and national politics. The ancient system which exists in the country, and worked well in New York for a generation, by which municipal elections were held at a time intermediate of the annual State and national elections, has always commended itself to my judgment as of great utility and value. 3. That the -popular will, as declared at the elections, should be protected, as far as possible, from the effects of undue concentration of power, patronage, and the means of corrupt influence. 4. That while the responsibility of public officers to the voting citizens be made effective, and they be made amenable to the tax payers of the locality through the courts, accountability to the State be preserved through regular methods, so that the existence of such appeal of the minority and of individuals against the wrongs of governing officials will render unnecessary and inexcusable the frequent legislative interventions which have practically destroyed all self-government, created more local mischief than they have remedied, and have grown to be prolific of abuse and corruption in the legislative bodies. So far from official accountability in regular forms being an abridgment of local self-government, it is the foundation on which this system can alone be built up. Arbitrary or irresponsible power finds no place in our popular system of government. The public officers are the trustees of the people. The majority are trustees for the whole, for the minority, and for each individual. At the present time the Senate and Assembly, and the Governor, are largely occupied by attention to measures which are in the nature of appeals from the local administrative officials. Legislation is daily asked for, not merely for the purpose of enlarging or modifying the powers of those officials according to the local wants, but for over ruling their judgment, correcting their errors, and redressing their wrongs. The granting or refusing of such legislation often involves questions of extreme difficulty, to investigate and decide the merits of which is quite beyond the power of the legislative bodies, or the 234 THE LIFE OF SAMUEL J. TILDEN. Governor, especially in the multitude of topics that accumulate in the closing weeks of the session. EXPERIENCE OF THE METROPOLIS. The most instructive chapter on the subject of municipal govern ment which is to be found in our civic history, is the experience of our great metropolis, which stands so conspicuous, not only in this State but throughout the Union and before the world. As great cities are rapidly growing up in other parts of the State, we may study that experience with advantage. Anterior to the constitution of 1846 the practical governing population of this State was agricultural. Comparatively little attention had been paid to municipal government. In that instrument, while county and town systems received comparative protection, the charters of cities and incorporated villages were left almost absolutely within the control of the Legislature. CHARTER OF 1830. The city of New York had gone on under a simple, popular gov ernment which had many elements of great value. Substantially, the administration was conducted by the mayor, and two boards of the Common Council, their committees, and the officers appointed by them. The elections were separate, in the spring of the year, and were an nual. Popular opinion easily became effectual in controlling the policy of government. A political revolution was frequently pro duced by the charge of excessive expenditure on the part of the city government. The liability to change, the exposure to publicity, made any elaborate and prolonged plans of plunder unsafe, if not impos sible. It is not meant that the deterioration that afterward ensued is to be ascribed wholly to the new methods of government adopted. INJURIOUS CHANGES. Doubtless important changes have -occurred in the conditions under which the municipal government is carried on. Changes in the popu lationa loss of the habit of acting in city affairs, resulting from the inability to act with effect during twenty years in which the elective power of the people has been nugatory decay of civic training, forced exclusion and voluntary withdrawal from participation in local government for a generation the absorption of the public at- THE GOVERNMENT OF MUNICIPALITIES. 235 tention in the controversies of national politics, leading to an almost total neglect of the questions of administration on which the compe titions of politics formerly turned the vast disproportion in the numerical strength of parties formed on sectional questions : these are causes which make the machinery of popular government work less favorably than before. But it cannot be doubted that various changes, originating in a false theory of government and continuing through a series of years, by which the legislative power was very much weakened, and the spending officers became not only exempt from any regulation by the legislative bodies and practically irresponsible, but by means of their patronage acquired practical control in the government, and a com plexity of system by which the elective power of the people became ineffectual were steps in a downward progress. INTERFERENCE WITH LOCAL GOVERNMENT. The abuses and wrongs of the local administration which found no redress generated a public opinion under which appeals were made, in the name of reform, for relief to the legislative power at Albany ; and it was found that an act could be easily contrived whereby one official could be expelled from office, and, by some de vice, a substitute put in his place. It was found likewise that the powers of an office could be withdrawn and vested in a different officer or in a commission, the selection of which could be dictated from the State capital. It is the experience of human government that abuses of power follow power wherever it goes,. What was at first done, apparently at least, to protect the rights of the minority or of individuals, what was first done for the sake of good government, came in a little time to be done for the purposes of interested individuals or cliques. Dif fering in politics as city and State did, party selfishness and ambition grasped at patronage and power, and the great municipal trust came to be the traffic of the lobbies. Institutions wholly unfit to answer any use or object of government in a civilized community, and by virtue of their structure capable of nothing but abuses growing into crimes against the communities in which they existed, such as the board of supervisors, erected in 1857, came into existence under the motive power of the division of the spoils which they partitioned between their contrivers, combining equal numbers from both par ties. 236 THE LIFE OF SAMUEL J. TILDEN. 4 CHAETEE OF 1870. The consummation of this deceptive system was in the charter of 1870, which was enacted in the name and under the pretense of re storing local self-government. It was a long document, full of minute regulations, copied from preceding laws; but its vital force and real object resided in a few sentences. It totally stripped the elective councils of all legislative power, and covered up that design by sev eral pages, in which it enumerated ordinances the councils had, from time immemorial, power to establish, but which had. never been thought worthy of mention in any previous act of legislation. It practically vested all legislative power in the Mayor, Comptroller, Commissioner of Public Works and the Commissioner of Parks. It vacated the offices of the existing incumbents at the end of five days, and. provided for the appointment of their successors by the then existing mayor, who was one of the quartet. Every device to make these four officers totally irresponsible was carefully adopted. The existing law, which had stood for many years, by which the mayor, Comptroller and Street Commissioner had been removable by the Gov ernor, as in the case of sheriffs, was repealed. A restoration of that power of removal, as regards the mayor, was demanded in the follow ing year, and in 1873 was accorded, with the unanimous consent of both political parties. This charter, which practically put in abeyance the elective power of the people of the city of New York for years, and set up an oligarchy of four persons, who, aided by a subsequent amendment, had all powers of expenditure and taxation of legislation and admin istration over a million people was enacted under the pretense of restoring local self-government. It was objected at the time that those officers so appointed were, to all practical intents and purposes, a commission, just as under the system which was to be abolished ; that they were in effect as much appointed by the State Legislature as as if their names had been inserted in the law ; and that the elective power of the people was annulled, and rulers set over them without their consent. How unanimously that charter passed by what barter of the municipal -trusts and corrupt use of municipal money and how, within a. month, the officers placed by a legislative act, without the intervention of a new election, in supreme dominion over a million of our people, divided up four millions of a pretended audit of six millions are now matters of history. These were the fruits, not of THE GOVERNMENT OF MUNICIPALITIES. 237 a popular election, not of local self-government, but of the culmina tion of a system under which the governing officials had been practi cally appointed by legislative acts of the State. The device of creat ing a special appointing power to do what was desired by a clique or party, or was agreed upon beforehand, was not perfectly new. It had been frequently used in a smaller way. The contagion of such practices threatens to extend to other cities. If public opinion and the state of the constitution and laws allow it, the temptation to transfer the contest for offices from the local elec tions to the legislative halls will arise as often as aspirants are de feated and can expect to recover there what they have lost at home. There is no remedy but in the refusal to give to such devices the sanction of law, until constitutional provisions shall give permanency to the methods of appointment and removal in municipal governments. 1873. The charter of 1878, while it contains many provisions that are valuable, still leaves to the heads of departments the power to create officers and fix their salaries, which no one has ever thought of con ferring on the Governor or the Comptroller of the State, who are properly subject to the specific and minute regulations of law ; and it leaves all the power of levying taxes, spending money, contracting debt to a large extent, and all the powers of legislation in the hands of the Mayor, Comptroller, President of the Board of Aldermen and the President of the Department of Taxes. In the hands of every one of the present incumbents, we have the satisfaction to believe that the interests of the people are perfectly secure; but we ought to consider what manner of institutions shall be formed for the long future, with its varied changes of official per sons whether we will continue such vast powers having no parallel in any government. The charter of 1873 sought to shun the defect of the charter of 1870 in respect to removal. It restored the power of the removal of the mayor by the Governor. It provided for the removal of heads of departments by the mayor, subject to the written approval of the Governor, thus establishing an artificial check upon an artificial sys tem ; aiming to secure independence except in case of official miscon duct on the part of the members of the body on which it conferred such extraordinary powers ; and shrinking from converting an oligar chical into a despotic system. 238 THE LIFE OF SAMUEL J. TILDEN. At the present session, various propositions have been introduced, and others have been suggested, for changing the powers and patron age of the city government. None of them have come before me for official action. No comprehensive or well-considered system has been proposed. Hasty and partial changes by law, which, however plausible on their face, cannot be judged of except through an ac quaintance with the whole mass of preceding legislation upon which they operate, and likely to produce results not foreseen by their au thors, were not desirable. In the better times of government and legislation in this State, when the traditions of popular rights were respected, the formation of a charter for a great city was a matter of deliberation. The people to be affected were fully consulted. Generally a convention of their representatives was held to consider the matter, full opportunity was given to discuss and perfect so important an instrument. The people were allowed to elect their chief officers with a knowledge before hand of the substantial nature of the powers these officers would ex ercise. The idea of working a total revolution in the depositaries- of governmental powers, by a legislative act, without the intervention of an election that should allow the people to say on whom new and vast powers should be conferred, would have been treated as a gross invasion of the rights of the people. Even in restoring the legislative power to a legislative department of the city government, the new Legislature ought to be formed ac cording to the best traditions and the best experience of American government ; and the people ought to be allowed to choose it at a fresh election, and in contemplation of the new powers conferred which amount to a new creation. I am not inclined to tamper by inconsiderate and fragmentary legislation with the government of the metropolis, or of the other great cities of the State, but I feel profoundly the necessity of atten tion to the structure, power, and duties of those governments ; and when we do constitute a new system I am anxious that it should an swer the just expectations of the people. .There is no subject which to-day interests them more deeply ; no subject more complicated or more difficult of solution ; none which requires more thoughtful at tention, more thorough discussion, to mature results with which we shall be satisfied in future years. There is no case in which it is more your duty and mine to say to those who seek changes : " You must found your claim to the advantages of political and official THE GOVERNMENT OF MUNICIPALITIES. 239 power upon the best promise of good government in the nature of the institutions you propose. You must accept official accountability as a condition of official trust." I have set forth some of the evils which have followed the viola tion of sound principles of government in the city of New York, not only to show the wrongs to which the people of that municipality have been subjected, but also to illustrate the dangers which threaten other cities, unjess we can fix sound principles in the minds of our people and make them operative in the legislative bodies or intrench them in the constitution. The people comprised in the cities of the State, exclusive of New York, are to-day more numerous than the inhabitants of the metropo lis. They form a larger portion of the population of the State. This is exclusive of the incorporated villages. If local self-government or home-rule is to be secured to them, and they are to be protected from the abuses which naturally hap pened earlier in New York, it must be done by the establishment of a general system, which shall be respected by the people and by their representatives. The Legislature is burdened by numerous ap plications for changes in local laws, the operation of which on the preexisting mass of legislation cannot be easily ascertained. This obscurity is often a cover under which the objects of selfish indi viduals-- or cliques, or partisan purposes, are concealed. Every revo lution of politics in the locality or in the State is followed by efforts to change the governing power or to effect a new disposal of offices and patronage in the locality. Such demoralizing efforts could not be readily effectual if well-defined principles of government pervaded all municipal charters. Diversities will no doubt continue to be un avoidable, but the advantages of general laws over special legislation, now recognized in our political theories and maxims, should be ex tended, as far as practicable, to our city governments. Whatever can be accomplished by legislation to correct the evils growing out of the discordant charters which now exist, and to infuse into them general principles that shall become a guide to future legislation, ought to be done. But the only effectual remedy is in amendment of the constitution fixing the general plan of municipal government, especially in respect to the appointing power, and at the same time establishing on a durable basis official accountability. With a view of calling public attention to this subject and of lay ing the foundation of a plan of legislation and of constitutional 240 THE LIFE OF SAMUEL J. TILDEN. amendment I recommend the appointment of a commission who shall report to the next Legislature the forms of such laws or consti tutional amendments as are required. If you do not think it advisa ble to constitute such a commission, the revisers of the statutes might be instructed to collate and report upon the condition of the laws relating to the cities in aid of future action by legislation or constitu tional amendment. SAMUEL J. TILDEN. The commission which the Governor recommended was duly authorized and appointed. It embraces some of the leading men of both parties in the State of New York. Its preliminary report indicates that its final work will be of large value not only to the people of the State but of the whole country, for the problems which it seeks to solve en gage the attention of all States. CHAPTER XX. SECOND ANNUAL MESSAGE. 1876. ATTENTION has already been directed to the fact that both branches of the New York Legislature in 1876 were under the control of the Republicans, and that many leading repre sentatives of the majority were not at all inclined to treat him in a friendly spirit. His annual message was looked for with even more interest than in the preceding year. It treats largely of national questions, and, in dealing with affairs in the State of New York, it conveys much information of gen eral interest. It was communicated to the Legislature on January 4th, and is herewith appended : STATE OF NEW YORK, EXECUTIVE CHAMBER, ) ALBANY, January 4, 1876. j To the Legislature : The annual meeting of the Legislative Assemblies, at the beginning of the new year, finds the people of this Commonwealth in the enjoy ment of blessings which ought to fill us with reverent thankfulness to Him from whom cometh every good and perfect gift. Whatever the earth could yield to the labor of man, under the fructifying and genial forces of Nature, we have garnered. Health, peace, and do mestic tranquillity have been ours. Capacities to produce in. largest abundance and with least sacrifice, or to acquire by exchange through the best natural and artificial machinery of transport and travel, all things which minister to material well-being, to the prosperity and wealth of a State, and to the comfort and felicity of its individual members, have been and are subject to our use. It was early discovered that New York possessed within her ter ritory the natural passes of military operations, which, in the wars for colonial existence and for national independence, cross-tracked 11 243 THE LIFE OF SAMUEL J. TILDEN. our soil with fire and blood. Our territory was also found, on the later development of the national growth, to occupy the natural thor oughfares of -travel and traffic. It touches the ocean with a harbor ever open, accessible, and safe, close by whose gates the ocean-cur rents compel to pass nearly all transatlantic navigation to and from this country. It connects that harbor and the tranquil Hudson on the north with Lake Champlain and the Canadas ; and on the west, by a level crossing the bases of the mountain-ranges that traverse the continent, with Lake Erie and its chain of great inland seas, bordered by rising commonwealths, which are the marvels of modern times. We are, with our fellow-citizens of the other States, joint inher itors of a system of government the selected product of the oldest existing civilization formed according to the best ideals evolved from human experience, but freed from the overgrowth of habits and interests elsewhere incident to such experience ; and planted in the virgin soil of an unoccupied continent, abounding in all the gifts of Nature. Our population, by the census just taken, is near four and three-quarter millions. Our annual product of agriculture is still greater than that of any of our young rivals, whom we contemplate with admiring pride as in part the creations of our policy and the swarming homes of our own children. Our domestic manufactures are larger than those of any other State. Our foreign commerce is once and a half that of all the rest of the Union. Common-schools, in which are taught a million of youths, and seminaries of higher learning, are training our successors to improve on whatever they can inherit from the present generation. Institu tions of charity dispense everywhere their benefactions ; and the sur face of our whole domain is dotted thickly by edifices whose spires point to heaven. If, on this fair picture, there are spots that indicate a recent prevalence of private waste or folly, or that disclose evils or wrongs by government, resulting in much temporary distress, let us remem ber with humility that we have been in part the authors of what we deplore, or, at least, consenting witnesses ; and let us be grateful that we can reform what is amiss ; and that, to our hands, under God, is committed our own future. DEBTS OF THE STATE. The nominal amount of the debts of the State, as they appear on the books of the Comptroller, without deducting the sinking-funds SECOND ANNUAL MESSAGE. 243 applicable to their payment on the 30th of September, 1875, the close of the last fiscal year, was $28,328,686.40, classified as follows : General fund $3,119,526 40 Contingent 68,000 00 Canal 10,086,66000 Bounty 15,054,500 00 Total $28,328,686 40 THE SINKING-FUNDS. The amount of those debts, on the 30th of September, 1875, after deducting the assets in the sinking-funds at that time applicable to their payment, is exhibited by the following statement, furnished by the Comptroller : DEBT. SINKING-FUND. BALANCE. September 30, 18T5. September 30, 1ST5. General fund.... .$3,119,526 40 $3,029,50570 $89,92070 Contingent 68,000 00 36,677 64 31,322 36 Canal 10,086,66000 1,448,34551 8,638,31459 Bounty 15,054,50000 1 9,066,753 29 5,987,74671 Totals ; . $28,328,686 40- $13,581,382 14 $14,747,304 26 The actual reduction, during the year, of the debts by cancellation of matured stocks, and by the purchase of $858,000 of the bounty loan for the sinking-fund, is $1,870,770. The diminution, during the year, of the debt, after deducting the assets of the sinking-fund, is $2 ,744,505.06. THE BOUNTY DEBT. But even this exhibit does not completely show the situation of the sinking-funds as we are to deal with them in the legislation of your present session. The appropriations made at the last session be came operative on the 1st of October, 1875. The taxies levied for the fiscal year, beginning on that day, are in process of collection. The appropriation for the bounty debt sinking-fund was $4,260,- 000. If that sum be deducted from the balance of $5,987,746.71, as shown in the table for the 30th September, 1875, there would remain but $1,727,746.71 to be provided for by your legislation. 1 Deducting interest accrued to October 1, 1875, payable January 1, 1876. 244 . THE LIFE OF SAMUEL J. TILDEN. The near approach of the extinction of the bounty debt suggests a retrospect. If it had been a necessary condition to a restored Union, our people would not count its cost. But it was essentially an after-war adjustment, and, if the criticism of the Comptroller, in his report of 1875, be just, that though created " nominally to pay boun ties to the volunteer soldiers, who enlisted in the service of the United States during the rebellion, but only an inconsiderable part of this sum is supposed to have reached the soldiers, who were actually engaged in the contest," the experience would be chiefly useful in il lustrating the magnificent costliness of improvident debt. The appro priation for it in the last ten years amounts to $39,983,862.97, and interest .would swell the present cost, to at least $50,000,000. When the appropriation of the present year shall be added, the people of this State may be congratulated on its extinction. CANAL DEBT. The appropriation at the last session, for that portion of the canal debt known as the floating canal debt, was $266,000, which will complete its payment and leave a small surplus in the sinking-fund. On the other hand, the sinking-fund for the canal debt proper will fail to derive from the revenues of the canals the whole amount of the installment required, and a deficiency of $625,610.70 will have to be supplied. WHOLE AMOUNT OF DEBTS. The application of the sums appropriated from taxes, now in process of collection, would reduce the State debts to about ten and one-quarter millions of dollars, exclusive of accruing interest. Another observation ought to be made in respect to the sinking- funds. Nearly $1,200,000 of the assets consist of premiums on its. stocks at cost or at present market rates. It is clear that the operations of the sinking-funds should be re vised. The best investment, certainly the safest, for a State as for an individual, is in the payment of its own debts,- if that be possible on reasonable terms. Individuals seldom find easy credit anything but a snare ; States never. A large mass of cash on hand, even if in sinking-funds, tempts to improvident expenditure and to illegitimate use. CONSTITUTIONAL EESTEICTIONS ON PUBLIC DEBTS. Thirty years ago, in June, the convention sat which formed our present constitution. It was called into being chiefly to impose re- SECOND ANNUAL MESSAGE. . 45 straints on the power of the government of this State to contract debts. The purpose of the people to establish these guards against their agents was the result of years of animated discussion. The restraints were carefully devised. They have been useful, and, in the main, effectual. In 1846 our State debts were nearly $24,000,000. In 1876 they will be reduced to $10,250,000. The convention considered plans for applying such restrictions to all municipal bodies and local governing officials. They did not feel able, in the period of their session, to mature satisfactory provisions. They devolved the duty on the Legislature, commanding its per formance. Their injunction has been unexecuted, and in 1876 the city of New York has a debt of $122,000,000, after deducting its sinking-funds, against a debt of less than $14,000,000 in 1846. The other cities of the State owe $60,000,000, and many counties and towns are also largely burdened. Sole surviving member of the committee which prepared the constitutional restrictions on the creation of State debts, I might be permitted, in honor of the illustrious dead, to trace the moral our experience has since proved of the utility of their work; but I have recounted the results to show that the policy was then, and is now, absolutely necessary to the safety of the people in all State and local governments. TAXES FOE STATE PURPOSES IN 1874. The taxes levied by the Legislature of 1874 were 7J mills on a valuation of $2,169,307,873. Their produce, when all realized, is $15,727,482.08. IN 1875. The taxes levied by the Legislature of 1875 were 6 mills. They were computed in the Comptroller s office and in the legislative committees on the valuation of the previous year. On that basis their produce would have been $13,015,847.24. THE SEDUCTION. The reduction would have been $2,711,634.84. But the valua tion was increased to $2,367,780,102. The produce of a six-mills tax on that amount is $14,206,680.61. The increase of the valuation gives an excess over the estimated amount of $1,190,833.37. The reduction actually effected is $1,520,801.47. APPEOPEIATIONS OF 1875. A reduction of taxes, without reduction in appropriations, would 246 THE LIFE OF SAMUEL J. TILDEN. but create a deficiency and a floating debt. These would have to be paid by a subsequent increase of taxes. The appropriation bills were framed to correspond with the lower valuation, and much effort was made to keep down the appropriations. The result is shown in the following table : APPEOPEIATIONS AND TAXES OF 1875 COMPAEED. i Appropriations of 1875. Tax computed on Valuation of 1874. Tax computed on Valuation of 1875. EXCESS. Schools 11 $0712000 00 $2 711 634 84 $2 950 7 ?5 is $ 7 4S090 20 Bounty debt 9, 4.260,000 00 4.338 615 75 4 735 560 20 396944 45 Capitol Canal floating debt Canal awards ! 1,000,000 00 266,000 00 422 766 90 1,084,653 94 271,163 48 433 861 57 1,183,890 05 295,972 51 473 556 99,236 11 24,809 03 30 694 45 General purposes Deficiency and asylums. . i| Hi 2,986,825 00 1,525,213 53 2.982,71)8 83 1,193,119 33 3,255,697 64 1,302,279 06 272,899 31 109,159 73 Total $13,172,805 43 $13,015,847 24 $14,206,680 61 $1,190,833 37 Excess of appropriations over tax, computed on valuation of 1874 $156,958 19 Excess of tax, computed on the valuation of 1875, over tax computed on valu ation of 1874 $1,190,833 37 Excess of tax, computed on the valuation of 1875, over appropriations of 1875. $1,033,875 18 The reduction in the appropriations of 1875, below the taxes of 1874 counting, at its true construction, one item about which there may be some doubt is $2,554,677.05. This leaves the sum of $1,033,875.18 applicable to the reduction of taxes for the coming fiscal year. REDUCTION OF APPROPRIATIONS FROM CANAL REVENUES OE FUNDS. The appropriations for ordinary expenses and repairs of the canals made at the last session for the fiscal year beginning October 1, 18-75, were $1,109,150, and for the current fiscal year a special contingent provision of $150,000, making $1,259,150. The like appropriations made at the session of 1874 were $1,424,510, and a provision for the then current year for deficiencies of $250,000. The reduction in 1875, as compared with 1874, is $415,360. The canal reappropriation bill in 1874 reappropriated $917,319.63 ; that of 1875 reappropriated $340,079.19. The diminution is $577,- 240.44. The amount raised by former taxes reclaimed into the Treasury, by striking out items in the reappropriation bill of 1875, is $67,- 765.69. SECOND ANNUAL MESSAGE. 247 ITEMS OF EEDFCTIOX OF TAXES. The objects in respect to which a reduction of taxes was effected, were : 18T4. 1875. REDUCTION. Extraordinary canal-repairs Asylums and reformatory $1,898,144 39 813,490 45 None. $479,800 00 $1,898,144 39 333,690 45 General purposes 4 189475 84 3,696 117* 66 493 358 18 Total $2,725,193 02 1. In respect to the first item, the memorandum assigning reasons for withholding the Executive sanction from the bill making appro priations for extraordinary repairs to the canals, contains the follow ing observations : "The budget for extraordinary repairs, as originally prepared, proposed- an expenditure of $1,400,000. In the ordinary course of things, the additions, which would have been made to it during its passage through the two Houses, by the friends of local objects able to influence those bodies, would probably have swollen it to as great a magnitude as the bill of last year for the same purpose, which amounted in tax to nearly $1,900,000. "It was in this condition of things, when the routine, which had become so firmly established, was likely to_ bring for my action bills which could not be totally rejected, and perhaps could not be effect ually altered, and which would practically continue the existing sys tems of canal expenditure, against which I had objected in my annual message and invoked retrenchment and reform, that I felt it my duty to enter upon the investigation which resulted in the special message of March 19, 1875. " The discussion which ensued, generated a spirit in the legislative bodies, and among the people, that triumphed over and broke up the routine, hitherto dominating, and which, like an enchanted ship, moving onward in its course without a crew, was drifting us into a repetition of all improvidences, abuses, and frauds, so long infesting this department of the public administration. " The results of this discussion will be found in a reduction of the appropriations for the expenses of collection, superintendence, and ordinary repairs, and in the extinction of expenditures for extraordi nary repairs." 2. The reduction in the second item was the result of a policy adopted by the finance committees of the two Houses, with my con currence, of confining the appropriations to such sums as would make 248 THE LIFE OF SAMUEL J. TILDEN. available and bring into use the portions most nearly approaching completion of the asylums and reformatory, now in the course of con struction. The appropriations allowed to pass conform, in the main, to that plan. 3. The memorandum assigning reasons for withholding the Exec utive sanction from certain items of the supply bill, expressed the be lief that "with the reductions made in the legislative bodies, and by the refusal of the Executive sanction to items -and bills passed by the Legislature, the Expenditures and appropriations ought not to exceed the taxes levied, and the reduction of taxes will be a clear saving to the people." It added that " the failure of sundry items and bills to receive the Executive sanction will reduce the appropriations as fol lows." And it enumerates such items to be paid by taxes amount ing to $332,169 And items stricken out which reclaim cash to the Treasury ; 67,7(55 $399,934 And items to be paid out of canal revenue $365,940 The failure to keep the appropriations down to the taxes levied, on former occasions, has led to deficiencies in the Treasury and float ing debts which are forbidden by the constitution, and to violations of the sinking-funds. We cannot too vigilantly guard against a re currence of these evils, or insist too inflexibly that no appropriation shall be made until the means of paying it shall have been provided. REDUCTION OF STATE TAXES FOE 1874 TO ONE-HALF THE TAXES OF 1876. The taxes for State purposes in 1874 were 7 mills on a valuation of $2,169,307,873, producing $15,727,482 08 The taxes for State purposes in 1876, if reduced to 3-$$fr mills on the valuation of 1874, or 3-ffifo mills on the valuation of 1875, which is $2,367,780,102, would yield $7,863,741 04 After a careful consideration of the elements of the question, I have arrived at the conclusion that a reduction, substantially of this extent, can be effected without detriment to the public interests, if there exist no deficiencies yet undiscovered in the public accounts, and if no extraordinary necessity for new appropriations shall arise. It may be proper to indicate some of the chief particulars in which this reduction can be made. SECOND ANNUAL MESSAGE. 249 1. Payments on debts of the State : Appropria tions in 18T4. Necessary in 1S76. For bounty debt $4,260,000 00 $1,727,746 00 For canal debt 198,888 00 625,610 70 $,458,888 00 $2,353,356 70 Reduction $2,105,531 30 2. Canal expenditures : 18T4. 18T6. For extraordinary repairs $1,898,144 39 None. For awards. 474,53610 $172,68049 $2,372,680 49 Reduction which, as to canal awards, is estimated $2,200,000 00 3. Reduction by means of surplus of taxes in 1875 $1,033,875 18 4. The taxes provided for general purposes in 1875 were less than those of 1874 by $493,358 18 The excess of appropriations over taxes computed on the old valuation was .... 156,958 19 Balance $336,399 99 Counting on the same appropriation this year, there will be a reduction of $336,399 99 5. The tax for new asylums and reformatory in 1874 was .$813,490 45 The appropriation for 1875 was 479,800 00 Balance $333,690 45 If the same appropriations were made in 1876 as in 1874, the reduction would be $333,690 45 The .reductions effected in these it*ms would be $6,009,496 92 In order to effect the diminution of taxes one-half, there would remain to be effected out of. the other appropri ations a further. reduction of $1,854,244 12 The other taxes in 1875, as appropriated, were : For new Capitol $1,000,000 00 For asylums and reformatory 479,800 00 Remainder of taxes appropriated for general purposes, 1874 3,696,117 66 Taxes appropriated for schools, 1874 ....... 2,660,000 00 Total $7,835,917 66 A quarter of that would be $1,958,979 41 The balance of the reduction proposed is $1,854,244 12 #50 THE LIFE OF SAMUEL J. TILDEN. Three-quarters of the reduction contemplated will have been effected out of half the taxes in the items mentioned. There would seem to be no difficulty out of the remaining half of the taxes to make the remaining quarter of the proposed reduction. The subject will be further discussed when the principal objects of the expendi tures are separately considered. THE PERMANENT EESULT. It is not intended to insist on positive exactness of results. In the exigencies of a great State, unforeseen necessities may arise. But, in private business, and in the administration of those great cor porate bodies which are the growth of modern times, and some of which receive and disburse larger sums than the Treasury of the State, it is found to be wise and even necessary to work up to a systematic plan. The State ought to do the same. It is one of the evils of unsystematic legislation and administration that results are never certain ; that expenditures exceed appropriations, and appro priations exceed taxes. A floating debt is thus created by some sub ordinate officer or authority, which the constitution expressly pro hibits the law-making powers of the government from -creating, except to the extent of $1,000,000. But there seems to be no reason to doubt that, on the scale of our present population and our present policy, the remission of taxes may be permanent. In 1877 the million and three-quarters required this year for the bounty debt will be unnecessary. It is possible, if the canals are well managed, that the demand from them on the Treasury may be somewhat reduced. .The State-prisons, the quarantine, and the salt works, all afford scope for retrenchments. They now share the fate of all other business and speculations which the State undertakes. A decay of income and a growth of expenditures indicate the incompe tence of the State in its sleepy indifference to compete with the ever- vigilant and earnest activity of private interests. The deficiency in the State-prisons for the year is nearly five hundred and fifty thou sand dollars, and of the quarantine about sixty-two thousand dollars, . making $612,000. This sum and the last installment of the bounty debt, amounting to a million and three-quarters, which is a charge on this year, and the deficiency in the canal sinking-fund, amount in the aggregate to $2,960,000. The result, expressed in round numbers, is that, after you have SECOND ANNUAL MESSAGE. 251 reduced the taxes for State purposes from sixteen millions to eight millions, three of the eight millions remaining are or ought to be for exceptional expenditures. That amount, therefore, ought to form a fund adequate, after this year, to meet the exceptional expenditures of the State for improving the main trunks of the canals, and finish ing all public buildings that ought to be finished, and for an ultimate further remission of taxes. I have made this explicit exposition of the subject, at the opening of your session, in order that in all the formative stages of legislation involving expenditures, appropriations, and taxation, the considera tions suggested may be present to your minds. The amendment to the constitution, first brought into operation at the last session, im posing on the Governor the obligation to revise every item of appro priation, works a change in official practice amounting to a revolu tion. Hitherto, as the appropriations were embraced in bills that had to be accepted or rejected, as a whole, the items have been, in effect, withdrawn from the action of the Governor. The responsi bility now devolved on him is very laborious and difficult. It tends, perhaps, to work some change in the customary relations of the de partments. In ordinary legislation, it is stretching the function of the executive veto too far, to apply it to every case in which the Governor, if a member of the Senate or Assembly, would vote against a bill. There seems to be a disposition to hold the Executive to the extreme of accountability in respect to appropriations. This ten dency may be carried so far as to disturb the constitutional equilib rium of the executive and legislative forces. Not desiring to am plify my official powers, nor disposed to shrink from any just re sponsibility, the occasion seems fit to invite a frank understanding, to avow my own wish for, and to seek from you, a cordial cooperation on this subject, for the good of our common constituents. I have endeavored to narrate the financial condition, prospects, and possi bilities of the State in plain language, divested of the technical forms of complicated accounts, which render financial statements capable of being analyzed only by experts, and incapable of being under stood by anybody, without explanations which they do not contain. POLICY OF THE STATE AS TO THE EEIE CANAL. In my annual message of last year, I entered into a full discus sion of the policy of the State in respect to the construction, owner ship, management, and improvement of the Erie CanaL 252 THE LIFE OF SAMUEL J. TILDEN. In my special message of March 19, 1875,.! opened a discussion as to the improvidence, waste, and corruption which have infested the administration of the canal system. Inviting your attention to those documents, I confine myself on this occasion to a brief summary of the policy of the State as it may be deemed now to be settled : . 1. Not denying the general unfitness of government to construct, own, or manage the works which offer the means of transportation, the State of New York saw an exception in the situation and in the nature of the canals which are trunk connections between the Hud son Kiver and the great inland seas on the north and west. Con necting vast navigable public waters, they assume" something of a public character. They are a link of 350 miles in a system which, on the one hand by 1,500 miles of the waters of the great lakes, and on the other hand by 3,150 miles of the waters of the Hudson River and the Atlantic Ocean, connects the crowded populations of Europe with the fertile prairies of the Northwest, covered with their net work of tributary railways. 2. The Erie Canal remains an important and valuable instrument of transport, not only by its direct uses, but by,its regulating power in competition with the trunk railways between the East and the West. 3. The Erie Canal has a capacity to accommodate an aggregate tonnage at least twice as large as has ever offered. It is capable of being made an instrument of the cheapest transportation per ton, per mile, which artificial navigation, in existing geographical and physical conditions, can attain ; not by changing its essential char acter, but by perfecting it and giving it the highest efficiency. 4. The policy upon which the State appears to have decided, and that which I had the honor to advocate in the Constitutional Con ventions of 1846 and 1867, and which is set forth in my messages of the last year, is to keep these great public works as a trust .for the million, not seeking to make revenue or profit to the sovereign out of the right of way. The State originally undertook the construction and administra- tion of the public works in order to secure a facile and cheap trans portation, to which private enterprise was then and long afterward inadequate. It early opened to free competition every mode of transit, even in rivalry to its own works, for the interchange of the agricultural SECOND ANNUAL MESSAGE. 253 products of the "West and of the manufactures and merchandise of the East. It has not exacted from the trust a full return of its advances ; but in expenditures in excess of the revenues and defrayed by taxes, and in remission of tolls, it has made large sacrifices to cheapen the cost of transportation. It has not sought to limit the advantages of its policy to its own citizens ; nor has it paused because the prices (even for our own con sumption) of exported cereals and other agricultural products are fixed by foreign markets, so that the benefits of a reduced cost of conveying them to the seaboard accrue chiefly to the Western pro ducers. SITUATION AT THE LAST SESSION". In the progress of the last session it became obvious that the re trenchment in the ordinary expenses of the canals, and in the out lays for new work recommended in the message, were not likely to be in any degree realized. The appropriations for ordinary repairs, as passed by the Assembly and by the Canal Committee, were nearly equal to those of the previous year. The appropriations for new work, as called for by the budget submitted by the Canal Commis sioners to the committees of the Legislature, were at least as large as the similar estimates of the year before. In the mean time the canal revenues for the months of September and October, which are in the then current fiscal year, were falling off one-quarter of their former amounts ; and the forwarders, boat men, and others engaged in transportation, were appealing for a re duction in the tolls, in opder to enable them to continue their busi ness. On an investigation, induced by this emergency, it was found that in the preceding five years the State had levied taxes of between eleven and twelve million dollars for extraordinary repairs besides deficiencies in the sinking-fund, thereby imposing a burden of almost three millions a year upon the tax -payers. And upon inquiry as to how these vast sums had been expended, it appeared that much had been for objects of no real utility, that many of the contracts had been obtained by sham biddings in eva sion of the law, and there was reason for suspicion as to the dura bility and value of the work. 254 THE LIFE OF SAMUEL J. TILDEN. EEFOEM. In this condition of things, I proposed a reconciliation between the discontented tax-payers and the distressed transporters by a thorough reform in the service and the system, which should remit taxes, reduce tolls, and increase the efficiency of the canals. INVESTIGATING COMMISSION. The first step was to obtain the information necessary to enable remedies to be devised and wisely applied. The commission ap pointed under the joint resolution and statute, consisting of Messrs. John Bigelow, Daniel Magone, Jr., Alexander E. Orr, and John D. Van Buren, Jr., immediately after their organization made such per sonal inspection of the most important parts of the canals as was possible before the water was let in for navigation ; and after that was done they proceeded to investigate many of the contracts for work on the canals and the transactions connected with them. I shall not outrun the public sense of the great and onerous ser vice which these gentlemen have given to the State when I say that they have executed the trust reposed in them with unswerving and impartial fidelity, and with distinguished intelligence and ability. The frauds are not the simple case of embezzlement of public money, or a cheat in the payment of taxes, but are to be traced through the complicated work of construction, and are sheltered by the complicity or connivance of officials whose duty it is to protect the State. The truth has to be discovered and the proof obtained from unwilling and sometimes unscrupulous witnesses. The primary object is to reform the system and establish every possible security against a recurrence of the evils. While security for the future is of transcendent importance, indemnity for the past is to be sought. Civil and criminal redress is to be enforced. If it is a matter of toil and difficulty to make the investigations effectual, it is infinitely more so to conduct the actions in the courts to their conclusion, in cases so numerous and complicated. It will be necessary for you to make a special appropriation for aid to the Attorney-General. INCOME AND EXPENSES OF CANALS. The income and expenses of the canals for the fiscal year ending September 30, 1875, are shown by the following table : SECOND ANNUAL MESSAGE. 255 ii rl ill l^| Extraordinary Repairs and New Work. Tf o o 05 co eo co <N o o t- o o OOiOt T-*IO OO5CST-tOlQ OsOOO^ oocot- Wl 05 t 1 co i- o o T- I O < oo O f-C3 55 -^ "iO~co "r-rs<ft^ cf ; !4i: : : iilfS 1 A< illiiiilll 256 THE LIFE OP SAMUEL J. TILDEN. EEAL INCOME. It will be seen that the income is stated at $1,902,990.04, and the explanation is made at the Auditor s office that, as the receipts are a month later than the earnings, the computation includes the receipts of September, 1874, and excludes those of September, 1875. As the former month yielded $166,341.10 more than the latter, except for this mode of computation the result would be $1,736,651. The esti mate in my special message of March 19th, founded on the data there given, was $1,715,168. The calendar year 1875 gives only $1,584,018. COMPARATIVE STATEMENT, 1874 AND 1875. The following is a comparative statement of the revenues and expenses for the fiscal years 1874 and 1875, furnished at the Audi tor s office : Statement showing the Aggregate Receipts and Payments on Account of the Ordinary Expenses of the Canals for the last Two Years. 1874. 1875, Receipts from tolls, etc $2,947,972 91 $1,925,995 63 Payments to superintendents and repair con tractors $1,1 76,021 46 $985,105 10 Payments by Canal Commissioners for repairs 121,694 91 279,616 69 Payments to collectors and their assistants. . 84,83344 75,85741 Payments to weighmasters and their assistants 12,846 39 12,118 09 Refunding tolls, salaries of officers, etc 74,070 63 61,759 65" Reserve balance of appropriation for con creting the sixteen locks and retrunking the Upper and Lower Mohawk Aqueducts 52,859 01 Total expenses for the year. $1,469,466 83 $1,467,315 95 Net receipts 1,478,506 08 458,679 68 This statement shows a falling off in the toll receipts of the last fiscal year, as compared with those of 1874, of $1,021,977.28, de crease in payments of $2,150.88, and a loss in net receipts of $1,019,- 826.40 the net revenue being $625,610.70 short of the requirements of the sinking-fund under Art. VII., section 3, of the constitution ; the amount required being as follows : Interest in coin. . . . . . $634,290 38 For sinking-fund . . . . t . 450,000 00 $1,084,290 38 Actual surplus 458,679 68 Deficiency $625,610 70 SECOND ANNUAL MESSAGE. 57 EXPLANATOEY COMMENT. It is to be noted that the expenses during all the present year, ex cept the last two months of navigation that is, up to September 30, 1875 were under the appropriations of 1874. The reductions effect ed, at the last session do not begin to operate until October 1, 1875. The diminution in business caused by the bad condition of our domestic trade, the growing diversion by the completion of railways, and the reduction of tolls, all operated from the beginning of navi gation, or five months out of the seven of the season earlier than the reduction of expenses. The falling off of income in the last two months of 1875, as com pared with the last two months of 1874, is less than the reduction in ordinary expenses and repairs for the fiscal year commencing October 1, 1875. FUTUKE MEASUEES. In this state of things it is obvious that our first measure should . be to ascertain completely, and without unnecessary delay, the finan cial condition of the canals : the state of the contracts yet outstand ing for extraordinary work, in order to determine what ought to be stopped or abandoned and what ought to be continued, and the means applicable to any expenditure they may require. A second measure is the careful and thorough investigation of or dinary expenses and repairs, for the purpose of keeping them down to the lowest point consistent with the efficiency of the canals. A third measure relates to the disposition of such laterals as are not necessary as feeders. It will be recollected that at the last session, in view of the complicated questions incident to this subject, requir ing legal engineering and business skill, and much devotion of time and attention, I recommended its reference to a special commission. The Legislature, however, preferred to charge the Canal Commission ers and State Engineer and Surveyor with the additional duty. I am not advised what report they will make on the subject. A fourth measure is a radical change in the system of administra tion. The present machinery is chaotic, and, except with something of the unity which existed in practice in the Canal Board under the old constitution, is incapable of acting with efficiency or economy. The abuses, perversions of law and morals, improvidence and waste which cling around it, are the growth of years. When a man of average well-meaning and average ability comes singly into one of these administrative offices, the graft develops, not its own nature, 258 THE LIFE OF SAMUEL J. TILDEN. but the nature of the parent stem. It is difficult to carry out reform by instruments that are incurably averse to reform ; whose indo lence, comfort, associations, habits, assistants, and advisers, are all naturally opposed to what they are expected to do. Every step of progress is not only through an enemy s country, but beset by unex pected betrayals. A constitutional amendment, changing the system of administer ing the canals, was unanimously passed by both Houses at the last session. Your attention is respectfully called to the importance of an early consideration of the subject. A fifth measure is the continuance for the present year of the reduction in the tolls made for last year. A sixth measure is to subject all the work called extraordinary repairs to a systematic and thorough scrutiny, and discard everything that is not clearly and certainly necessary. When the debris of the old rotten system shall be cleared away, there is a work of real util ity and small cost, which will claim an early attention, and for which the people would be willing to provide the means. On this topic I repeat the remarks contained in the special Canal Message of March 19, 1875 : " In my judgment a far more important improvement of the Erie Canal would be effected by a thorough system of ordinary repairs, which should give the water-way its proper and lawful dimensions ; and by progressively deepening it, wherever reasonably practicable, from seven to eight feet. As the object would be merely to enable the submerged section of the boat to move in a larger area of water, so that the displaced fluid could pass the boat in a larger space, it would not be necessary to alter the culverts or other structures, or to carry the walls below the present bottom ; and the benefit would be real ized in each portion of the canal improved, without reference to any other part of the channel which should remain unchanged. In facili tating the movement of the boat, and quickening its speed, it would increase the amount of service rendered in a given time, and would thereby diminish every element of the cost of transportation. It would benefit the boatmen and carriers more, even, than one cent a bushel remission of tolls. It would be of more real utility to naviga tion than five or ten times its cost expended in the average manner of so-called improvements on the public works. But it is too sim ple, too practically useful, to enlist the imagination of projectors who seek the fame of magnificent constructions, and of engineers who build monuments for exhibition to their rivals, or to awaken the rapacity of cormorants who fatten on jobs." I have thus briefly sketched the outline of a policy which is the SECOND ANNUAL MESSAGE. 259 best method to promote cheap transportation, not only so far as the Erie Canal is concerned, but in its general effect upon all methods of transportation. It seems to me that these measures are entitled to the effective support of the forwarders, boatmen, transporters, as well as to that of the tax-payers, and all who desire to rescue our public works from spoliation. THE NEW CAPITOL. The following statement shows the payments for this object from the State Treasury, including purchase of lands, etc., to June 20, 1875 : To September 30, 1863 $51,593 66 " " " 1864 9,45355 " " " 1865 10,86008 " " " 1866 (Congress Hall block). . , . . . 65,250 00 " " 1867 10,00000 " " " 1868 50,00000 " " " 1869 451,21563 " " 1870 1,223,59773 " " " 1871 482,94237 " " " 1872 856,10698 " " " 1873 1,175,60000 " " " 1874 610,27516 From October 1, 1874, to June 20, 1875 1,000,600 00 Total $5,997,495 16 A statement from the clerk of the present commission, which was organized on the 29th of June, 1875, is as follows : Amount paid on account of expenditures prior to January 1, 1875 $263,659 95 Amount expended in construction since June 29th. . . 491,349 95 Estimated liabilities on January 1, 1876 65,542 22 The memorandum attached to the supply bill signed on the 21st of June contains the following observations on THE APPEOPEIATION FOE THE NEW CAPITOL. " Of the million provided for this purpose, more than $200,000 will be consumed in the payment of arrears now existing in the nature of a floating debt, and less than $800,000 will be applicable to new con struction. " It is with reluctance that I assent to this appropriation. Nearly $6,000,000 has already been expended upon this edifice. Although 260 THE LIFE OF SAMUEL J. TILDEN. , the general plan has been determined, the details have not been worked out with such thoroughness and such certainty as to afford any guide as to the amount which will probably be- required for the completion of the building. If it were an original question I should have no hesitation in condemning and discarding a work of such un necessary cost ; but it cannot be now abandoned without losing all that has been thus far expended. In deciding on the wisdom of com pleting it, we are to consider only whether it will be worth the future outlay for its completion. What that cost will be ought to be ascer tained with all the certainty attainable. I doubted whether the work ought not to be suspended until the plans of future construction should be settled, and full assurance . had that the annual expenditure should be made usefully in furtherance of those plans. In the mean time I favored a reduction of this appropriation below the amount adopted by the Legislature." The new commission consists of the Lieutenant-Governor, the Auditor of the Canal Department, and the Attorney-General. The act provides that, before any portion, exceeding $50,000, of the sum appropriated for the construction of the new Capitol should be expended, full details, plans, and specifications of the story of said building containing the legislative halls, should be made and approved by the said commissioners. This requirement of the law was com plied with, and the work of construction was prosecuted through the. summer and autumn. The act further provides that " not more than one-half of the said appropriation shall be expended before full details, plans, and specifi cations of the whole of the remainder of said building shall be made and approved in writing," by the commissioners. This requirement has not, as yet, been complied with, and the work upon the Capitol has been suspended. The plans and specifications have been prepared by the architect, and were submitted to the commissioners on the 15th day of December, 1875, but they have not, as yet, been approved by the commissioners. The determination of all the details of so extensive a building will require much careful consideration. It is the intention of the commissioners, before approving the plans for the. completion of the new Capitol, to ascertain and report to the Legislature the cost of execution; they are now, as I am in formed, engaged in this very necessary preliminary work. IXSANE ASYLUMS AND KEFOKMATOfcY. Four State institutions are in process of construction three asy lums for the insane and a reformatory. It might have been supposed SECOND ANNUAL MESSAGE. 261 that such, an extensive provision for the insane as is contemplated in these three institutions could not become necessary on the instant, and that common prudence would have dictated that one institution should be completed before another was begun. But, unfortunately, not even the sacred influences of charity could save these works from the spirit of legislative log-rolling, or the rapacity of local expendi ture. The policy of beginning everything and finishing nothing has pre vailed. Construction has been on a scale of costly extravagance. At the last session $2,750,000, raised by taxes, had been expended on these four institutions, and about $450,000 raised by taxes and appropriated remained unexpended, and yet no considerable part of these works had been made available. The plan was adopted. at that session of confining the appropria tions for . the year to such sums as would make available and bring into use the portions of the structures most nearly approaching com pletion. The construction of the other portions of those buildings, if they are to be completed according to the present plans, may be deferred until after the extinction of the bounty debt in 1877. The interval will afford an opportunity to revise the whole policy of the State in respect to these institutions, and to reconsider the plans and methods of their construction. The expenditures thus far are as follows : Hudson River Asylum : Total expenditure to December 20, 1875 .$1,337,978 52 Buffalo Asylum : Total expenditure to December 20, 1875 767,351 91 Middletown Asylum : Total expenditure to December 20, 1875 454,099 38 . Elmira "Reformatory : Total expenditure to December 20, 1875 760,117 98 Total ; $3,319,547 79 The cost of completing these buildings is as yet a matter of con jecture ; it probably would exceed what has already been expended. It is quite clear that an outlay of $5,000 per inmate, for the pur pose of providing shelter for the unfortunate objects of public char ity, is unreasonable and extravagant. That would be equal to $25,- 000 for five persons, which compose the average family in this State. 262 THE LIFE OF SAMUEL J. TILDEN. How many families of laborious and thrifty producers can afford to live in a house costing $25,000? In 1865, less than one-sixtieth of the houses of this State were of stone, and their value was about $10,000 each, or $2,000 for each inmate. Those of brick, which are about one-eighth of the whole number, were valued at $6,000, or $1,200 for each inmate. Those of wood, which are three-fourths of the whole number, were valued at $1,100, or $220 for each inmate. I deny that there is any sound public policy in erecting palaces for criminals, for paupers, or for the insane. A style of architecture simple, and fitted to the nature of its object, would reconcile artistic taste with justice toward the industrious producers, on whom falls the burden of providing for the unfortunate. Waste in such edifices is not only a . wrong to the tax-payers, but by just so much it con sumes the fund which the State is able to provide for the objects of its charity. Nor does the mischief stop with the completion of costly dwell ings. The State still has to provide annually for the support of their inmates. By an inevitable association of ideas in men s minds, mag nificent homes lead to magnificent current expenditure. The pride of officers and managers, and of local admirers, and the zeal of benev olence, are freely indulged where they are gratified without expense to those who are swayed by them. It is to be remembered that, after all, the burden of taxation is chiefly not upon accumulated wealth, but upon the current earnings of the million who carry on their productive industries in frugal homes. They ought not to be the only class disfavored by the policy of the State. STATE-PEISONS. The following statement shows the expenditures and earnings of each of the prisons for the year ending September 30, 1875 : Advances from the Treasury. Eeceived from Earnings. Excess of Expenditures. Auburn $208 719 35 $76,935 62 $131,783 73 328,638 13 133,446 25 195,191 88 Sin" Sinsr 341 826 20 158,596 64 183 229 56 Miscellaneous distributed, 144.50 for expenditures not including $28,- transportation of 35,344 50 35,344 50 Total $914 528 18 $368 978 51 $545,549 67 SECOND ANNUAL MESSAGE. 263 The excess of advances from the Treasury over receipts from earnings is as follows: In 1867 it was $366,874 79 In 1868 it was 512,547 74 In 1869 it was 595,77445 In 1870 it was 461,304 99 In 1871 it was 470,309 23 In 1872 it was -. 465,881 84 In 1873 it was; 597,289 06 In 1874 it was , - 588,537 42 In 1875 it was 545,549 67 The number of convicts in each of the prisons, September 30, 1873, 1874, and 1875, was as follows : 1873. 18T4. 1875. Auburn .... 1 104 1 202 1 312 Clinton : 567 552 553 Sine Sin- 1 354 1 306 1 616 Total 3 025 3 060 3 481 Although the burden imposed upon the tax-payers of the State by these institutions has been slightly decreased within the last three years, I think the people ought not to be satisfied with the present exhibit. Under a proper system, and with proper management, the prisons of the State, filled for the most part with able-bodied men, ought to be self-supporting, if, indeed, they ought not to produce a consider able revenue to the State. Other institutions of a like character, and possessing in some respects less advantages, impose no burden upon the people, and one conspicuous institution in this city affords a sur plus to. the county. I recommend that a thorough inquiry be made with respect to the management of the State-prisons in such manner as the Legislature may think best, to the end that such reforms, both in legislation and in administration, may be accomplished as are necessary to produce the desired result. I also recommend to your adoption the resolution passed at the last -session, and which requires your concurrence, for submitting to 264 THE LIFE OF SAMUEL J. TILDEX. the people the constitutional amendment therein contained relating to the State-prisons. SALT SrRINGS. The quantity of salt, from the Onondaga Salt-Springs, inspected during the last fiscal year was 6,589,676 bushels, less by 4,515 bush els than the production of the preceding year. The net revenue from this source was $5,148.32, showing a falling off as compared with the preceding year of $5,193.35. It is represented by the Superintendent that a considerable outlay will soon.be necessary for repairing and renewing the machinery con nected with the works, and for completing the sinking of new wells. I recommend that an investigation be had with respect to the ne cessity of such expenditure, the best method of operating the works, and the general management of the concern. QUARANTINE. The payments from the State Treasury for this object during the fiscal year ending September 30, 1875, were : Advances to commissioners for maintenance of Quarantine es tablishment $48,000 00 Salaries of commissioners. . . . 7,500 00 Commissioners appointed to confer with the authorities of New Jersey on jurisdiction 3,000 00 Pay of police ; . 3,953 18 $62,453 18 It seems to me that this establishment ought to be made self- supporting. To that end, I commend the subject to your considera tion. THE NATIONAL GUAKD. The National Guard of this State consists of eight -divisions, eighteen brigades, one regiment, and ten separate troops of cavalry, eleven separate battalions of artillery, and twenty-five regiments, twelve battalions, and seven separate companies of artillery. They comprise 1,505 commissioned officers- and 17,908 non-commissioned officers, musicians, and privates. The aggregate force is 19,413. The condition of the guard, as respects organization and discipline, is eminently satisfactory. The cost of armories and the charge for the rent. of such as were SECOND ANNUAL MESSAGE. 265 occupied under leases in the city of New York had become a serious burden and a gross abuse. Contracts marked with extravagance and improvidence, with favoritism and corruption, had been made. They had become the subject of litigation, and were generally held by the courts to be illegal and void. The rentals claimed are about $275,000 per annum. The claims for arrears of rent amount to about $700,000 ; and the rent to accrue, if the leases should be retained until their terms expire, would be an additional $1,000,000. The fair rent of an armory, where property is so valuable as in the city of New York, is so considerable that regiments which are reduced to mere skeletons cannot be kept in existence without in justice to the tax- payers of the city. For this reason six of the six teen regiments and battalions of the first division, which consists of the city of New York, have been disbanded. As the city owns four armories, there will be but six instead of twelve regiments to be provided for. It is hoped that the charge on the city treasury can be reduced to less than a quarter of its former amount. This neces sary measure could not be executed without inflicting some wounds in particular cases ; and I share the sense of sacrifice of personal associations and patriotic memories. COLLEGES AJSTD ACADEMIES HIGHER EDUCATION. The reports to the Eegents of the University from the colleges of the State show a gratifying increase of numbers both of students and graduates. Many of the colleges have received from private liberality additions to their endowments which place them in a condition of comparative independence. The character of instruction is elevated and strengthened, the courses are more comprehensive and better adapted to the demands of the age. The attendance on the academies and high-schools does not much vary from that of the preceding year. These institutions, occupying an intermediate place between the colleges and the common schools, provide for the wants of those who desire more than the latter can furnish, and who are not able to meet the expenses or to give the time required by the courses of the former. The State Library and the State Cabinet of Natural History have received valuable additions. Their condition will be exhibited in the reports of the trustees soon to be presented. 12 266 THE LIFE OF SAMUEL J. TILDEN. COMMON-SCHOOL STATISTICS FOE THE YEAR ENDING SEPTEMBER 30, 1875. Total receipts, including balance on hand September 30, 1874 $12,516,362 96 Total expenditures 11,365,377 79 Amount paid for teachers wages 7,843,231 67 Amount paid for school-houses, repairs, furniture, etc 1,844,347 20 Estimated value of school-houses and sites 36,393,190 00 Number of school-houses 11,787 Number of school-districts, exclusive of cities 11,289 Number of teachers employed for the legal term of school 19,157 Number of teachers employed during any portion of the year 29,977 Number of children attending public schools 1,058,846 Number of persons attending normal schools 6,207 Number of children of school age in private schools 135,093 Number of volumes in school-district libraries , 812,655 Number of persons in the State between the ages of five and twenty-one years 1,579,504 STATE TAXES IN AID OF COMMON SCHOOLS. The following statement shows the amount produced annually by the f mill tax for the support of common schools, as provided by Chapter 180, laws of 1856 : 1858 . . - - 1,053,680 74 1859 ,053,873 04 ,064,473 14 1,081,325 14 1862 ,086,977 96 1,090,841 11 1864 1,125,749 90 1,163,159 76 1866.. 1,148,422 22 The following shows the amounts produced by the 1 mill tax for this object, as provided by section 3, Chapter 406, laws o 1867 : 1 86 7 $2,080,134 65 1868"!.". 2,207,611 42 1 869 2,325,150 96 187o! . . 2,458,751 48 SECOND ANNUAL MESSAGE. 267 1871 $2,565,672 37 1872 2,610,784 31 1873 2,662,032 98 1874 2,711,634 84 1875 2,959,725 13 NOTE. The amount raised "by State tax for the support of common schools, prior to the act of 1856, was $800,000 annually. See section 1, Chapter 180, laws of 1856. THE METHOD OF APPEOPKIATIO2T. A standing appropriation, such as used to exist before 1846, is prohibited by the constitution, which requires a revision of old ap propriations at the expiration of every two years. The system of making formal appropriations in obedience to a standing law is liable to the objection that it practically defeats the policy of this constitutional provision. The Legislature does not, in fact, recon sider each time how much ought to be appropriated to the object, but mechanically conforms to the standing law, which fixes the rate. The assessors become in effect the power that determines the taxes. It cannot be supposed that the real value of property subject to tax ation has increased during the period when nearly a million has been added to this item of them by nominal enlargements of the- valuation. Nor can it be doubted that, in all business, equal services can now be obtained at less prices than in 1867. The appropriation ought to be for a specific sum, and the taxes adjusted to provide that amount. STATE "CEKTIFICATES. An act amendatory (Chapter 567) of the general school law was passed at the close of the last session, and became a law by receiving the Executive signature on the 9th of June, 1875. The fifth section of that act made a material change in the law regulating the granting by the State Superintendent of certificates of qualification to teach. That officer was authorized by section 15 of the general school act, passed May 2, 1864, to grant certificates on the recommenda tion of any school commissioner or on other evidence satisfactory to him." A clause authorizing the State Superintendent to issue, " in his discretion," certificates of qualification to graduates of any seminary of a private corporation, known as the Sisterhood of Grey Nuns, on their filing with him their diplomas, appears in an amendment of the 268 THE LIFE OF SAMUEL J. TILDEK charter, by Chapter 353 of the laws of 1875, which became a law on the 15th of May. This provision did not purport to make a person having such diploma a qualified teacher like a person having a diploma of a State Normal School, but merely vested the State Superintendent with a discretion to grant to such person a cer tificate of qualification. That power the Superintendent had before, and has had for the previous eleven years. The provision had no real effect ; it conferred no new power on the Superintendent ; it added nothing to his existing power ; but it bore the appearance of a special grant of a privilege to one corporation, which may be presumed to have escaped attention, for the bill passed the Assembly once and the Senate twice by the affirmative vote of every member present. But the discretionary power of the Superintendent, under the law of 1864 and under this act, was afterward completely abrogated by the law of the 9th of June. He was prohibited from granting any certificates except on public examination. The law of the 9th of June was later than the Grey Nuns act, and repealed the clause of that act which authorized the Superintendent, in his discretion, to grant certificates to graduates of the seminaries of the Grey Nuns corporation. It went further. It repealed the power which he had under the law of 1864 to do the same thing. If the Grey Nuns corporation derived any special privilege from the act of the 15th of May, that privilege was destroyed by the law of the 9th of June. A uniform rule is now made applicable to all. This result is in accordance with the policy of this State as estab lished by the recent constitutional amendment relating to the public schools, which had been and is to be obeyed and executed in good faith. PAUPERISM. The report .of the State Board of Charities will be presented to the Legislature, and I commend it to your earnest attention. The question, as to the proper mode of providing for the chronic poor, is addressed not only to the conscience and the feelings, but to the reason and the judgment. It is a question not so much of philan thropy as of political economy. The members of the board bring to its discussion great zeal, large experience, and rare intelligence. With out committing myself to the support of all their recommendations, I ask your thoughtful consideration of their suggestions. The act of 1875, providing for the separation of pauper and desti tute children from the adults of the same class, has been put in gen- SECOND ANNUAL MESSAGE. 2G9 eral operation, but years must elapse before its beneficial results will be fully apparent. This legislation has met with warm approval in other States, and will, no doubt, be followed by many of them at an early day. It remains in this State to secure the separation of children convicted of petty offenses from older offenders, while con fined in our penal institutions. The subject of providing work for paupers, especially of the class styled "tramps," is commended to your consideration. Even if their earnings were small, the fact that this class of persons were com pelled to labor in return for their subsistence would, doubtless, less en the number of applicants for admission into our poorhouses, and for outside relief, and would induce many of them to apply them selves to regular employments. I renew the recommendation made in my last annual message, for a thorough revision of the poor-laws. THE STATE CENSUS. The census taken during the last summer makes the population of the State 4,705,208. The utility of the information it collects, aside from the primary object of providing the means for a reappor- tionment of the representation in the Legislature, depends largely upon the promptness with which the compilations are made and furnished to the public. I recommend that provision be made to complete the work as early as the first of next December, and that the requisite appropriation for that purpose be made. MUNICIPAL GOVERNMENT. A commission to consider this important and interesting subject has been appointed under the joint resolution of the last session, and is organized and holding its sittings. The restrictions necessary to arrest the creation of municipal debts, which has become a grave evil, affecting one-half of the people of this State, and calling urgent ly for redress, may well command the attention of the commission and of the Legislature, independently of the complicated questions involved in the structural organization of municipal government and the distribution of its powers. CENTENNIAL EXHIBITION. A State Centennial Board for New York has been appointed, under Chapter 525 of the laws of 1875, to represent this State, in 270 THE LIFE OF SAMUEL J. TILDEtf. cooperation with the Centennial Commission appointed by the Presi dent of the United States, in the preparations for and at the inter national exhibition, to be held at Philadelphia in commemoration of the one hundredth anniversary of the Declaration of Independence. The event not only appeals to the people of the whole United States by the patriotic associations which attend it, but it will be an occa sion of unprecedented interest in the opportunity it affords to all our citizens of a personal inspection of the progress and state of the industrial arts in all the countries of the civilized world. BANKS. Eighty-four banks were doing business under the laws of this State on the first of October last. Eight banks organized and com menced business during the fiscal year ending October 1st. During the same time one bank failed, and three were converted into nation al banks. Circulating notes to the amount of $9,314 were destroyed by the Bank Department, and forty-four banks were credited with lost cir culation during the year to the amount of $246,649, the time for redeeming the same, after the usual legal notice, having expired. The amount of circulation outstanding was, on the first day of Octo ber last, $849,226.50. Of this amount, the sum of $218,528 was secured by deposits of cash, stocks, or stocks and mortgages. The balance, $630,698.50, is not secured, it having been issued by banks chartered previous to the passage of the free banking law. There remain but twenty-three of these banks that have not taken steps to finally redeem their notes. SAVINGS-BANKS. There were one hundred and sixty savings-banks on the first day of July last. Of these five were in process of closing their business. Five have since closed, three by reason of insolvency. The new gen eral law for the regulation of savings-banks does not require them to report in July, as they have formerly done. The aggregate of assets of these institutions, as appeared from informal reports made to the Bank Department for the first of July last, was $336,308,236.43. Their deposits amounted to $316,335,617.82, belonging to 891,992 depositors as represented by the number of open accounts on that date. The increase in deposits during the six months ending July 1st, last, was upward of twelve millions of dollars, and the number of de- SECOND ANNUAL MESSAGE. 271 positors or open accounts increased, during the same time, 19,494. The total increase in deposits during the year 1874 was $18,415,564, and, in the number of depositors, 33,026. The aggregate of assets as shown above, for July last, was not made up in the same manner as that for January 1st, last, therefore such aggregate cannot be used for the purpose of comparison. The estimated amount of such assets, on the first of July last, may, however, be stated at three hundred and forty millions of dollars. KECOMMENDATION AS TO SAVINGS-BANKS. It will be observed that the number of depositors in the savings- banks in this State is larger than the number of electors who have ever voted at an election ; and that the aggregate of their deposits is more than one-eighth of the assessed valuation of all real and per sonal property. In view of the fact that these are the savings of the industrious poor, who are less able to assert and protect their own interests than any other class of holders of such vast amounts of property, it is an especial duty in our legislation to shield them from injustice. The absolute safety of their deposits is an incentive to make savings, which is an important object of public policy. Frequent reports by these institutions should be required. The provisions regulating the character of their investments should be revised with a view to secure greater safety. New guards should be instituted against the tendency of administration to fall into favorit ism toward the officers, sure to prove dangerous to the trust ; and it should be inquired, in view of -the recent and numerous failures, what defects may be shown to exist in the present law, and whether further penalties, in respect to maladministration, can be provided. I commend the subject to your consideration. TEUST, LOAN, AND INDEMNITY COMPANIES. There were eleven trust, loan, and indemnity companies reporting to the Bank Department, July 1st, last, one having closed its business during the year preceding. A new trust company began business September 1, 1875, whose capital is not included in the summary. The aggregate capital of these corporations, paid in, as shown by their reports, was $11,584,475. The total amount of their assets was $69,654,948, and the amount due from them to their depositors was $50,365,569. The estimated amount of assets, held July 1st, by banks, savings- THE LIFE OF SAMUEL J. TILDEN. banks, trust, loan, and indemnity companies, was $520,000,000. The amount due to their depositors was, approximately, $432,000,000 ; and their profits, including surplus fund, may be estimated at $89,- 000,000. INSUEANCE COMPANIES. The number of insurance companies subject to the supervision of the Insurance Department, on the 19th day of -November, 1875, was 281, as follows : New York Joint Stock Fire Insurance Companies 102 New York Mutual Fire Insurance Companies 8 New York Marine Insurance Companies 9 New York Life Insurance Companies 22 New York Plate-Glass Insurance Company 1 Fire Insurance Companies of other States 91 Marine Insurance Companies of other States 1 Life Insurance Companies of other States 25 Casualty Insurance Companies of other States 4 Canadian Fire Insurance Companies 3 Foreign Fire Insurance Companies 11 Foreign Marine Insurance Companies 4 Total 281 The total amount of stocks and mortgages held by the Insurance Department for the protection of policy-holders of fire, life, and casualty insurance companies of this State, and of foreign insurance companies doing business within it, was $11,036,053, as follows : For protection of policy-holders in fire insurance companies of this State $400,000 For protection of policy-holders generally in life insurance com panies of this State 3,790,091 For protection of registered policy-holders exclusively 3,184,542 For protection of casualty policy-holders exclusively 1,000 For protection of plate-glass policy-holders exclusively 50,000 For protection of fire policy-holders in insurance companies of other States 60,000. For protection of fire policy-holders in insurance companies of Canada 643,120 For protection of fire policy-holders in foreign insurance com panies 2,604,300 For protection of life policy-holders in foreign insurance com panies 303,000 Total deposit $11 ,036,053 SECOND ANNUAL MESSAGE. 273 The assets of the life insurance companies of this State amount to nearly two hundred millions of dollars, the amount insured by them to one thousand millions, and their annual receipts to more than sixty millions. The magnitude of these sums, and the duration and fiduciary character of the engagements of these corporations, make it specially important that the interests of the policy-holders should be guarded with jealous care. DEPKESSWN IN BUSINESS. It cannot be doubted that large classes of our people are suffering great inconvenience from the present state of trade and of manu facturing and mechanical industry, and from the decay of numerous enterprises. Few kinds of business have been recently carried on at a profit. Labor finds scanty employment even at reduced wages. Incomes are lessened or fail altogether. Many investments have be come wholly or partially unremunerative. Property is shrinking, losing for the time its circulatory character, and becoming unavaila ble as a resource to pay debts or to raise money. It is not a con vulsion, but a partial paralysis. There is nothing of what is called a pressure for money ; there is no panic ; but a fear to lend except on certain security; and a timidity in borrowing for new undertakings by most persons of prudence or credit. CAUSES. It is to be hoped that, amid these evils, the germs of a better future are springing up, to renew in their origin the elements of indi vidual and social prosperity ; but in the mean time attention is natu rally drawn to the causes of a state of things which inflicts so much distress. Such seasons have recurred at intervals in the experience of this and other countries. They have usually been produced through the destruction of large masses of capital by wars, revolu tions, conflagrations, or failure of crops, or by a temporary mania for bad investments, or by violent reactions of credit. The known facts of our recent business history leave no doubt as to the origin of the state of things we are -now experiencing. WASTE OF NATIONAL CAPITAL BY EXCESSIVE GOVEKNMENTAL CONSUMPTION. Eleven years ago our country emerged from a vast civil conflict, in which its aggregate wealth had been impaired to the extent of probably two thousand millions of dollars by a governmental con- 274 THE LIFE OF SAMUEL J. TILDEN. sumption exceeding the whole net income of the people ; to say noth ing of the destruction of property, industries, and productive capaci ties incident to military operations. Never was it more necessary that peace should bring healing on its wings. To replace the capital destroyed, to restore the elements of future natural growth, should have been the object of our policy. A prompt reduction of the enormous governmental expenditure was the first condition. A renewal of the industries of the great communities of the South, which produce so large a share of our exports and raw material, was of great importance. Energy, skill, and economy in production, and frugality in private consumption, the wise conduct of business, and a judicious application of capital and labor, were essential. These chief elements of private prosperity were depend ent upon public conditions. They were to be promoted by sound government finance, by good methods of revenue, not unduly swell ing the cost of taxes to those who pay them beyond their produce to the Treasury ; by a discreet management of our vast fiscal operations, and of the currency and of the banking system ; by a sober and stable governmental policy, not stimulating to speculative adventures, not inciting miscalculations in business, not enhancing charges for services and risks in commercial transactions. How completely these conditions have been reversed during the eleven years since the war, appears in a retrospect of the actual events of that period. PRESENT SCALE OF GOVERNMENTAL EXPENDITURE. The extravagance of our governmental consumption is illustrated by a comparison of the public expenditures of 1870 five years after the close of the war with those of 1860 and 1850 : TAXES IN" THE UNITED STATES*. 1850 1860 1870 Gold. Gold. Currency. Federal $40,000,000 $60.010,112 $450,000,000 State, county, city, and town 43,000,000 94,186,746 280,591,521 $83,000,000 $154,196,858 $730,591,521 Population 23,191,876 31,443,321 38,558,371 SECOND ANNUAL MESSAGE. TAXES TEE HEAD. 1850, 1860. 1870. Federal $1.72 $1.91 $11.67 Local 1.85 2.99 7.24 $3.57 $4.90 $18.91 AGGEEGATE TAXATION OF ELEVEN YEAES. The aggregate Federal taxation of the eleven years now closing, computed, in currency, from the official statements, is more than $4,500,000,000. The local taxation, assuming the census statement for 1870 as an average, is more than $3,000,000,000. The aggregate taxation exceeds $7,500,000,000. ITS EELATION TO NATIONAL SAVINGS. The daily wants of the masses of mankind, even in the most pro ductive and prosperous countries, press closely upon their daily earn ings. It is only a small portion of their current income which they are able to save and to accumulate. In Great Britain and Ireland, despite the wealth which their peo ple have long been storing up, especially in machinery and moneyed capital ; despite the yearly influx of one hundred and fifty million dollars from interest on investments in other countries, the annual growth of wealth from the savings of all their people is not deemed by the best authorities to exceed six or seven hundred million dol lars. The accumulated wealth of the United States is the result of a shorter period of growth, ancl is less in amount. We have to pay to foreign creditors annually, in coin, more than $100,000,000. We are richer in the natural powers of the soil ; and our labor is, on the whole, more efficient. We earn more, but have less disposition to save, and less of the habit of saving. SUCH CONSUMPTION GEEATLT EXCESSIVE. A governmental consumption in every year, in bad as well as good years, must be considered greatly excessive when it amounts to a share of the national earnings larger than the whole people are able to save in prosperous times for all new investments ; for erect ing dwellings and other buildings ; for improving farms, increasing the stock of live animals and of agricultural implements; for all manufacturing and mechanical constructions and machinery; for all 2 70 THE LIFE OF SAMUEL J. TILDEX. warehouses and stores, and increased supplies of merchandise ; for ships and steamers, and telegraphs, and railroads, and their equip ments ; for all objects which individual and corporate enterprise pro vide for the future, in the progress of a populous and rapidly-growing community. INCIDENTAL EVILS. Such taxation is in itself a monstrous evil ; and its incidents ag gravate its direct injuries. When the exaction from the people was, as in 1860, one-quarter of its present amount per head, even if it were unscientific and unskillful in the levy, the mischief was compara tively inconsiderable. But with the quadruplication of the exaction, the difficulty of obtaining good methods of imposing it is greatly increased, and the mischiefs of bad methods become wellnigh intol erable. When governments take from the people, for official expenditure, nearly all the surplus earnings of individuals, science and skill in the art of taxation become necessary necessary to preserve and enlarge the revenue necessary to gild the infliction to the tax-payers. Our present situation is that we have more than European burdens, as seen in the most costly governments of the richest of modern nations, supporting immense navies and armies and public debts ; and to these burdens we have conjoined an ignorance and incompetency in dealing with them which is peculiarly our own. We have not yet acquired the arts belonging to a system which the founders of American Gov ernment warned us against, and fondly believed would never exist in this country. SACRIFICE CAUSED BY UNSKILLFUL MODES OF TAXATION. The consequence is, that the pecuniary sacrifices of the people are not to be measured by the receipts into the Treasury. They are vastly greater. A tax that starts in its career by disturbing the natural courses of private industry, and impairing the productive power of labor, and then comes to the consumer, distended by profits of suc cessive intermediaries, and by insurance against the risks of a fickle or uncertain governmental policy, and of a fluctuating governmental standard of value blights human well-being at every step. When it reaches the hapless child of toil, who buys his bread by the single loaf, and his fuel by the basket, it devours his earnings and inflicts starvation. SECOND ANNUAL MESSAGE. 277 A. GOVERNMENTAL CLASS OF TAX-CONSUMERS. Another evil of such a system of excessive taxation is, that it creates and nourishes a governmental class witU tendencies to lessen services and to enlarge compensation, to multiply retainers, to invent jobs and foster all forms of expenditure tendencies unrestrained by the watchful eye and firm hand of personal interest, which alone ena ble private business to be carried on successfully. In other countries such a class has found itself able, sometimes by its own influence and sometimes in alliance with the army, to rule the unorganized masses. In our country it has become a great power, acting on the elections by all the methods of organization, of propagating opinion, of influ ence and of corruption. The system, like every living thing, strug gles to perpetuate its own existence. Every useful and necessary governmental service, at a proper cost, is productive labor. Every excess beyond that, so far as it is saved by the official, merely transfers to Mm what belongs to the people. So far as such excess is consumed, it is a waste of capital, as absolute as if wheat of equal value were destroyed by fire or gold were sunk in the ocean. WASTE LARGER THAN NATIONAL DEBT. Probably such waste by govermental expenditure in the eleven years since the war amounts to, at least, as much as our present na tional debt. MISGOVERNMENT IN THE SOUTH. It cannot be doubted that the systematic and extreme misgovern- ment imposed on the States of the South has greatly detracted from our national prosperity. In those impoverished communities it has not stopped with the ordinary effects of ignorant and dishonest ad ministration. It has inflicted upon them enormous issues of fraudu lent bonds, the scanty avails of which were wasted or stolen, and the existence of which is a public discredit, tending to bankruptcy or repudiation. Its taxes, generally oppressive, in some instances have confiscated the entire income of property, and totally destroyed the marketable value. ITS EFFECTS. In a region five times as large as the British Isles and three times as large as France, abounding in all the elements of natural wealth, it has destroyed confidence and credit in all transactions, diffused un- 278 THE LIFE OF SAMUEL J. TILDEN. certainty and distrust everywhere, and consumed existing capital, while retarding production and paralyzing the enterprise by which such waste might be repaired and future growth assured. HOW IT IS MAINTAINED. This system, after its character became known to us as well as to those directly affected, abhorred by all the intellect and virtue of the communities in which it exists, and by their public opinion, has been maintained through long years by the favor and patronage of the Federal Government by the moral coercion of its prestige by the standing menace and occasional exercise of its military power. ESTJUEY TO OUE OWN PEOSPEEITY. It is impossible that such wrongs should not react upon us. The immediate sufferers by it are the producers of four-tenths of the ex ported commodities, excluding specie, of our whole forty millions of people, and of the most important raw materials of our own domestic manufactures. They are agricultural communities, which, more than any others, sell what they produce and buy what they consume. They are our most valuable customers for the products of our own industries and for our merchandise ; and they make us factors in all their transactions. The State of New York, which contains the com mercial metropolis, receives the largest injury ; but its consequences extend throughout the whole country. EXCESSIVE SPECULATION. Other influences have been at work to deteriorate the financial condition of our people. The period has been full of tendencies to unsoundness in the management of private business, and in the habits of families and individuals. A series of speculative excitements has incited to enterprises which have turned out to be unremunerative, and to investments which fail to yield revenue and have lost their salable value. The capital embarked in such undertakings is destroyed. Large classes find their incomes diminished, and their convertible property reduced. OVEETEADING. Even the operations of regular business partook of the spirit of the times, and became too much expanded. Profits which came in part from the swelling of nominal prices, tempted those who were SECOND ANNUAL MESSAGE. 279 unexpectedly enriched to count on their continuance, and to enlarge their undertakings or engagements under that illusion. One who had half his capital invested in land, and buildings, and machinery, which is called fixed capital and half invested in raw materials and funds to employ workmen, which is called circulating capital, and was doing a safe and easy business was induced, for the purpose of enlarging that business, to double his investment in fixed forms. He, therefore, needed double the circulating capital ; and, instead of owning it all, had to borrow it all. The turn of the times disabled him from selling an enlarged product, or perhaps even an equal product, or of selling without loss ; and, when he needed loans to double the amount of his former floating capital, in order to carry on his business, and more in order to hold his product for a revival of the market, he found that lenders had become timid. Another discovered that an enterprise which may be good takes longer to bring returns than he anticipated. Another began when credit was easy, and failed to foresee how changeable that condition is; and, even though his hopes of profit were undiminished, found it difficult to carry his loans. EFFECTS GEXEEAL. When large classes suffer under the effects of these miscalculations, the influence will extend, more or less, to nearly all the community. A period of falling prices following a period of rising prices gen erates such results. Great fluctuations in the hopes and opinion of. the public, creating vicissitudes of credit, are the secondary cause, as they are themselves the results of some primary cause. EXAGGEEATED COST OF MIDDLEMEN. An outgrowth of the same morbid condition is the unusual and unreasonable disparity now existing between the wholesale price which the producer receives, and the retail price which the consumer pays. No doubt prolonged fluctuation in prices tends, during the up ward movement, to increase the charges of middlemen, and to enlarge the class. But the root of the evil is the uncertainty and instability. The importer adds to the price of every article he imports, the ex porter reduces the price he pays for every article he exports, as insur ance against the possible variation in the value of greenbacks when converted into the money of the world, and against the possible changes of governmental policy at Washington. 280 THE LIFE OF SAMUEL J. TILDEN. Nor can it be doubted that the condition of things has been un favorable to economy and efficiency in the management of business to frugality in private expenditure, and to energy in production. Such are the immediate causes which have occasioned excessive and unnatural consumption of our national capital, and which have retarded the natural processes of repair and growth during the last eleven years. What are the ultimate causes, and what are the remedies? NEW YORK S INTEREST IN THESE QUESTIONS. To the people of this State these are interesting inquiries. In 1874 our State tax was nearly $16,000,000. Our local taxes were over $42,000,000. Our share of the taxes of the Federal Government, on the average of eleven years, if computed on population, would exceed $50,000,000, or if computed on consumption, according to the estimate of the Finance Committee of the Constitutional Convention of 1867, would for the year exceed $80,000,000. ACTION OF FEDERAL GOVERNMENT THE ULTIMATE CAUSE. The Federal Government has the direct and exclusive responsibili ty for its own immense expenditure, and for its calamitous policy in respect to the great producing States of the South. It has likewise controlled the currency and the banking of the country. It has been the principal dealer in the precious metals. It has conducted vast fiscal transactions. Its financial Secretary has held in his hand from day to day the supply and the rates of the loan-market in the centre of capital and commerce, the terms of our foreign exchanges, the prices of exports and imports, the quality of the circulating medium, the fluctuating standard of values recognized by law as the rule in all dealings and all contracts. By the force of its example, by its ascendency over opinion ac quired in a period of public danger, during which the people formed the habit of following its leadership, by its means of propagating the ideas according to which its own operations were conducted, by all these as well as by the direct effects of its action, its measures, and its policy, the Federal Government has, therefore, practically dominated over all business and all industries, and created conditions which shape the conduct of individuals in their production and consumption, and of local governments in their expenditures, taxation, and creation of debt. SECOND ANNUAL MESSAGE. 281 FALSE EEMEDIES. It is natural that such a condition of men s business affairs should be prolific of illusory and mischievous schemes for relief. A vague notion is extensively entertained that a new issue of legal-tender notes would afford an effectual remedy. This fallacy is largely due to the false theory pervading nearly all the literature of political economy as to the agency which the quantity of the currency, even when equivalent to coin, has in causing cycles of high and low prices. EEEONEOUS TIIEOEY. As high prices and expanded currency, and low prices and con tracted currency, have been usually found together, the effect has been mistaken for the cause. It is often assumed that the banks, even when redeeming their notes in coin, can expand their issues in excess of the needs of the community, and thereby originate and con summate a general and prolonged rise of prices. ANALYSIS OF THE FACTS. An analysis of the function of the convertible bank-note, or of the processes by which cycles of high prices occur, will equally confute this opinion. A study of the order of the events which have hap pened in periods of rising prices in England and the United States, under a convertible currency, shows that usually the speculative movement at all stages precedes the increase of bank-notes. BANK-NOTES AN INSIGNIFICANT PAKT OF CEEDIT MACIIINEEY. The convertible bank-note is but a small portion of the instru ments of credit used in a commercial country. It is adapted to the wants of persons who do not keep bank accounts, and the wants, in petty transactions, of those who do keep bank accounts. It bears no interest ; and the holder has a motive to keep on hand only so much as he thinks he may require for expected or possible purchases or payments, and to invest or lend the surplus so that it will become productive. If a bank lends its note to a borrower to make a payment or a purchase, the use for that purpose is but for an instant. Unless the note is received by or passed to some person who detains it for a future purpose, it immediately goes back to the issuer through the exchanges with other banks. It has to be redeemed by reducing other loans, or by a temporary loss of a portion of the usual reserve 282 THE LIFE OF SAMUEL J. TILDEN. of the issuer. The life of a bank-note is made up of a succession of instantaneous uses, alternating with a succession of prolonged deten tions. The quantity that will stay out at any given time depends mainly on the expectancy of individuals as to future transactions, and, in a lesser degree, on the state of prices, which vary the amount used in the same transaction. In times of rising speculation the wants of the community absorb a larger quantity. Each transaction employs an amount enlarged in proportion to the enhanced prices ; transactions become more frequent, and the detentions of the means of future transactions are increased by a greater disposition to make them, and less care to economize interest. It is the competition of buyers which puts up prices in a period of speculation. Bank-notes have infinitely less to do with originating speculation, or even furnishing the means whereby it can be sus tained, than the other parts of the machinery of credit. Bank-notes, or currency as they are called, are but an insignifi cant portion of the means of purchase or payment. The transac tions effected by check, operating to transfer bank deposits, in the city of New York amount now in every eight days and some years ago amounted in every five days to as large a sum as all the legal tenders and bank-notes in the hands of the people of the whole United States. The payments effected at the London Clearing- House amount in every two days to as much as the whole circulat ing medium of the United Kingdom. The other instruments of credit by which business is carried on such as book accounts, notes of hand, bills of exchange, drafts, checks on bank deposit are thus many times the volume of bank-notes. OTHEE INSTRUMENTS OF CEEDIT PEEFEEEED. Speculative purchases are nearly always initiated by the use of personal credit. In such times confidence is high ; credit is freely given and readily accepted. The transactions are generally made on book accounts or notes of hand. These are at the command of the buyers in unlimited amount, and without delay or inconvenience. Bank credits, called deposits like bank-notes can be obtained only by borrowing. For such purposes bank-notes are only used in small transactions, and to a comparatively insignificant extent. BANK-NOTES SLOW AND DIFFICULT OF INCEEASB. The issue of bank-notes, if not limited to a fixed amount, is gen- SECOND ANNUAL MESSAGE. 283 erally restrained by laws which require a deposit of securities with the Government ; and the process of issue is so slow and inconven ient that a sudden and large increase is not possible. Those that are in the hands of the public cannot easily be collected in large amounts, but are scattered in small sums among millions of holders through out a continent. CONCLUSION. On the whole, then, it is demonstrable that bank-notes, or cur rency, when convertible, have less agency in originating or facilitat ing a general speculation than any other portion of the vast machin ery of credit of which they form so inconsiderable a part. The false theory that they are the master-cause of prices and fluctuations of prices, and that a governmental regulation of their volume will avert the tremendous vicissitudes in business to which commercial coun tries, carrying on vast credit transactions, are periodically subject, was the basis of the plan adopted in 1844, on the recharter of the Bank of England. The theory was then seen, by a few of the best thinkers, to be destitute of truth. It has since been completely refuted by experience. A PROLIFIC FALLACY. In the infancy of the very modern science of political economy, a metaphor was accepted as an axiom. It was said that, if purchasers should suddenly find two gold-coins for one in their pockets, they would pay double price for commodities. The proposition has no truth in it, except by assuming as a condition the result to be proved. It would not be true of any one buyer. It could not be true of all collectively, unless a fall in the value of gold had previously hap pened. The increased quantity could exist only as a consequence of an increased demand at the same value, or of a decline in the cost of production. In modern times, the increase in wealth and com merce is many fold the increase of population. The medium of ex change required is vastly larger than the accumulation of the precious metals, and an increased extension of credit machinery has become necessary. Bank-notes, or other circulating credits, cost as much to all save the issuer as an equal value in coin. They have to be paid for by all who use them. If individuals prefer to use coin to even a small proportion of their ability, or to hold their savings or reserves in coin ; if traders, commercial companies, and governments increase their reserved stocks 284 THE LIFE OF SAMUEL J. TILDEK of bullion to even a small percentage of the extension of their opera tions, the absorption would outrun the production of the precious metals, taking no account of the insatiable demand of the Asiatic nations. PRICE NOT A EATIO TO QUANTITY. The fact is, that price is not a mathematical ratio to be computed like a logarithm. The variations of the market are estimated by reasoning beings on the best judgment they can form of the happen ing and the effect of future events. The laws of market or temporary price are different in every case. An excess of oranges which perish in a few days, or of artificial flowers which go out of fashion, is worthless. An excess of gold, which is indestructible, and easy, cheap and safe to hold, involves a loss of interest, at the lowest rate, for the period it is likely to remain on hand. LAW OF DEPRECIATION OF INCONVERTIBLE CURRENCY. The depreciation of our legal-tender Treasury notes is not to be measured by any arithmetical formula. The law which governs it is the discount for interest until the probable time of payment, and for insurance against ris, as those two elements are estimated by the general judgment of investors. To create a demand for it, by re ceiving it in government transactions, or to reduce its supply below the demands created by law from individuals for use as legal tenders, is for the Government to make an artificial market, which operates, so far forth, as a practical redemption. HOW ISSUES OF LEGAL TENDERS INFLATED PRICES. It is consistent with this reasoning to admit and assert that the issue of legal-tender Treasury notes, during the late civil war, exerted great power over prices. It acted on the public imagination in re spect to future values. It excited great distrust that the Government, instead of having recourse for its means of war expenditure to the vast mass of our national wealth by loans and taxes, resorted to a debasement of the comparatively insignificant fund of circulating credits with which private business is carried on. It excited a grave sense of doubt how often, and to what extent, it might recur to so dangerous an expedient ; great misgiving as to the time and the cer tainty of ultimate redemption. Under these influences, in the vicis situdes of military operations, the discount became large touching, at its extreme point, sixty-five per cent, on the par value of the issues. SECOND ANNUAL MESSAGE. 285 INFLUENCE OF OPINION AND IMAGINATION. The human imagination seldom fails to exaggerate any desired or dreaded reality to which it looks forward, and it acts a great part in those cycles of ascending prices and descending prices which happen in highly-commercial countries. The origin is, in some event creat ing an anticipation of a rise in the market value of one or more commodities, which extends as by contagion to others or in an ex pectation of a general rise of prices. The upward movement some times continues for several years. The excitement begins with deal ers for profit or speculation. The instruments of credit first brought into requisition, are those which are commonly used by these classes. The small consumers are the last reached. Then bank-notes are ex panded ; and they generally continue to increase for some time after the downward turn of the speculation. EEAOTION. The reaction would take place by the mere exhaustion of the speculative impulse. Sometimes it does happen without any other cause. A speculative movement, when it ceases to go upward, can but fall. But often some special cause intervenes to precipitate the catastrophe. CAUSES OF PRESENT EEAOTION. In our present case, the most important cause of reaction is the immense waste of our capital, which has gone on in all the modes described, and especially by excessive governmental consumption. An accessory cause is the fall in prices of many of our staples, which are now produced in excess of the capacity of private consumption by an impoverished people. There are also moral causes acting on the public mind. A popular error existed that prices would not fall so long as the volume of legal tenders and bank-notes continued un- diminished. Many made their business calculations on that theory, and are disappointed, and their confidence in their own opinions un settled. These special causes, in addition to the natural exhaustion of a fictitious excitement, broke the public illusions, which had been gen erated by false systems and false theories. A great change ensued in the opinion and feeling of the people in confidence and credit, in the voluntary machinery of business, which expands and contracts ac cording to the fluctuating temper and purposes of individuals. A corresponding fall of prices resulted. 286 THE LIFE OF SAMUEL J. TILDEN. CURRENCY EXPANSION FAILED TO STOP REACTION. But the quantity of legal tenders and bank-notes in the hands of the public had not been diminished. The quantity, excluding those held by the Treasury and the banks, was larger at the crisis in Sep tember and October, 1873, than at any previous time. Yet the con tinuance of the volume of the currency the enlargement of it did not inflate prices did not even stay the fall of prices. MODERATE ISSUE FUTILE. In such a state of facts, it is obvious how utterly futile to arrest, how more than futile to reverse, the operation of these potent causes would be a new issue of any moderate quantity of legal tenders. A sudden and unexpected deficiency of currency sometimes hap pens ; and, before business can be adapted to the new condition, or can find a substitute in some other instrument of exchange, much temporary inconvenience may be felt. Such a state of things to which a new issue might be adapted does not exist. On the contrary, there is assuredly an adequate supply of currency for the wants of business and even a surplus. In eight years out of ten, the demand for from five to ten per cent, additional currency in the autumn, to move the crops, creates what is called a "fall pinch." There was none in 1875. The surplus cur rency previously on hand more than provided for that special tempo rary demand. The banks continued to lend their balances on call at low rates. The tendency to reduce the circulation because of the lack of profitable employment is still manifest. The New York City banks reduced their outstanding notes, between 1873 and 1875, from $28,000,000 to less than $18,000,000. WOULD NOT RELIEVE EMBARRASSMENT. NOT would such an additional issue of legal tenders give any di rect relief to embarrassed persons. The notes issued would have to be paid for. The difficulty with embarrassed persons is, that they have not available property to convert into currency. If they had, the conversion could be as well effected with the existing mass of currency as after such a new issue. Nor would any moderate issue of legal tenders have the least power to revive the condition of business through which we have passed ; the condition of high and rising prices of universal dispo sition to enlarge operations, undertake new enterprises, and enter SECOND ANNUAL MESSAGE. 287 into new speculations of unsound confidence and reckless use of credit ; a condition which imparted an apparent but fictitious pros perity to everything and everybody, and furnished an unnatural market for all property. Experience shows that, after such a state of business, a period follows in which the opposite ideas and feelings prevail. Such is the case now. With all the agencies having real power to create such a condition of business, operating strongly in the contrary direction, the effort to reproduce that condition, by an agency never capable of much effect} would be perfectly futile. If the Treasury should pay out a moderate additional quantity of legal tenders, they would not go into circulation or act on prices. They would merely accumulate in the money centres and reduce the rate of call loans of bankers balances. INDEFINITE ISSUE WOULD, MODEEATE ISSUE MIGHT, CAUSE DISASTER. It would be only by a large issue, or the menace of a large or indefinite issue, that a decided effect on prices could be produced. That would create alarm of such an impending depreciation as to threaten creditors with a confiscation of their debts, and holders of currency with its loss ; and they would hasten to exchange it for property. Any issue, which should act on the imagination, inciting wild estimates or wild fears of the future, might induce a speculative depreciation of the price of the currency and inflation of the prices of property. The evil, even of a moderate issue, when the currency already exceeds the wants of business, and the increase cannot be pretended to be for any legitimate purpose, especially if the object of removing individual distress by creating fictitious prices be avowed, is that it strikes at the root of all confidence and all credit. If the principle be once adopted, everybody will inquire how often such an expedient may be repeated, how far it may be carried. An attempted expansion of the petty volume of the currency, under circumstances which cause a real contraction of the whole vaster volume of credit machinery, which fill all lenders with dismay, and which destroy public confidence, hope, and faith, that are the basis of credit systems and credit operations, is self-destructive. It can be prolific of nothing but general disaster. SOUND FINANCE DEMANDED. The temper which now predominates among the people revolts at financial quackery. It is -no longer susceptible to flattering illu- 288 THE LIFE OF SAMUEL J. TILDEN. sions which have exploded amid the wrecks of individual fortunes and private prosperity. It is excessively incredulous. It demands sound measures, such as commend themselves to the judgment of the best intellects and the best experience. SPECIE PAYMENTS WITHOUT CONVULSION". After eleven years of convulsion without a restoration of specie payments, it now claims a restoration of specie payments without a convulsion. The problem does not seem difficult. Resumption by the Government will accomplish completely resumption by the banks. The Treasury has only, by gradual and prudent measures, to provide for the payment of such portion of the outstanding Treasury notes as the public, not wishing to retain for use, will return upon it for redemption. The sum required in coin, if the preparations be wisely conducted so as to secure public confidence, will be what is necessary to replace the fractional currency and to supply such individuals as prefer coin to paper for their little stores of money ; and also what is necessary to constitute a central reservoir of reserves against the fluctuations of international balances and for the banks. To amass a sufficient quantity by intercepting from the current of precious metals flowing out of this country, and by acquiring from the stocks which exist abroad without disturbing the equilibrium of foreign money- markets, is a result to be worked out by a study of all the conditions, and the elements to fulfill those conditions, and by the execution of the plan adopted, with practical skill and judgment. Redemption, beyond this provision of coin, can be effected as other business payments are effected ; or in any method which converts investments without in terest into investments upon interest, on terms the holder will ac cept ; and by such measures as would keep the aggregate amount of the currency self-adjusting during all the process, without creating, at any time, an artificial scarcity, and without exciting the public imagination with alarm which impair confidence, contract the whole large machinery of credit and disturb the natural operations of busi ness. The best resource for redemption is that furnished by public economies ; for it creates no new charge upon the people ; and a stronger public credit is certain to result from sounder finance, and will reduce the annual cost of the national debt. EXAMPLE OF FRANCE. These opinions, deduced from reason, are confirmed, in a recent example, by experience. France, in her ten months contest with SECOND ANNUAL MESSAGE. 289 Germany, incurred a war expenditure of one thousand millions of dollars in specie values; and, in the twenty-eight months following the peace, paid an indemnity of one thousand million, of dollars in specie, or its equivalent, to a foreign country. These great opera tions were carried ofl without causing a depreciation of the currency beyond two and one-half per cent, at its extreme point, and without disturbing the general business or industry of the people. OUE GREAT NECESSITY. What is most needed now is, that the public mind be reassured by a wise, safe, and healing policy. The dread of imaginary evils as cribed to the methods assumed to be necessary to restore specie pay ments is more mischievous than the reality, wisely pursued, ought to be. As soon as the apprehension of an impending fall of values is removed, manufacturing and mechanical industries will start anew, dealers will buy for future consumption, enterprises that commend themselves to the sober judgment of investors will be undertaken, and capital, which now accepts any low rate of interest, where there is no risk, but is withheld from operations of average character, will be lent on reasonable conditions. TEUE EEMEDIES. But the remedies for the evils now felt by the people in their business and industries must extend beyond any measures merely re lating to the currency. They must be broader and deeper. They must begin with a prompt and large reduction in governmental ex penditures and taxation, which shall leave in the hands that earn it a larger share of the result of labor. They must proceed by with drawing, as much as possible, governmental interferences that cripple the industries of the people. They must be consummated with an increased efficiency and economy in the conduct of business and in the processes of production, and by a more rigorous frugality in pri vate consumption. A period of self-denial will replace what has been wasted. We must build up a new prosperity upon the old foundations of American self-government; carry back our political systems toward the ideals of their authors ; make governmental institutions simple, frugal meddling little with the private concerns of individuals aiming at fraternity among ourselves and peace abroad and trusting to the people to work out their own prosperity and happiness. All the elements of national growth and private felicity exist in our 13 290 THE LIFE OF SlMUEL J. TILDEN. country in an abundance which Providence has vouchsafed to no other people. What we need to do is to rescue them from govern mental folly and rapacity. It is due to the Republican majority to- say that the mes sage was well received by the better class of their representa tives. Before the end of the session several earnest partisans, who had set out to oppose the Governor, discovered that they could better serve the State and their constituents by follow ing his advice. Some who were his bitter enemies became his friends. CHAPTER XXI. THE VETO OF THE PAUPER-LABOR BILL. 1876. THROUGHOUT his whole career, Governor Tilden has evinced a determination to protect, so far as lay in his power, the working-men in their just rights. The Legislature of 1876 enacted a law which was particularly objectionable to the working-classes in New York City, inasmuch as it threatened to bring them into competition with all the paupers and con victs iii charge of the authorities, at a time when general dis aster had overtaken business, and work at any price was diffi cult to obtain. The Governor vetoed the bill in the following message : STATE OF NEW YOEK, EXECUTIVE CHAMBER, j ALBANY, March 14, 1876. ) To the Assembly : I herewith return, without my signature, Assembly Bill No. 12, entitled " An act to provide fo;r the employment of convicts and pau- pera under the control of the Commissioners of Public Charities and Correction of the City and County of New York." This bill commands the Commissioners of Charities and Correc tion for the City of New York to furnish employment to " every able- bodied convict or pauper confined in the institutions under their care " who cannot be employed " to advantage or profit " in getting out stone, cultivating ground, or manufacturing for the use of the said departments, with such mechanical or ether labor as " will yield the greatest revenue to the departments," and enable him to be kept con stantly employed during the term of his imprisonment. This provision does not merely confer authority on the commis sioners. It is mandatory. It contains no qualification. It allows no discretion. The rule in respect to the choice of industries in which the convicts and paupers are to be employed is absolute. The work 292 THE LIFE OF SAMUEL J. TILDEN. to i>e carried on is that which will " yield the greatest revenue." The theoretical principle of political economy in respect to private business, which, to the honor of humanity, is qualified and tempered in practice remorseless competition for the greatest profit is en- "acted as the law in the selection of the industries to be followed. Unless the legal effect of this enactment is qualified by the last clause of the same section, any intentional deviation, any conscious devia tion from this rule by the commissioners, would be itself a misde meanor. It would expose the commissioners to a liability to take their places with the convict portion of the persons under their care. It is true that an amendment was added to this section by the Senate, making it also the duty of the commissioners, " so far as in tJieir judgment 1 1 may be "practically and advantageously" done, to take those industries and such a diversity of them as may " tend least to conflict with the interest of free industries and trades in the said city and county." Under the established principle of construing the parts of a stat ute so that they will all stand together, it is probable that this clause would be ineffectual to modify the operation of the rule laid down in the former part of the section. Even the authority to prefer the in dustries which " tend least to conflict " is limited to cases in which it may be "advantageously" done. Could it be deemed "advanta geous " to choose industries which would yield less profit than others ? Nor does this provision apply in favor of the industries of Brooklyn or any other part of the State than the city of New York. The chief significance of this clause is its apparent expression of distrust by the Legislature, and of a disposition to qualify the main provision of the section. The second section of the bill appears to be intended to enlarge the powers of the commissioners to embark in manufacturing on ac count of the city corporation, which is itself a questionable experi ment in view of the results of all business enterprises heretofore un dertaken by the public authorities, and is only to be sanctioned after the greatest consideration, and with the most careful guards against the mischiefs which have been engendered in similar cases. Other provisions of the bill are imperfect, uncertain, and improvi dent. For instance, the clause prohibiting the commissioners from entering into any " contract by which they shall in any manner re linquish the control, support, and discipline of the said paupers and convicts " though probably not intended to have such an effect-:- THE VETO OF THE PAUPER-LABOR BILL. 293 may conflict with the humane provisions of the act of last year " for the better care of pauper and destitute children." It is desirable to make the prisons and almshouses of the city of New York contribute as much to their own support as they can con sistently with their objects and with the welfare of all classes of our citizens ; and no doubt the occupation of their inmates in work tends to discipline, to health, and to reformation. The problem is, how to attain these salutary ends without injuring the interests or wounding the just self-esteem or the honorable sentiments of the skilled arti sans and working-men who are the strength of a state ; who have made American labor, on the whole, more efficient than any otlrer in the processes of production, and conferred on our country the re nown of its achievements. The best solution of this problem is worthy of the most patient and considerate thought and of continu ous effort. A constitutional amendment changing the system of ad ministration of the State-prisons passed both Houses last year, and is now pending. The State Board of Charities are addressing their best faculties to their beneficent work. A special investigation of the subject of pauperism was recommended in my annual message, and is under your consideration. In the present depressed state of busi ness when scarcely any industry is remunerative, even with the ad vantages of being long established, and of having private supervision and management it is not likely that any new business enterprise or speculation carried on by the public officers would have immediate results in profits to the Treasury. Nor is it to be overlooked .that unexampled distress from the want of remunerative employment now exists among the mechanics and working-men of the city of New York. If government may maintain an organized system of relief for paupers, it may at least exercise forbearance, in a period of business disaster, toward those who are struggling with difficulties that tend to swell the class to which such relief is given. It can abstain, not only from actual injury, but from holding up to their imagination the spectre of a new governmental competition ; from rash or experi mental changes in the system and laws to which the people are ac customed ; from inconsiderate or imperfect measures, the effects of which cannot be foreseen or completely understood. In the mean time, a real and vast reduction of the burden of taxation can be se cured in other methods, for the support of which all classes and in terest may be expected to cooperate. The reform of the canal ex- 294 THE LIFE OF SAMUEL J. TILDEN. penditures of itself will save more than a million of dollars a year to the tax-payers of the metropolis. That measure is an example of a liberal policy toward the hoatmen and transporters in a reduction of tolls made coincidently with a far larger remission of taxes, and an harmonious cooperation of both classes to secure the reform. The policy which I had the honor to recommend to the Legislature in my message at the opening of the present session, if adopted and faith fully carried out, will secure to the tax-payers of the city of New York a remission of taxes in 1876 as compared with 1874 of four millions of dollars, or about one-half of the entire taxes of the city for State purposes. In such prospects of being themselves relieved and in such necessity of general cooperation, the tax-payers of a com munity like the city of New York cannot afford to turn only the sacrificial side of public retrenchments to the mechanics and work ing-men, who really bear in indirect forms their full share of the taxes, but who, because they do not pay directly, too often fail to recognize the full benefits to themselves of the policy which reduces such burdens. (Signed) SAMUEL J. TILDEN. It is to be observed that the Governor bases his veto on substantial and sufficient constitutional grounds ; but it can hardly be doubted that his sympathies prompted him to scru tinize the act more closely than he would have done if it had proposed to institute no objectionable, policy. After the veto of this bill the working-men of New York held a well-attended mass-meeting, at which the Governor s course was emphati cally approved. CHAPTER XXII. THE PEELIMINAKY CANVASS FOE THE PRESIDENCY. IT is an undeniable fact that few men who make a busi ness of politics are able to interpret the will of the people. They believe oftentimes that the people have no will that what is called " public sentiment " is created to order either by the devices of demagogism or the tricks of the newspaper press. " The government of the people, by the people, for the people," they look upon us as a popular delusion, to be praised in public a^id- sneered at in private. This cynicism, which seems to prevail among seven-eighths of the office-hold ing class, was never shared by Mr. Tilden. His faith in the people is unwavering. Very many times during the past thirty years, when those around him were filled with doubts and fears, he has said, " If we can only reach the voters and learn their opinions we cannot go astray." When he was at the head of the New York Democratic State Committee his plan of conducting a canvass was to put himself in com munication with as many Democrats as possible, that he might learn from them the drift of sentiment. Some years he re ceived as many as ten thousand letters relating to politics. He measured his own intelligence by the amount of infor mation thus acquired from farmers, mechanics, lawyers, doc tors, working-men, and all classes of citizens. Mr. Tilden s confidence in the people was fully met by their faith in him. In his long struggle with the Tammany conspirators, in his brilliant fight against the " Canal Ring," in all the achievements -of his public life, he has been sustained by a power which was irresistible the power of the people. 296 THE LIFE OF SAMUEL J. TILDEN. That the professional politicians did not comprehend this power was evident in the preliminary canvass for the presi dency. They could not understand why the voters from Maine to California should direct their attention, by a com mon impulse, to the unpretentious man in Albany who had found time, amid the routine duties of his office as Governor of New York, to stop the stealing and reduce the taxes. It was commonplace sort of work from the. standpoint of these people " work fitter for a detective than for a gentleman " one of them remarked but none the less it appeared to be work that was appreciated. Mr. Tilden was not counted among the orators of the country. He had not traveled over that road lined with offices which is supposed to lead to the presidency, but which has oftener led to humiliating disappointment and defeat. He was not within the charmed circle from which it was thought that the candidate must be taken. The Republicans did not want him to be the Democratic nominee. The lead ers heard some of their followers say that if he were nomi nated they might vote for him for the homely reason that he had reduced the taxes. It was too hard to answer that sort of an argument, and they therefore preferred a different man. Many of the Democratic politicians, particularly those who abide in Washington during the winter, were convinced that he possessed no strength . Washington creates an atmos phere of its own, in which light things appear heavy and heavy things have no weight. It is not until the Congress man returns to his constituents and breathes the purer air of his home that he discovers the mistakes he has made in re gard to public opinion. As Governor Tilden s strength began to increase and the probability of his nomination to grow greater, the attacks upon him became more bitter every day. He was charged with " stealing a railroad " a polite way of referring to his connection with the Terre Haute, Alton & St. Louis road, which is made the subject of a chapter elsewhere. He was THE PRELIMINARY CANVASS FOR THE PRESIDENCY. 297 also charged with being a secessionist, and to that accusation some notice is given in the proper place. Among the miscel laneous slanders was. one which is still repeated, to the effect that Mr. Tilden conspired with Tweed to perpetrate election frauds in 1868. The charge is based on a forged letter, of which the following is a copy : ROOMS OF THE DEMOCRATIC STATE COMMITTEE, ) October 27, 1868. J MY DEAR SIR : Please at once to communicate with some reliable person, in three or four principal towns and in each city of your county, and request him (expenses duly arranged for this end) to telegraph to William M. Tweed, Tammany Hall, at the minute ot closing the polls, not waiting for the count, such person s estimate of the vote. Let the telegraph be as follows : " This town will show a Democratic gain [or loss] over last year of [number] ; " or this one, if sufficiently certain: "This town will give a Republican [or Democratic] majority of ." There is, of course, an important object to be attained by a simultaneous transmission at the hour of closing the polls, but not longer waiting. Opportunity can be taken of the usual half-hour lull in telegraphic communication over lines before actual results begin to be declared, and before the Associated Press absorb the telegraph with returns and interfere with individual messages, and give orders to watch carefully the count. Very truly yours, SAMUEL J. TILDEST, Chairman. This document was printed in the New York Evening Post on the 3d of November, 1868, and its authenticity ques tioned. The next day appeared the following : CARD FROM MR. TILDES. To the Editor of the Evening Post. SIR : My attention has been called to an article in your journal of last evening containing a circular to which my name is appended. I hasten to assure you that you will not lose your reputation as critics by assuming, on internal evidence, as you have correctly done, that no such paper was ever written, signed, issued, or authorized by me, or with any participation or knowledge on my part. I have read it for the first time in your columns ;" but I have no reason to believe that it had any such evil purpose as you suspect. For myself, I re- 298 THE LIFE OF SAMUEL J. TILDEN. fused in 1844 to sign the famous "secret circular" relating to Texas, which is celebrated in the history of the Evening Post, though I might have been tempted by the illustrious association in which I should have found myself. Neither before that, nor since, have I ever been concerned in any circular marked " secret," "confidential," or " private ; " nor shall I be, unless I should adopt that device for the purpose of getting some valuable truth, disguised in such a form, secured a wide publicity in the Evening Post and all the Republican newspapers. Very truly yours, S. J. TILDEN. NEW YORK, November 4, 1868. If the foregoing card does not form a sufficient answer to the charge, perhaps the following lucid explanation which Mr. Tilden offered to the New York Times in 1873 will serve the required purpose : THE ELECTION OF 1S68. {Times Editorial, February 10, 1873.] And while Mr. Tilden is about it, will he explain to the public how he, in company with William M. Tweed, swindled the people and stuffed the ballot-boxes in 1808, so that it was made to appear that Seymour and Hoffman carried this State over Grant and Gris- wold ? No one knows better than Samuel J. Tilden what a farce and a fraud that election was, and Mr. Tilden knows just as well that it was in his power to have given the people a fair election. . . . Mr. Tilden was Tweed s partner in the shameless trickery of 1868. It is scarcely necessary to reply that there is not a particle of truth in any of these statements. They are total fictions. Nobody ever pretended, as a matter of fact, that Mr. Tilden had any knowledge of, agency in, or gave any aid or countenance to any frauds, in that or any other election. Nobody could so pretend with out utter falsehood. In the winter of 1868- 69 a congressional committee made an elaborate and protracted investigation into the alleged frauds at the then recent election. The evidence, incidentally developed for no body professed to charge, or even suspect, any complicity on the part of Mr. Tilden showed facts and relations which proved the contrary. The argument, or inference, that he must have acquired knowl edge of such frauds as chairman of the State Committee, or had THE PRELIMINARY CANVASS FOR THE PRESIDENCY. 290 power to prevent them, is without any foundation. What were the relations between Mr. Tilden and the men accused of those frauds and receiving the benefit of them, and where the power to prevent such frauds really resided, will now be shown. As stated on page 13 of the letter, in the passage respecting the " formative period " of the " Ring," the antagonism between those who became its leading members and Mr. Tilden was "sharply de fined and public." This antagonism had begun as early as 1863. In the State Convention of September, 1868, there was an open contest. Mr. Allen 0. Beach was nominated chiefly by the efforts of Mr. Tilden for Lieutenant- Governor by a large majority. The result was described in the Times as a triumph over Tammany. In August, an elaborate attack on Mr. Tilden by one of the journals of tbe " Ring " was copied into the Leader, edited by Mayor Hall. Mr. Tilden was about the last man in the State to whom these persons would have intrusted any of their secrets or plans. Still less would they expose to him any illegal or fraudulent schemes of theirs. The State Committee had no function in respect to the conduct of the election in this city. Mr. Tilden did not belong to the Gen eral Committee of the city, and, during the years of the ascendency of the " Ring " in the city organizations, had no connection with those organizations no voice in local nominations and never asked or accepted any appointment for a friend. At that time he had about as much relation to the ruling powers of Tammany as Mayor Havemeyer may be supposed to have to the clique now controlling the local Republican organization, whom he has lately described with so much picturesque effect. The State Committee was an object of jealousy and fear to these men. It was at all times perfectly independent of them, and re ceived very little aid in contributions toward its moderate and neces sary expenses and often none from the whole office-holding class of the city. In the election of 1868 the " Ring " were playing their own per sonal game. Even in 1864 it had been suspected that the leading persons w T ho afterward formed the " Ring " were untrue to Horatio Seymour, the Democratic candidate for Governor, as well as to Gen eral McClellan. They never forgave Governor Seymour for vetoing the Broadway Railroad Bill, in 1863, in which they, with their Re publican allies, had become largely interested. 300 THE LIFE OF SAMUEL J. TILDEN. In 1868 it was believed before the election that they had plotted a scheme to keep Horatio Seymour, the Democratic candidate for President, behind his ticket. They did, in fact, withhold from him all the votes they could without detection, and bargained with the corrupt Republicans with whom they were in partnership, at his ex pense. Their constant study was to pervert to their own selfish gain the efforts and sacrifices of 4,000,000 Democratic voters in the country, and 450,000 in this State. They never hesitated to sac rifice or to sell the general objects of the Democratic party, its prin ciples or its ^measures. They never contributed to its advancement, except so far as was necessarily incidental to their own purposes of holding power in the municipal government. Their object Mr. Tilden never had any sympathy with, or any disposition to promote. At the time of the election in 1868, the presidential contest had already been lost in the October elections, and he had only to fulfill his duty toward the Democracy of the State and Union. It appeared, in the congressional investigations, that not only did he have no connection with the naturalizations, but he did not even know who were the naturalization committee of either party, or where they had their offices. The first-fruit of the success of the " King " in gaining increased influence at Albany, by that election, was a scheme immediately concocted to depose Mr. Tilden from the State Committee. The power of the " King " in this city had been derived from Republican legislation, and the corrupt means by which they had obtained that legislation were a division of the city offices, contracts, jobs and bribery. In 1868j and for three years previous, the Mayor, Comptroller and Street Commissioner, were removable by the Gov ernor ; half the supervisors were Republicans, and nearly all the commissions, embracing vast patronage, were Republican. The inspectors of election the canvassers who counted the votes the clerks of the polls and the registers were all appointed by the Board of Police Commissioners. Half of the members of this board and all its chief officers were Republicans. Thomas C. Acton was its president ; Seth C. Hawley its chief clerk ; S. C. Hawley, Jr., secretary ; and John A. Kennedy, Superintendent of Police. It would have been impossible to credit beforehand that, under these circumstances, at a hotly-contested presidential election, when the Republican party was watchful, and straining itself to the ut most systematic frauds in voting and canvassing could be perpe- THE PRELIMINARY CANVASS FOR THE PRESIDENCY. 301 trated without the complicity of the leading representatives of the Republican party in the city ; nor is it easy now to see how that was possible. The idea of imputing to Mr. Tilden responsibility for election frauds, of which he had no knowledge beforehand, with which he was in no manner connected and which he in no wise aided or abetted on the assumption that "it was in his power to have given the people a fair election, when he had no voice in shaping the election laws or appointing the election officers which laws had been made by the Republicans, and which officers were practically appointed by the Republicans is too absurd to need discussion. The Assembly chosen at that election was, by a large majority, Republican. The Senate was Republican. It was in their power to alter the election laws, and the mode of appointing officers of the election. They did not. At the next session, when there was a Democratic majority, Mr. Tilden endeavored to do so ; but his elec tion law was beaten, and the election law under which Mayor Hall got the practical control of all these officers passedevery Republi can Senator voting for it, and the Times filling the air with its lauda tions. The one element of good which that law contained " watch ers " of the canvass, to be appointed by the candidates, was taken from Mr. Tilden s bill. The truth is, that frauds at elections are usually the work of men having a special and often a pecuniary interest in the local results. Fanatics who commit crimes to advance their abstract ideas of na tional or State politics are rare exceptions to the ordinary course of human nature. If a " Ring " had not already been formed embrac ing the wire-workers of both party machines such frauds as are alleged of the election of 1868 could not have been possible. It is proper to add that at a time when Horace Greeley labored under the impression that Mr. Tilden might, by the simple strength of his name, prevent all frauds at elections, he addressed to him a letter on the subject, of which the fol lowing is J;he opening paragraph : LETTEE TO A POLITICIAN. To SAMUEL J. TILDEN, Chairman Democratic State Committee. SIE : You and I are growing old. We came here young men from the country, and have lived and struggled side by side for nearly 302 THE LIFE OF SAMUEL J. TILDEN. forty years. We have participated ardently in many political strug gles, always on different sides. You were the pupil and protege of Van Buren and Silas "Wright ; I a disciple and follower of Henry Clay. But this I will say for you, that I am confident you have never sought to enrich yourself by politics, or at the expense of the public that whatever of wealth you may have acquired or enjoyed was earned in your profession as a lawyer and that your instincts and your influences, partisanship apart, have generally been felt on the side of economy in public expenditure and uprightness in the conduct of public affairs. Of my course in these respects you are welcome to say whatever you think true. The effect of the various charges of which notice has been taken herein "was, to concentrate public attention on Mr. Tilden. The opposition of the few brought out the positive and even aggressive friendship of the many. Governor Hen- dricks, Senator Bayard, General Hancock, Governor Parker, and other distinguished Democrats, were thrown in the back ground, not so much by the positive popularity of Governor Tilden as by the folly of his indiscreet enemies in continually denouncing him. Back of the candidate was his record the record of reform and behind that was the feeling, wide-spread and almost universal, that in that sign we conquer. Under such circumstances the Democratic National Con vention assembled at St. Louis on the 27th of June, 1876. CHAPTER XXIII. THE ST. LOUIS CONVENTION. THE convention came together in the great hall of the Board of Trade in St. Louis at noon, on the 27th of June. The building is especially adapted to the purposes of such an assemblage. Its double tiers of windows, seventy in all, make the interior light and cheerful. The hall itself is two hundred and twenty-two feet long and ninety-two and a half feet wide. The frescoed ceiling stretches across sixty feet from the floor, while more than half-way up runs a light, nar row gallery encircling the hall between the two stories of windows. There is nothing to break the simple harmony of the architecture, which is impressive from its very plainness. The hall will hold fully five thousand people. During the conven tion the interior was decorated in sympathy with the spirit of the occasion. The escutcheons of the States were hung from the gallery, each bound with a sheaf of wheat, and joined to its neighbor by a silken tie in the national hues. On the long platform for distinguished guests, erected opposite the main entrance, were thickets of creeping vines and flowers, while in the centre, also decorated with plants and shrubs and flowers, was the dark, handsome rostrum made of black- walnut. In front of this the delegates to the convention sat in a great semicircle, covering almost the whole breadth of the hallj but leaving at the sides spaces where sat an intelli gent and sympathetic audience, whose eager enthusiasm had often to be restrained that the business of the convention 304 THE LIFE OF SAMUEL J. TILDEN. might proceed. The platform, therefore, looked across the hall and not down its length, so that the voices of the speak ers could readily be heard by every delegate. Stress of public business at Washington, where so many prominent and able Democrats were striving to reduce expen diture of the people s money and oppressive taxation, kept many away from the convention who would gladly have been present. They were compelled to remain at their posts to watch and to foil the efforts of a Republican Senate in the direction of extravagant appropriations sought for personal emolument and for use in the presidential campaign. Never theless, many able and distinguished Democrats were present, most of them as delegates. From Alabama there were General Pope Walker, who was Secretary of War under the Confed eracy, and who is now as faithful to the Union as he once was to the South ; and Colonel Shaster, who was in Congress thirty years ago, a Democrat then and a Democrat now. From California there was " Duke " Gwin, once a Senator of the United States ; from Connecticut, Senator William H. Bar- num, the Hon. R. D. Hubbard, General W. B. Franklin, and C. M. Ingersoll ; from Delaware, ex-Congressman William G. Whitele} r , and ex-Governor Saulsbury ; from Florida, C. W. Yulee ; from Georgia, Governor James M. Smith, and Congress man Pierre M. B. Young ; from Illinois, General John A. McClernand, ex-Governor Gustav A. Koerner, Perry H. Smith, and Herman Lieb ; from Indiana, Senator McDonald, Daniel W. Voorhees, B. W. Hanna, and D. S. Williams ; from Ken tucky, Henry Watterson, editor of the Louisville Courier- Jour nal, W. C. P. Breckinridge, ex-United States Senator W. B. Machin, John M. Rice ; from Louisiana, R. A. Marr ; from Maryland, ex-Congressman Stevenson Archer ; from Massa chusetts, Congressman Josiah G. Abbott, George W. Gill, Frank W. Bird, Sumner s life-long friend, and Richard. Froth- ingham ; from Missouri, Governor Charles H. Hardin and ex- Governor Silas Woodson ; from Nebraska, George L. Miller ; from New Jersey, ex -United States Senator J. P. Stockton, THE ST. LOUIS CONVENTION. 305 Congressman Miles Ross, and State Senator Leon Abbett. The New York delegation contained a remarkable array of names : Senator Kernan, Lieutenant-Governor Dorsheimer, Congressman Abram S. Hewitt, Hon. Henry C. Murphy, Gen eral Roger A. Pryor, John Kelly, John C. Jacobs, Samuel S. Cox, August Belmont, Oswald Ottendorfer, Manton Marble, Edward Cooper, Mayor Wickham, Augustus Schell, Congress man George M. Beebe, and ex-Lieutenant-Governor Beach. North Carolina sent ex-Senator T. C. Clingman ; Ohio, Gen erals Thomas Ewing, G. W. Morgan, and J. B. Steadman ; Pennsylvania, Senator Wallace, Heister Clymer, and Malcolm Hay ; Texas, ex-Congressman Herndon ; Virginia, Fitzhugh Lee and ex-Governor Gilbert C. Walker ; West Virginia, J. J. Davis ; and Wisconsin, ex-Senator Doolittle, Alexander Mitchell, and G. B. Smith. The convention was called to order by Augustus Schell, chairman of the National Democratic Committee, and so long and honorably identified with the history of national Democ racy. The first words of his speech showed how thoroughly united the party was on the issue which Governor Tilden chiefly represented, though as in the case of this very speaker Govern or Tilden might not be the first choice as a candidate. Mr. Schell struck the key-note *of the convention and the campaign when he declared the need of the times to be administrative reform. Almost every speaker who followed him enlarged upon the theme which he had suggested, and the platform set it before the people as the one living and enduring issue which no false issue could overthrow, and from which demagogues could not divert the attention of the people. Mr. Schell said that the need of the times was administrative reform, and that the Administration must not be left in the hands of those who have stained it. The next issue of importance was . the currency issue. He denied that the Democracy was the soft-money party, and pointed to the legislation and decisions of the past to prove that the Republican party was the paper- money party, since it originated and has perpetuated it. He 306 THE LIFE OF SAMUEL J. TILDEN. charged the present business depression on the acts of the Republican party, and said : How is it to be remedied? The Democratic party, with its inter ests, will see that the remedy is applied of frugal and economical government and a diminution of taxation. It cannot be brought about by forced contraction. It should not be by additional inflation ; but we take the country as it stands. We are called upon to apply the remedy, and one remedy which commends itself to every honest man and to every reasonable Democrat is to demand the repeal of the resumption act. Kepeal that act, put the Government in the power of the Democratic party, and let them pursue the course which they will pursue, of an economical administration of that Govern ment, and I assure you that the time is not far distant when specie payments will be resumed, the prosperity of the country be restored, and the American people be happy once more.. At the conclusion of his remarks, Mr. Schell announced the temporary chairman of the convention, Mr. Henry Wat- terson, editor of the Louisville Courier- Journal. The an nouncement was received with an enthusiasm which showed that Mr. Watterson s liberal tendencies had not cost him the political friendship of his fellow-Democrats. Though coming from a border State with strong Southern sympathies, whose Democracy, intrenched in an overwhelming and invariable majority, was always conservative and sometimes backward, Mr. Watterson s work had always been for progress and lib eralism. For this reason he warmly urged the indorsement of the nomination of Horace Greeley in 1872, believing that it would best express the national demand for amnesty to the South, and for this reason he was warmly in favor of the nomination of the great reform Governor of New York, seeing that the times demanded of the party a full devotion to the work of reform. His selection was no less a triumph of the best elements in the party than a personal compliment to a brilliant soldier in the Democratic ranks. Mr. Watterson was escorted to the chair by Senator Bar- num, of Connecticut, and Senator Ransom, of North Carolina, and spoke as follows : THE ST. LOUIS CONVENTION. 307 GENTLEMEN OF THE CONVENTION : We are called together to de termine by our wisdom whether honest government, administered by honest men, shall be restored to the American people, or to decide by our folly that it is the destiny of this country to pursue -an endless, ever-revolving circle of partisan passion and corruption, until, with the loss of our material well-being, we lose the poor man s last hope civil liberty itself. Every citizen of the republic, be he of one party or the other, feels, and has felt for many a day, the depressing influence of what are called hard times. We look about us and we see neglected fields and vacant houses. The factories are closed, and the furnace-door is shut. There are myriads of idle hands. The happy activity of prosperous life is nowhere to be found. Loyalists fatten while honest men starve. Empty the mart, and shipless the bay. What is it? what has wrought so great a change in a land that under the rule of an intelligent, progressive, constitutional party ad vanced, within half a century, from the condition of a huddle of petty and squalid provincial sovereignties to a foremost place among the nations of the earth ? The reason of men must answer partisan misrule and sectional misdirection. The ^Republicans, my friends, are not alone responsible. With them rest the disgraces, with us the follies. These twin agents of national mischance, working under the miserable rule of contraries, have kept the people of the North and South aside, and have supplied sustenance to corruption. They have disturbed values, they have unsettled prices, they have made our whole financial system a cheat and snare. They have driven- the best elements of political society into exile, and have organized charlatanism into a sort of public polity, enabling the rogue to get a cheap advantage of his dupe, and sacrificing every popular interest to the lust of that oligarchy which has become so incrusted with power as to believe itself entitled to rule by the sheer force of its own wrong-doing. So much let us set down to the convenient pretext of war ; so much to the long account of damages between the North and South. It is for you to say whether the same conflict, with consequences multiplied and magni fied, shall by any act of yours be inaugurated between the East and West. I shall not undertake on an occasion of this kind, and in a pres ence so imposing, to enforce the familiar lesson of mutual forbear ance. Nobody doubts our capacity to make battle among ourselves. Entreating you to direct your energies to the common enemy, I ask 308 THE LIFE OF SAMUEL J. TILDEN. indulgence only on my own behalf. You have called me- to a place not merely of distinction, but of difficulty ; to a place which requires the best training of a better man than I am ; and, in taking it, I trust to your confidence, good-nature, and hearts incapable of an unmanly or unfair act. The work before us should relate to ideas rather than to individuals ; it is the issue, not the man, that should engage us. We have come here to make the people s, not onr fight, for a free no less than for an honest Government ; fof the reform of the public service and the regeneration of public morals; for administrative relief from administrative nihilism, embraced in the simple creed of home-rule, reduced taxes, and a living chance for the South as well as for the North, for both the East and the West. If anything comes of our proceedings, it must spring from the spirit of association and fellowship when warmed. The followers of Andrew Jackson and Silas Wright, of Henry Clay and Daniel Webster, and their political descendants, meet together on common ground at last to wrest the government of their affairs from the clutch of rings and robbers, Federal, State, and municipal, and mean to extirpate these wherever they are found, and whether they are Republican or Democratic. Frederick O. Prince, of Massachusetts, was made tempo rary secretary, and T. O. Walker, of Iowa, and H. K. Doniphan, of Ohio, assistants, and Daniel Able, of Missouri, sergeant-at- arms. The rules of the last National Convention were adopted, including the two-thirds rule against which Gov ernor Tilden s friends made no demonstration, as it was sup posed they might. They were too strong to need resort to such measures. The following was the Committee on Platform : Alabama Leroy P. Walker. Arkansas L. V. Maguire. California John S. Hager. Colorado F. J. Marshall. Connecticut R. D. Hubbard. Delaware George Gray. Florida John Westcott. Georgia E. P. Ho well. Illinois J. A. McClernand. Indiana D. W. Voorhees. Iowa H. II. Trimble. Kansas Thomas L. Davis. Kentucky Alvin Duval. Louisiana R. H. Marr. Maine D. R. Hastings. Maryland George Freaner. Massachusetts E. Avery. Michigan W. L. Bancroft. Minnesota Daniel Buck. Mississippi A. M. Clayton. THE ST. LOxJIS CONVEiNTION. 309 Missouri-r-0. H. Hardin. Nebraska George L. Miller. Nevada A. 0. Ellis. New Hampshire E. 0. Barley. New Jersey Joseph W. Yates. t New York W. Dorsheimer. North Carolina T. L. Olingman. Ohio Thomas Ewing. Oregon M. V. Brown. Pennsylvania Malcolm Hay. Ehode Island W. B. Beach. South Carolina Sam. McGowan. Tennessee John C. Brown. Texas Ashbel Smith. Vermont James H. Williams. Virginia John A. Meredith. West Virginia John J. Davis. Wisconsin Alexander Mitchell. The permanent chairman of the convention, named at the afternoon session of that day, was General John A. McClernand, of Illinois, who was escorted to the chair by a committee con sisting of Manton Marble, of New York, Thomas S. Bocock, of Virginia, and Daniel W. Voorhees, of Indiana the two former being appointed in place of General Fitzhugh Lee, of Virginia, and Lieutenant-Governor William Dorsheimer, of New York, who were absent. General McClernand spoke as follows : GENTLEMEN OF THE NATIONAL DEMOCRATIC CONVENTION : I thank you for the distinguished honor which you have done me in directing me to preside over your deliberations. You are the delegates of the Democracy of the whole Union ; of thirty-seven States, once unnat urally estranged, but now forever united in one indivisible republic. Brethren of one political family, with the same heritage of liberty un der equal law, and heirs of one destiny, shall we preserve and trans mit that great heritage? Shall we make that destiny the most glorious in the history of free peoples ? If your deliberations, fellow- Democrats, to-day shall be wise ; if your perception of the necessities of our time, our country, our politics, shall be just and sagacious; if your sympathy shall be quick with the hearts of a great people, then, beyond all peradventure, we shall transmit to our children and our children s children unimpaired this priceless heritage. Yours will be a better renown than the renown most prized by Romans, condi tores imperiorium, for greater than the founders of empires are the preservers of republics. There are no enemies of the Union to-day on this continent except that administrative centralism which is congesting at the Capitol the vital currents which ought to flow out through every part, giving life to the farthest extremities of the body politic, and energy to all its 310 THE LIFE OF SAMUEL J. TILDEN. members ; except that corruption which is the curse that centralism has never failed in age or land to entail upon any government. Cen tralism and corruption have imposed upon ten States the rapacious tyrannies of carpet-bag rule, and- since the peace have added $200,- 000,000 to their debts. They have infected the governments of our Northern States and Northern cities with the same disease of extrav agance and fraud. They have debauched the Federal Government itself, and made the names of scores of its high officers and public men our public scandal, our open shame. The record is one of horrible incapacity, venality, waste, and fraud; and the party which has been powerless to head down and trample under foot its corruptionists, with stupendous effrontery pledges itself to a reform of which it has become incapable. That party pledged itself to restore specie payments, every year taking us further from, specie payments ; it pledged itself to civil service reform, and then dropped and mocked its reformers ; it pledged itself to protect American labor, and with its monstrous custom-house tax ation on over three thousand articles it has impoverished American labor. A few score monopolists, a few thousand corruptionists have been enriched, but capital in the hands of those that earned it by in dustry and saved it by frugality is everywhere distrustful and rusts unused, while honest labor goes about the streets begging bread. Is this, then, the final outcome of a century of republican self- government? God forbid it, gracious God! But we have wandered far from right paths ; we must return to the constitutional principles, the frugal expenditures, and the administrative purity of the founders of the republic. This is the first, the most imperious necessity of our day and nation ; this is the appeal we have to make to our fellow- citizens of every former political affiliation; this is the one supreme, commanding issue to which all others are inferior, all others trivial : Keform ! Eeform ! Eeform ! If you shall recognize this imperious necessity; if you shall guarantee in your platform the successful achievement of this arduous work of national regeneration ; if you shall select standard-bearers true to your own high purpose and faithful to your pledge, victory in the November, victory in the Oc tober contests are already yours. Incorporate the vital issues of re form in candidate and platform, and the States that have hon ored Douglas and Lincoln, the States that to-day honor Hendricks and Thurman, Hancock and Parker, Bayard and Tilden, these States, with all of their vast population, will rise, like the woods and the THE ST. LOUIS CONVENTION. 3H winds that followed the fluting Orpheus, and follow you to vic tory. Owing to the inability of the Committee on Platform to report that afternoon, the convention adjourned until the next day. Before this, however, Mr. August Belmoiit, of New York, addressed the convention as follows : ME. CHAIRMAN : I hold in my hands a resolution, for which I claim the consideration of the convention. The campaign upon which we are about to enter is of vital importance to the destinies of the American people more vital than any presidential election which has been held heretofore. The great question before us is, whether we will set aside the corrupt Administration which is leading the country on to ruin, every section of it, and give to our country an industry and prosperity beyond what the country has ever seen before. [Applause.] The question is, whether the iron heel of mal administration shall be upon this country, or whether the Demo cratic party may once more hold the reins of government and restore the country to union and prosperity. [Applause.] The Republican leaders, scheming, unscrupulous, and oppressive as ever, have by their speeches in Congress and the teachings of a partisan press, by their platforms in their State and National Conventions, tried to divide and divert the attention of the American people from their misdeeds ; and they appeal to the worst passions of the people, and endeavor to sow the seeds of discord between the North and the South this Centennial year of national rejoicing, when the hallowed memories of the past admonish us to draw close together in the strongest bonds of fraternity and union. We have seen the soldiers of South Carolina arm-in-arm with the soldiers of Massachusetts upon Bunker Hill. [Applause.] We have seen the veterans of New England adorn with flowers the graves of the Confederate soldiers : a tribute from the brave to the brave. [Cheers.] The politicians of the Administration party, bent only upon their own selfish ends, attempt to stir up the worst passions of human nature, and, not satisfied with the miseries of the day, are willing to leave our children an inheritance of suspicion, prejudice, and hatred. They have played the same nefarious game before, and, encouraged by the timorous policy of our leaders in former conventions, they hope to achieve another victory through our fears, which made us 312 THE LIFE OF SAMUEL J. TILDEN. resort to expedients and injudicious nominations outside of the Democratic party. Experience has shown the fallacy of such a policy, for every Republican vote which we gained, or hoped to gain, we lost the votes of thousands of our own people. But the lessons of the past serve as warnings at this juncture. This is a struggle between the Democracy, representing union, prog ress, and prosperity, and the Republicans, representing sectional strife, religious intolerance, and a continuation of financial and in dustrial prostration. In such a contest victory must be ours, if we adopt a strong and unequivocal platform on all of the cardinal ques tions which agitate the people, and place upon it a national Demo crat whose private character and public record will infuse that en thusiasm and that confidence into our ranks which alone can insure success. The Republicans have unce more unfurled the bloody shirt, that piratical flag with which they hope to capture the liberties of the people. Let us march against them under the broad banner of the Union, that flag which has .never known and will never know- defeat either from domestic or foreign foes. Mr. Chairman, I offer the following resolution, which, with the consent of this convention, I move be referred to the Committee on Resolutions : JResolved, That we appeal to the honor and manhood of the Amer ican people to begin this second century of American union and in dependence by trampling under foot, and extinguishing forevefc-, the smouldering ashes-of distrust, rancor, and animosity, between the* two great sections of our country. We denounce with indignation the calculating malignity with which the leaders of the Republican party have labored to keep alive, during eleven years of peace, the worst passions of civil war. The Machiavellian motto of the Republican party has been and is, "Divide the people and we shall rule tbem." For the Democratic party we reply, " Unite the people and make them free." We denounce the Republican party on this great issue as a party of false pretenses. It is a false pretense to assume the character of a national party, and at the same time to exist only by sec tional divisions. It is a false pretense to assume the name of Union party, and at the same time to be an obstacle to national unity. It is a false pretense to assume the name of Liberal party, and at the same time to appeal to the religious prejudices of the people. It is a false pretense to claim the title of a progressive party, and at the THE ST. LOUIS CONVENTION. 313 same time to turn the people back from peace and the future to war and the past. During this whole day of preliminaries, and the night which followed, the work of Governor Tilden s opponents went steadily on. Delegations were visited by committees of speakers, circulars and addresses were issued and scat tered about on every hand, combinations were sought with out success, arid no means was left untried to break his ranks. The point of assault, both for the Governor s friends and op ponents, was the South, whose delegations had come to the convention agreeing to forego all personal preferences for candidates, and to accept any man whom the Northern and Western States thought most likely to lead the Democratic party to victory and lift from the neck of the South the yoke of Grantism. The unanimity of the Southern Democrats in this resolve was remarkable. Ardent as their preferences were for certain candidates, they sternly refused to give way to them, and sought only to discover what was best for the party and the country. It was their evident sincerity and their evident determination to follow out their convictions that made both sides to this controversy for the discussion of nominations had in reality simmered down to a controversy over Tilden so hopeful of bringing them to their views. The representations of Governor Tilden s opponents, however, had little apparent effect. The Southern delegations had been largely of the opinion that Governor Tilden was the man for the time, and they seemed to be equally of that opin ion still. The morning of the second day opened bright with promise for the nomination of Governor Tilden, although his friends were by no means sure of an easy victory, and his opponents had not given up their hopes of successful strategy and combination. Meantime the financial question engaged the attention of the Committee on Resolutions. General Thomas Ewing, of Ohio, and Hon. Daniel W. Voorhees, of Indiana, distinguished 14 314 THE LIFE OF SAMUEL J. TILDEN. representatives of the greenback doctrine, were awarded places on that committee; and a determined attempt was evidently to be made, first in the committee, and then, if necessary, in the convention, to commit the party to their ideas. They pushed the question in the committee, which lasted nearly all night, and renewed it at the adjourned meet ing the next morning ; but on every vote which they pro posed they were beaten by an overwhelming majority. They therefore resolved to make their appeal to the convention. The convention met in the forenoon, but adjourned till two o clock, to give the Committee on Resolutions time to finish their work. At the hour of reassembling the great hall, from floor to gallery, was crowded. Judge Meredith, of Virginia, who had been elected chair man of the Committee on Platform, announced that the reso lutions would be read by Lieutenant-Governor Dorsheimer, who was received with cordial applause. His rendering of the platform was unique. Instead of the monotonous, busi ness-like tone into which platform-readers usually fall, Mr. Dorsheimer s voice was the voice of oratory, and his gestures the gestures of a giant. He read the platform with wonder ful effect, giving to it all the inflection and emphasis of a great oration. When he moved back from his place at the side of the president s desk, General Ewing stepped prompt ly forward, his classic face rigid with determination and paler than usual with excitement. When the cheers that greeted him had subsided, he read the following minority report : The undersigned members of the/ committee recommend that the following clause "in the resolutions reported by the committee be stricken out : " As such hinderance we denounce the resumption clause of the act of 1875, and we here demand its repeal." [Cheers.] And they recommend that there be substituted for that clause the following : u The law for the resumption of specie payments on the 1st of January, 1879, having been enacted by the Kepublican party without deliberation in Congress or discussion before the people, and THE ST. LOUIS CONVENTION. 315 being both ineffective to secure its objects and highly injurious to the business of the country, ought to be forthwith repealed." T. EWING, Ohio. II. H. TEIMBLE, Iowa. D. W. VOOEHEES, Indiana. J. J. DAVIS, West Virginia. J. 0. BEOWN, Tennessee. T. L. DAVIS, Kansas. MALCOLM HAY, Pennsylvania. E. H. HAEDIN, Missouri. General Ewing then explained the position of the minor ity as follows : I desire to briefly state the objection to the clause which we propose to have stricken out. It denounces only the clause of the specie-resumption law fixing the time for the resumption of specie payments, leaving the rest of the act to stand unobjected to, and, by implication, approving it. It objects to that clause because it is a hinderance to specie payment. The construction will be given; and with some degree of plausibility at least, that the Democratic party want resumption earlier than the date fixed. By inference the bal ance of the law is approved; and what does that committee say about it ? It commits us to issuing gold bonds to take up the cost less fractional currency. It commits us to the reduction of the legal- tender money by having bank-paper take its place, thus increasing the power of an already dangerous monopoly a monopoly that is thoroughly hated by the mass of the Democracy of this country. It commits us to the perpetuation of the national bank system, for if we have no objection to the iaw except the date of resumption we approve then the provisions for the raising up of two or three thou sand great monopolies to control the currency of this country in addition to the two thousand we already have. It leaves the Secre tary of the Treasury with perhaps the power to issue gold and lock it up idly in the Treasury, awaiting for the day of resumption, a policy to which the Democracy my friends of the West, I am sure are almost unanimously opposed. This law is purely a Republican measure, and the -sum of the financial villainies of the Republican party. At this point General Ewing was interrupted with cries of " Time j time ! " which completely drowned his voice. Mr. Williams, of Indiana, moved at once to extend the gen eral s time fifteen minutes, but this proposition was greeted 316 THE LIFE OF SAMUEL J. TILDEN. with cries of " No ! no ! " A scene of great confusion en sued. Mr. Collins, of Massachusetts, objected to the exten sion of time, but withdrew his objection when requested to do so by Lieutenant-Governor Dorsheimer, and when the re quest was seconded by Mr. Kernan, who said that General Kwing ought to be allowed further time, inasmuch as he rep resented a portion of the committee. But the courtesy was of no avail. The point was raised that under the rules of the convention the motion to suspend the rules could not be entertained, and a series of questions, objections, and appeals followed in the midst of so much earnest protest against ex tending the time and infringing upon the rules which the convention had adopted, that General Ewing finally declined to ask the further indulgence of the convention, and grace fully withdrew. Then came the pivotal point of the contest the most stirring scene of the convention. Lieutenant-Governor Dorsheimer stepped forward and faced the convention. He seemed to fit the place and the occasion, his bearing was so impressive, his form so colossal. He said : ME. CHAIRMAN AND GENTLEMEN OF THE CONVENTION : I do not propose to speak upon this matter at length. [He rose to his utmost height and his clarion-voice rang out all over the great hall.] I pro pose here to make a straight issue between soft money and hard money. [And with that a great burst of cheering went up that lasted several minutes]. By that we stand or we fall. [Again three cheers rose from the convention.] If you want soft money give your votes to the resolution offered by the most distinguished soft- money advocate in the United States. [Cheers and hisses.] -But if you want to leave to the hard-money men some chance to carry their States, then stand by the report of the committee [cheers], which was a compromise so great that a protest has been here signed by every one of the Eastern Democratic States, and to which I have put my own signature, [Cheers.] There is a middle ground which, does leave some hope. But if you declare, in the language of the gentle man from Ohio (General Ewing), for a repeal forthwith, then aban don all your hopes. [Cheers.] I make this issue fair. [A voice : THE ST. LOUIS CONVENTION. 317 " You will get enough of it! "] As I said, we will stand to that, and now, Mr. President, I demand a vote by the States. [Cheers, hisses, and applause.] Daniel W. Voorhees, of Indiana, was the next speaker. He made a skillful plea, but Mr. Dorsheimer s bold and hon est denunciation of the minority report had placed the issue nakedly before the convention in such a way that soph istry could not again disguise it. He said : The issue that is stated by the gentleman from New York is a false issue so far as this platform is concerned. There are issues raised here as between hard money and soft, so called. The platform to which the minority agree contains repeated stipulations that we are in favor at as early a period as practicable of specie payments. "We are all in favor of that. I am in favor of a resumption of specie payment as soon as the true and healthful interests of this country will permit. He who desires specie resumption at an earlier day than that desires it for some private and far from patriotic motive. Men of New York sitting here before you have at this moment de clared in favor of a resumption of specie payment on the 1st .day of January, 1879. We are two years farther from a gold basis to-day than we were when it was enacted. The Government currency is not as near unto a fair basis by two per cent, as it was before this miserable, bungling law was enacted upon the statute-books. I stand for a growth of the country to specie payments; I stand for that aid to specie payment which comes by a return of wealth and prosperity. "We can all remember a time when our paper was w^orth only forty cents on a dollar in gold. It had grown to be worth ninety cents before that law was passed. "When it has risen by the natural laws of trade, by laws of God s growth and prosperity, re turning to the country fifty cents on the dollar in the course of eight years, let us trust that the gap of only about ten or twelve per - cent. remaining will be closed up, by the same great laws, in a very short time in the future. My friends, something was said by the gentle man from New York about the effect in his State and other States. I stand here surrounded by ten States who have a right to be heard on this subject West Virginia, Ohio, my own grand Demo cratic State of Indiana ; Missouri, on whoso bosom we are holding this convention ; Tennessee, that contains the Hermitage and the 318 THE LIFE OF SAMUEL J. TILDEN. ashes of Jackson and Polk ; Iowa, and Kansas. Are they not to he considered ? Do they amount to nothing ? I will say, with all re spect to the gentleman from New York who has just sat down, that we have followed the lead of New York for twelve long years, and each time to disaster. And I for one assert the West, the mighty West, with its teeming population ; I assert the power of this Missis sippi Valley with its mighty interests and its great resources. At the close of Mr. Voorhees s speech Mr. Watterson spoke briefly, taking the ground that the convention had delegated the duty of preparing a platform to a committee, and com mon-sense dictated acquiescence in the work of a large ma jority of that committee. Another scene of great confusion ensued, many delegates asking to be heard, and one from Pennsylvania bitterly de nouncing the gag law, and insisting on the freedom of de bate. Mr. Abbett, of New Jersey, asked, a division of the ques tion. He was in favor of the motion to strike out, but was opposed to inserting what was proposed, for he was for hard money. The previous question was seconded. Mr. Doolittle made a few remarks amid much disorder, in which he said victory or death depended on the question now before the convention, and he desired to move an amendment to the pending amendment. Mr. Cox, of New York, demanded a vote by States on the main question, which, having been divided, was first stated on the motion to strike out. Mr. Doolittle moved to adjourn. Lost. An attempt was made to call the roll, but the disorder was so great that delegates could not hear enough to under stand the question. A Texas delegate moved to clear the galleries. As the chair did not put the question, he evidently did not under stand it. The excitement was long-continued, with increasing force and violence, a dozen gentlemen speaking at once. Pennsylvania retired for consultation. THE ST. LOUIS CONVENTION. 319 Mr. Burch, of Tennessee, wanted to know whether, if the vote to strike out should prevail, and the convention failed to insert the proposed substitute, the effect would be to leave the resumption act to stand as it is. The chair answered in the affirmative. Mr. Burch wanted to know then whether any parliamen tary legerdemain could then cheat the convention out of the opportunity to have a square vote on the minority report. After this excited discussion had somewhat subsided the roll-call of States was begun. Alabama gave 20 votes for the hard-money report, Arkansas gave 12, California gave 12, Colorado gave 6, Connecticut 12, Delaware 6, Florida 8, and Georgia 22. So far nearly a hundred votes had been cast for the hard-money report, and not one State had given a single vote against it. All the fears of the hard-money men, if there had been any, were swept away in a great, happy cheer. Illi nois was the first divided State, giving 18 votes for the amend ment and 22 against it. Indiana voted her 30 votes. solidly for the amendment, and so did Kentucky, which voted under a unit rule, and was in the hands of a greenback majority. Now came another line of hard-money States. Louisiana gave 16 votes against the amendment, Maine 14, Maryland 16, Massachusetts 26, Michigan 17, Minnesota 10, Mississippi 16, Nebraska 6, Nevada 6, New Hampshire 10, New Jersey 18, New York 70, and North Carolina 20. The vote of New York was greeted with a cheer that meant Tilden as well as hard money, and was as significant as it was hearty. The defeat of the amendment was already overwhelming, but it was not yet finished. Five of the Michigan votes had gone over to the minority, with 9 of the 30 cast by Missouri, but 18 of the 44 votes of Ohio were cast in General E wing s teeth for the majority report. Tennessee and West Virginia joined themselves to the amendment, but Wisconsin gave all her 20 votes the other way. Pennsylvania had retired for consultation and now returned, announcing through Senator Wallace, the chairman, that the whole vote of the delegation was to be given, under the unit rule, to the minority report. The cheering at 320 THE LIFE OF SAMUEL J. TILDEN. this juncture drowned the explanation that 23 of the 58 votes had been cast in the meeting of the delegation for the hard- money report. The announcement of the totals of the vote was awaited with eager interest, and when the clerks called out that 219 votes had been cast for the minority report, and 515 for the majority report, the convention cheered and cheered again, the galleries cheered, arid word ran down the crowded halls and stairways that the hard-money victory was complete and overwhelming. This ended all doubts as to the integrity of the platform or the ticket. " Hard money " had been inscribed upon the banners of the Democracy, and the one name that could best head the platform of hard money and thorough reform was on the lips of all. Tilden s nomina tion was now inevitable. Before the naming of candidates was begun, Mr. Doolittle moved to reconsider the vote by which the report was adopted, in order to incorporate a proposition which he read, in favor of silver as legal tender, as well as gold, and the restoration . of a double standard of gold and silver at a just and respec tive valuation. This was followed by his former proposition in favor of gradual resumption only. Mr. McLane, of Maryland, moved that the motion to re consider should be placed on the table, and, in the midst of calls for a vote by States, the chair announced it carried. Mr. Hutchings moved that the vote in favor of the plat form be made unanimous, and assigned his five minutes for debate to Mr. Cox, of New York, who, however, was inter rupted by calls of order, and amid great confusion was com pelled to take his seat unheard. The convention now proceeded to the work of nomination. First, the candidates were presented in response to a call of the States. Delaware named her truly favorite son, Thomas Francis Bayard, the worthy occupant of the senatorial chair filled by three Bayards before him. Ex-Congressman William G. Whitney presented his name in an eloquent speech. Mr. Williams, of Illinois, presented the name of Governor Thomas A. Hendricks, of Indiana. [Great applause.] He THE ST. LOUIS CONVENTION. 321 said there was no. fire in his rear. With him they would carry Indiana by 20,000 majority. Mr. Fuller, of Indiana, seconded Hendricks s nomination . eloquently and forcibly. Mr. Campbell, of Tennessee, by in struction of its convention, also seconded the nomination of Governor Hendricks, under- whose lead Tennessee felt more confident of success than under any other. Then there was an interesting little blunder. By an error of the printer, New York was printed on the roll of States before New Jersey, and the secretary, in running rapidly down the list, called New York almost without knowing it. But the convention caught at it on the instant, and broke out in prolonged cheering, waving of handkerchiefs and fans, and applause that could not be checked for a considerable interval. Then the convention sat down again, and had a quiet smile over its premature outbreak of enthusiasm. It had been New Jersey s turn all the time. This steadfast Democratic State presented the name of its war Governor, Joel Parker, who earned Lincoln s commendation for his services to the General Government, and who had his troops in Pennsylvania, when the territory of that State was invaded, within forty- eight hours after the call was made from Washington. State Senator Leon Abbett made a ringing speech in his favor. Then came New York. Francis Kernan, the Democratic Senator from the Empire State, came forward to speak ; and, as the convention recognized his stern Roman face, fringed with silver hair, there was a hearty cheer. He spoke admir ingly of the candidates who had been already named, while avowing his preference for the Governor of his own State. He said : The great issue upon which this election will be lost or won is that question of needed administrative reform; and, in selecting our candidates, if we had a man that had been so fortunate as to be placed in a public position, who ha.d laid his hand on dishonest officials, no matter to what party they belonged, or had rooted out abuses in the discharge of his duty, who had shown himself willing and able to bring down taxation and inaugurate reform, if we are wise men and 322 THE LIFE OF SAMUEL J. TILDEN. have such a man, it is no disparagement to any other candidate to say that this is the man that will command the confidence of men who have not been always with the Democracy, and make our claim strong, so that it will sweep all over this Union a triumphant party vote. Governor Tilden was selected as Governor of our State; he came into office January 1, 1875. The direct taxes collected from our tax-ridden people in the tax levy of 1874 were over $15,000,000. [Applause.] He has be.en in office eighteen months, and the tax levy for the State Treasury in this year, 1876, is only $8,000,000. [Cheers.] If you go among our farming people, among our men who find busi ness coming down and their produce bringing low prices, you will find that they have faith in the man who has reduced taxation, in the State of New York, one-half in eighteen months [applause] ; and you will hear .the honest men throughout the country say that they want the man who will do at Washington what has been done in the State of New York. [Cheers.] Now, do not misunderstand me. We have other worthy men and good in the State of New York who, if they had had the chance to be elected, and had had a chance to dis cover the frauds in our State administration, among our canals, which were thus depleting our people, would .have done the work faithfully. I doubt not but it so happened that Samuel J. Tilden that the great Democratic party of the State of New York reaped this great benefit for our people, and this great honor for our party, because they elected Samuel J. Tilden. John Kelly, of New York, next took the platform, but an attempt was made to hiss him down. [A delegate " There seem to be some geese in the hall." Cries of " Clear the galleries ! "] But with Kelly s first sentence complete order was restored until some one made a point that he was out of order unless he intended to second Mr. Tilden s nomination, when ensued a scene of confusion, with hisses and calls for " Kelly ! Kelly ! " Mr. Hut chins, of Missouri, insisted upon order. He ex- pe6ted to vote for Tilden, but Kelly was entitled to be heard. A delegate from Kansas demanded the " scotching of vipers who hiss." [Applause.] Mr. Kernan, of New York, urged the respectful hearing of Kelly, and finally cries for Kelly were overwhelming. THE ST. LOUIS CONVENTION. 323 Mr. Kelly finally proceeded, urging that the nomination of a Western candidate for President will secure Indiana and Ohio in October ; but, if they lose those States, then it would be impossible to save New York in November. Some one on the platform interrupting with a call for three cheers for Tilden, a delegate demanded that the ser- geant-at-arms proceed to eject him from his seat. Mr. Kelly persisted in his right to the floor until he had finished, despite efforts to interrupt him by calls of " Time ! " and the failure of the chair to enforce order. Mr. Tilden s nomination was seconded by Colonel Flour- ney, of Virginia, and ex-Congressman Herndon, of Texas, who promised Tilden a majority of 100,000. The other nomi nations followed in quick succession. General Ewing present ed the name of the farmer-statesman of Ohio, William Allen. Heister Clymer, of Pennsylvania, presented the gallant sol dier and law-respecting officer, General Winfield Scott Han cock ; and General Brente, of Louisiana, and Mr. Sexton, of Texas, seconded the nomination. Two delegates from Wisconsin -closed the list of speeches, George B. Smith pledging the electoral vote of that State to Tilden ; and ex- Senator Doolittle urging the nomination of Governor Hen- dricks, on the ground that New York could not be carried in November unless Indiana was carried in October, The first ballot began. Alabama led off with 13 of its 20 votes for Tilden. Arkansas and California threw their whole vote for Tilden. Colorado complimented Governor Hendricks for personal reasons. Florida was all for Tilden ; but Georgia, that had been counted on for a pretty large vote, gave him but 5. Illinois, too, showed a little failing, giving him but 19 votes. Kentucky gave him all her 24, and Louisiana 9. The five States that followed gave him 75 more votes, and his ex pected strength remained with him to the end of the list. It was not long before it was known that Tilden had more than 400 votes, and there was a wild cheer of delight. This was the first ballot: 324 THE LIFE QF SAMUEL J. TILDEN. STATES. 1 H aj 1 W Parker. t 1 1 New York 70 Massachusetts 26 Illinois 19 23 California . .... 12 Maine 14 Arkansas "12 Colorado 6 Connecticut 12 Alabama ... 13 5 2 Iowa 14 6 2 Indiana 30 Kansas 10 Georgia 5 1 16 Virginia 17 1 4 New Hampshire 10 West Virginia. ... 10 New Jersey 18 Texas 104 24 2 1 Vermont 10 South Carolina 14 Rhode Island 8 Missouri .... 2 7 2 19 AVisconsin .... 19 1 6 Ten nessee . . .... 24 Mississippi. . . 16 9 5 2 Oregon. 6 Ohio. . 44 Pennsylvania 58 10 Maryland 11 3 2 8 North Carolina 9 4 5 2 Kentucky 24 Nevada 3 3 Nebraska . 6 Michigan 14 8 Totals . . 403* 1334 77 18 31 56 19 Whole vote 713 Necessary for a choice. . . 476 For Governor Tilden 403 For Governor Hendricks. 133^ For Broadhead For General Hancock 75 For ex-Governor Allen 56 For Senator Bayard. ..... 27 For ex-Governor Parker ... 18 . 19 THE ST. LOUIS CONVENTION. 325 Before the vote was announced, however, the Tilden wave began already to run higher. Mr. Hutchins, of Missouri, asked if it was in order to change votes, and, on being informed that it was, changed 14 of the votes for Broadhead to 7 for Hendricks and 7 for Tilden. This was the first break, and all hope of defeating Tilden by a stampede to another candidate was gone. The second ballot was like the pouring of a flood. Ala bama cast all her 20 votes for Tilden, and Colorado gave him the 6 which Hendricks had received before. In Georgia he made a solid gain of 10, in Illinois of 4, in Iowa and Kansas of 2 each. The only question now was, whether he would be nominated on this or the following ballot. When the vote of Wisconsin had been cast, Tilden had 467 votes, 25 short of the requisite two-thirds. But the convention was in no mood for a third ballot. They were so anxious to nominate Tilden that they wanted to make sure of him at once . Iowa made her vote unanimous, giving him four more. Illinois gave 29, or two more than before. Finally, Missouri gave 20 votes, and then, almost before the change had been recorded, 28 votes for Tilden. At this the clamor and babel of thou sands of men on their feet, shouting, appealing to the chair, calling for order and for the vote, and a great many other things they could not get, btoke into one great triumphant roar of applause. By one of those flashes of intelligence that run like lightning through an excited crowd, the news had sped without words that Tilden was nominated. While the band was playing, the great gathering was shouting itself hoarse, men were leaping upon desks and chairs, and cheer ing again and again. The secretaries were seen to be calling out something they could not be heard. At last they held up two fingers Tilden needed two more votes. There were changes to Tilden and from him, but Delaware gave the two needed votes, and tl^e universal joy broke out again. The appended table gives the vote of each State on the second ballot : UNIVERSITY V OF 326 THE LIFE OF SAMUEL J. TILDEN. STATES. 1 Hendricks. Hancock. Parker. Thurman. ! n d S <1 Texas 16 Michigan 19 3 18 New York 70 North Carolina 20 Ohio 44 6 Pennsylvania 58 Khode Island . . 8 Illinois 26 16 Indiana 80 Iowa 20 2 Kansas . . . 2 " 8 Kentucky t 94 Louisiana 16 Maine 14 Maryland . . . 14 2 Massachusetts 26 Minnesota . 10 Mississippi 16 Missouri 30 Nebraska . 6 Nevada 4 2 New Hampshire 10 Alabama 20 Arkansas. . i ........ 12 California 12 Colorado 6 Connecticut 12 Delaware 6 Florida 8 Georgia 15 7 South Carolina 14 Tennessee 9,4 Vermont 10 Virginia . 17 1 4 West Virginia 10 ^Vlsconsin . . 19 1 Totals . . 508 75 60 18 2 11 54 Other changes followed, and the vote which made Samuel J. Tilden the choice of the Democratic- National Convention was finally announced as follows : THE ST. LOUIS CONVENTION. 327 Whole vote 738 Necessary for a choice.. . 492 For Thden 535 For Hendricks.*. 60 For Allen 54 For Parker 18 For Hancock 59 For Bayard 11 For Thurman 2 Pennsylvania moved to make the nomination unanimous, and, Indiana seconding the motion, this was done. It was now twenty minutes past eight o clock, and the convention adjourned until the next morning, the delegates passing out slowly to exchange joyful congratulations, and meeting out side the enthusiastic demonstrations of the people. The session of the convention the next day was brief. Various names had been thought of as candidates for the office of Vice-President, among them those of Henry B. Payne, of Ohio, and William R. Morrison, of Illinois, chairman of the Committee on Ways and Means of the House. The senti ment, however, was so overwhelming in favor of the nomina tion of Governor Hendricks that his nomination was soon seen to be inevitable. He received 730 out of 738 votes on the first and only ballot, and his nomination was made unani mous amid the greatest enthusiasm. It was known that he was unwilling to take the place, and the Indiana delegation, through its spokesmen, expressly disavowed all responsibility in connection with the nomination ; but it was believed that Governor Hendricks could not and would not disregard the unanimous wish of the party so enthusiastically expressed. In that belief he was chosen without a voice of dissent. The last act of importance was the passage by the con vention of a resolution directing that conventions be requested to instruct delegates to the next National Convention as to the propriety of abolishing the two-thirds rule. Thus closed the National Democratic Convention of 1876. It had nominated its ablest candidate and most successful re former; it had placed him on a platform which demanded a revolution of reform, and it had settled the vexed financial question amicably, and therefore satisfactorily. Its work was well done. 328 THE LIFE OF SAMUEL J. TILDEN. THE PLATFORM. KEFOKM A PATEIOTIO DUTY. We, tlie delegates of the Democratic party of the United States in National Convention assembled, do hereby declare the administration of the Federal Government to be in urgent need of immediate reform ; do hereby enjoin upon the nomi nees of this convention, and of the Democratic party in each State, a zealous effort and cooperation to this end ; and do hereby appeal to our fellow-citizens, of every former political connection, to undertake with us. this first and most pressing patriotic duty. THE UNION AND CONSTITUTION. For the Democracy of the whole country, we do hereby reaffirm our faith in the permanence of the Federal Union, our devotion to the Constitution of the United States with its amendments universally accepted as a final settlement of the controversies that engendered civil war, and do here record our steadfast confidence in the perpetuity of republican self- government. MOEAL PEODUCTS OF A HUNDEED TEAES. In absolute acquiescence in the will of the majority the vital principle of republics ; In the supremacy of the civil over the military authority ; In the total separation of Church and State, for the sake alike of civil and religious freedom ; In the equality of all citizens before just laws of their own enactment ; In the liberty of individual conduct, unvexed by sumptu ary laws ; In the faithful education of the rising generation, that THE ST. LOUIS CONVENTION. 329 they may preserve, enjoy, and transmit these best conditions of human happiness and hope We behold the noblest products of a hundred years of changeful history. But, while upholding the bond of our Union and great charter of these our best rights, it behooves a free people to practise also that eternal vigilance which is the price of liberty. MISKTTLE AND HAED TIMES. Reform is necessary to rebuild and establish, in the hearts of the whole people, the Union, eleven years ago happily rescued from the danger of a secession of States ; but now to be saved from a corrupt centralism which, after inflicting upon ten States the rapacity of carpet-bag tyrannies, has honey-combed the offices of the Federal Government itself with incapacity, waste, and fraud ; infected States and mu nicipalities with the contagion of misrule, and locked fast the prosperity of an industrious people in the paralysis of " hard times." HAED MONEY. Reform is necessary to establish a sound currency, restore the public credit, and maintain the national honor. We denounce the failure of all these eleven years of peace to make good the promise of the legal-tender notes, which are a changing standard of value in the hands of the people, and the non-payment of which is a disregard of the plighted faith of the nation. We denounce the improvidence which, in eleven years of peace, has taken from the people, in Federal taxes, thirteen times the whole amount of the legal-tender notes, and squan dered four times their sum in useless expense, without accu mulating any reserve for their redemption. EETEENCHMENT AND EESUMPTION. We denounce the financial imbecility and immorality of that party which, during eleven years of peace, has made no 330 THE LIFE OF SAMUEL J. TILDEN. advance toward resumption, no preparation for resumption, but instead has obstructed resumption, by wasting our re sources and exhausting all our surplus income ; and, while annually professing to intend a speedy return to specie pay ments, has annually enacted fresh hinderances thereto. As such a hinderance we denounce the resumption clause of the act of 1875, and demand its repeal. We demand a judicious system of preparation by public economies, by official retrenchments, and by wise finance, which shall enable the nation soon to assure the whole world of its perfect ability and its perfect readiness to meet any of its promises at the call of the creditor entitled to pay ment. We believe such a system, well devised, and, above all* intrusted to competent hands for execution, creating at no time an artificial scarcity of currency, and at no time alarm ing the public mind into a withdrawal of that vaster machinery of credit by which ninety-five per cent, of all business trans actions are performed a system open, public, and inspiring general confidence, would from the day of its adoption bring healing on its wings to all our harassed industries, set in mo tion the wheels of commerce, manufactures, and the mechanic arts, restore employment to labor, and renew in all its natural sources the prosperity of the people. BEFOEM IN FEDEEAL TAXATION. JReform is necessary in the sum and modes of Federal taxation, to the end that capital may be set free from dis trust, and labor lightly burdened. We denounce the present tariff, levied upon nearly four thousand articles, as a masterpiece of injustice, inequality, and false pretense. It yields a dwindling, not a yearly rising revenue. It has impoverished many industries to subsidize a few. It prohibits imports that might purchase the produce of American labor. THE ST. LOUIS CONVENTION. 331 It has degraded American commerce from the first to an inferior rank on the high-seas. It has cut down the sales of American manufactures at home and abroad, and depleted the returns of American agri culture an industry followed by half our people. It costs the people five times more than it produces to the Treasury, obstructs the processes of production, and wastes the fruits of labor. It promotes fraud, fosters smuggling, enriches dishonest officials, and bankrupts honest merchants. We demand that all custom-house taxation shall be only for revenue. KEFOEM IN PUBLIC EXPENSES. Reform is necessary in the scale of public expense Fed eral, State, and municipal. Our Federal taxation has swollen from 60 millions gold, in 1860, to 450 millions currency in 1870 ; our aggregate taxation from 154 millions gold in 1860, to 730 millions currency in 1870 ; or, in one decade, from less than $5 per head to more than $18 per head. Since the peace, the people have paid to their tax-gatherers more than thrice the sum of the national debt, and more than twice that sum for the Federal Government alone. We demand a rigorous frugality in every department, and from every officer of the Government. THE PEOFLIGATE WASTE OF PUBLIC LANDS. Reform is necessary to put a stop to the profligate waste of public lands and their diversion from actual settlers by the party in power, which has squandered 200 millions of acres upon railroads alone, and out of more than thrice that aggre gate has disposed of less than a sixth directly to tillers of the soil. THE SHIELD OF AMERICAN CITIZENSHIP. Reform is necessary to correct the omissions of a Republi can Congress, and the errors of our treaties and our diplomacy 332 THE LIFE OF SAMUEL J. TILDEN. which have stripped our fellow-citizens of foreign birth and kindred race, recrossing the Atlantic, of the shield of Ameri can citizenship, and have exposed our brethren of the Pacific coast to the incursions of a race not sprung from the same great parent stock, and in fact now by law denied citizenship through naturalization as being neither accustomed to the traditions of a progressive civilization nor exercised in liberty under equal laws. We denounce the policy which thus discards the liberty- loving German and tolerates the revival of the coolie trade in Mongolian women imported for immoral purposes, and Mon golian men hired to perform servile-labor contracts, and de mand such a modification of the treaty with the Chinese empire, or such legislation by Congress within constitutional limitations, as shall prevent the further importation or immi gration of the Mongolian race. SECTARIAN STRIFE AND SECTIONAL HATE. Reform is necessary and can never be effected but by making it the controlling issue of the elections, and lifting it above the two false issues with which the office-holding class and the party in power s-eek to smother it 1. The false issue with which they would enkindle sec tarian strife in respect to the public schools, of which the es tablishment and support belong exclusively to the several States, and which the Democratic party has cherished from their foundation, and is resolved to maintain without preju dice or preference for any class, sect, or creed, and without contributions from the Treasury to any. 2. The false issue by which they seek to light anew the dying embers of hate between kindred peoples once estranged, but now reunited in one indivisible republic and a common destiny. CIVIL SERVICE. Reform is necessary in the civil service. Experience proves that efficient, economical conduct of the governmental THE ST. LOUIS CONVENTION. 333 business is not possible if its civil service be subject to change at every election, be a prize fought for at the ballot-box, be a brief reward of party zeal, instead of posts of honor assigned for proved competency, and held for fidelity in the public employ ; that the dispensing of patronage should neither be a tax upon the time of all our public men, nor the instrument of their ambition. Here, again, promises falsified in the per formance attest that the party in power can work out no practical or salutary reform. OFFICIAL CRIMES AND MISDEMEANOKS. Reform is necessary even more in the higher grades of the public service. President, Vice-President,. Judges, Sena tors, Representatives, cabinet officers, these and all others in authority are the people s servants. Their offices are not a private perquisite ; they are a public trust. When the annals of this republic show the disgrace and censure of a Vice-President ; A late Speaker of the House of Representatives marketing his rulings as a presiding officer ; Three Senators profiting secretly by their votes as law makers ; Five chairmen of the leading committees of the late House of Representatives exposed in jobbery ; A late Secretary of the Treasury forcing balances in the public accounts ; A late Attorney-General misappropriating public funds ; A Secretary of the Navy enriched or enriching friends, by percentages levied off the profits of contracts with his depart ment ; An embassador to England censured in a dishonorable speculation ; The President s private secretary barely escaping con viction upon trial for guilty complicity in frauds upon the revenue ; . 334 THE LIFE OF SAMUEL J. TILDEN. A Secretary of War impeached for high crimes and mis demeanors The demonstration is complete, that the first step in reform must be the people s choice of honest men from another party, lest the disease of one political organization infect the body politic, and lest by making no change of men or parties we get no change of measures and no real reform. REPUBLICAN EEFOBM IMPOSSIBLE. All these abuses, wrongs, and crimes, the product of six teen years ascendency of the Republican party, create a necessity for reform confessed by the Republicans themselves ; but their reformers are voted down in convention and dis placed from the cabinet. The party s mass of honest voters is powerless to resist the eighty thousand office-holders, its leaders and guides. A CIVIC EEVOLUTION NECESSAEY. Reform can only be had by a peaceful civic revolution. We demand a change of system, a change of Administra tion, a change of parties, that we may have A CHANGE OF MEASUEES AND OF MEN. CHAPTER XXIV. SPEECH OF ACCEPTANCE. ON the evening of the llth of July, the committee ap pointed by the Democratic National Convention waited upon Governor Tilden, at his residence in New York City, to officially inform him of his nomination. General McClernand addressed the Governor, and outlined the work of the con vention. He said : It was august in character, patriotic in sentiment, and met at a time when the civil authority was exposed to fresh encroachments from the military ; when hard money was dishonored and virtually banished from circulation by vicious legislation ; when peculation and corruption were sapping the foundations of the Government. The convention determined to save the country, and chose for stand ard-bearers tried, true, and trusted rnen. General McClernand then read the address of the com mittee, conveying official information of the nomination of Governor Tilden, as follows : ADDKESS OF THE COMMITTEE. NEW YORK CITY, July 11, 1876. Governor SAMUEL J. TILDEN. SIK : The undersigned, a committee of the National Democratic Convention, which met at the city of St. Louis,. Missouri, on the 27th ultimo, consisting of its president and of one delegate from each State of the Federal Union, have been intrusted with the pleasant duty of waiting upon and informing you of your nomination .by that body as the candidate of the Democratic party for the presidency of the United States at the ensuing election. It is a source of great satisfaction to us, who but reflect the opin- 336 THE LIFE OF SAMUEL J. TILDEN. ions of the members of the convention, that a gentleman entertaining and boldly advancing as you do, and have done, those great measures of national and State reform which are an absolute necessity for the restoration of the national honor, prosperity, and credit, should have been selected as our standard-bearer in the approaching contest. Your name is identified with the all-absorbing question of reform, reduction of taxes, and the maintenance of the rights of the laboring masses. The Democracy, in designating you as their chosen leader, do not feel that they are relying merely upon your pledges or prom ises of what you will do in the event of your election ; your record of the past is our guarantee of your future course. " Having been faithful over a few things, we will make you a ruler over many things." Accompanying this letter of notification, we also present you with the declaration of principles adopted by the convention. We have no doubt that you will recognize in this declaration measures of po litical policy which immediately concern the happiness and welfare of the entire people of this country, and we feel that your election to the presidency will be a guarantee of their success, and it will be as much your pleasure to enforce and maintain them, if elected, as it is ours to give them the stamp of national representative approbation and approval in their adoption. Entertaining the hope that you will signify to us your acceptance of the nomination which we have ten dered you, and that you concur with the convention in their declara tion of principle, we are, dear sir, your very obedient servants, Signed by JOHN A. McCLEENAND, Chairman, and all the members of the National Committee. General McClernand was followed by Hon. W. B. Hanna, of Indiana, who spoke eloquently in behalf of the Demo cratic party of his State, pledging the united, entire, and hearty support of Indiana to Tilden and Hendricks. GOVEENOR TILDEN S EEPLY. The following reply was then made by Governor Tilden : GENERAL MCCLEBNAND AND GENTLEMEN -OF THE COMMITTEE : I shall, at my earliest convenience, prepare and transmit to you a for mal acceptance of the nomination which you now tender to me in SPEECH OF ACCEPTANCE. 337 behalf of the Democratic National Convention, and I do not desire on this occasion to anticipate any topic which might he appropriate to that communication. It may, however, be permitted to me to say that my nomination was not a mere personal preference between citi zens and statesmen of this republic who might very well have been chosen for so distinguished an honor, and for so august a duty. It was rather a~ declaration of that august body, in whose behalf you speak, in favor of administrative reform, with which events had associated me in the public mind. The strength, the universality, and the efficiency of the demand for administrative reform in all gov ernments, and especially in the administration of the Federal Govern ment, with which the Democratic masses everywhere we re instinct, have led to a series of surprises in the popular assemblages, and per haps in the convention itself. It would be unnatural, gentlemen, if a popular movement, so genuine and so powerful, should stop with three million five hundred thousand Democrats ; that it should not extend by contagion to that large mass of independent voters who stand between parties in our country, and even to a moderate portion of the party under whose administration the evils to be corrected have grown up. And, perhaps, in what we have witnessed there may be an augury in respect to what we may witness in the election about to take place throughout our country; at least let us hope so and believe so. I am not without experience of the difficulty and the labor of effecting administrative reform when it requires a revolution in policies and in measures long established in government. If I were to judge in the year and a half in which I have been in the State government, I should say that the routine duties of the trust I have had imposed on me are a small burden compared with that created by the attempt to change the policy of the government of which I have been the Executive head. Especially is this so where the reform is to be worked out with more or less of the cooperation of public officers, who either have been tainted with the evils to be redressed, or who have been incapacitated by habit, or toleration of the wrongs to be corrected, to which they have been consenting witnesses. I, there fore, if your choice should be ratified by the people at the election, should enter upon the great duties which would fall upon me not as a holiday recreation, but very much in that spirit of consecration in which the soldier enters battle. [Applause.] But let us believe, as I do believe, that we now see the dawn of a better day for our country, and that, difficult as is the work to which the Democratic 15 338 THE LIFE OF SAMUEL J. TILDEN. party, with many of the ajlies and former members of other parties, has addressed itself, the republic is yet to be renovated, to live in all the future, and to be transmitted to future generations, as Jefferson contributed to form it in his day, and which it has been ever since, until a recent period, a blessing to the whole people. [Applause.] Gentlemen, I thank you for the very kind terms in which you have made your communication, and I extend to you collectively and indi vidually a most cordial greeting. This brief speech of Governor Tilden produced a marked effect upon the minds of very many who read it. It was so earnest, and even solemn in its tone, and yet so full of faith and high hope, that it was read and reread all over the coun try. But in these swift times it is demanded that one event shall follow another with rapidity. After the speech was digested, Governor Tilden s letter of acceptance was called for. He took his time in responding to this call. More than a month elapsed after the convention adjourned before the letter appeared. But when it appeared its perusal rewarded those who had waited. It is submitted without comment in the following chapter. CHAPTER XXV. GOVERNOR TILDEN S LETTER OF ACCEPTANCE. ALBANY, July 31, 1876. GENTLEMEN : When I had the honor to receive a personal delivery of your letter on behalf of the Democratic National Convention, held on the 28th of June at St. Louis, advising me of my nomination as the candidate of the constituency represented by that body for the office of President of the United States, I answered that at my earliest convenience, and in conformity with usage, I would prepare and transmit to you a formal acceptance. I now avail myself of the first interval in unavoidable occupations to fulfill that engage ment. The convention, before making its nominations, adopted a declaration of principles, which, as a whole, seems to me a wise exposition of the necessities of our country, and of the reforms needed to bring back the Government to its true functions, to restore purity of administration, and to renew the prosperity of the people. But some of these reforms are so urgent that they claim more than a passing approval. The necessity of a reform " in the scale of public expense Federal, State, and municipal " and " in the modes of Federal taxation," justifies all the prominence given to it in the declaration of the St. Louis Convention. NATIONAL EXPENSES TOO GKEAT. The present depression in all the business and industries of the people, which is depriving labor of its employment and carrying want into so many homes, has its principal cause in excessive governmental consumption. Under the illusions of 340 THE LIFE OF SAMUEL J. TILDEN. a specious prosperity engendered by the false policies of the Federal Government, a waste of capital has been going on ever since the peace of 1865, which could only end in uni versal disaster. The Federal taxes of the last eleven years reach the gigantic sum of $4,500,000,000. Local taxation has amounted to two-thirds as much more. The vast aggregate is not less than $7,500,000,000. This enormous taxation fol lowed a civil conflict that had greatly impaired our aggregate wealth, and had made a prompt reduction of expenses indis pensable. It was aggravated by most unscientific and ill-adjusted methods of taxation that increased the sacrifices of the people far beyond the receipts of the Treasury. It was aggravated, moreover, by a financial policy which tended to diminish the energy, skill, and economy of production, and the frugality of private consumption, and induced miscalculation in business, and an unremunerative use of capital and labor. Even in prosperous times the daily wants of industrious communities press closely upon their daily earnings. The margin of possible national savings is at best a small percent age of national earnings. Yet now for these eleven years governmental consumption has been a larger portion of the national earnings than the whole people can possibly save even in prosperous times for all new investments. The consequences of these errors are now a present public calamity. But they were never doubtful, never invisible. They were necessary and inevitable, and were foreseen and depicted when the waves of that fictitious prosperity ran highest. In a speech made by me on the 24th of September, 1868, it was said of these taxes : " They bear heavily upon every man s income, upon every industry and every business in the country, and year by year they are destined to press still more heavily, unless we arrest the system that gives rise to them. It was comparatively easy when values were doubling under repeated issues of legal- tender paper-money, to pay out of the froth of our growing and apparent wealth these taxes, but when values recede and GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 341 sink toward their natural scale, the tax-gatherer takes from us not only our income, not only our profits, but also a portion of our capital. ... I do not wish to exaggerate or alarm ; I simply say that we cannot afford the costly and ruinous policy of the radical majority of Congress. We cannot afford that policy toward the South. We cannot afford the magnificent and oppressive centralism into which our Government is being converted. We cannot afford the present magnificent scale of taxation." To the Secretary of the Treasury I said early in 1865 : " There is no royal road for a government more than for an individual or a corporation. What you want to do now is to cut down your expenses and live within your income. I would give all the legerdemain of finance and financeering, I would give the whole of it for the old, homely maxim, Live within your income. : EEFOEM IN APPEOPEIATIOXS. This reform will be resisted at every step, but it must be pressed persistently. We see to-day the immediate represent atives of the people in one branch of Congress, while strug gling to reduce expenditures, compelled to confront the men ace of the Senate and the Executive, that, unless the objec tionable appropriations be consented to, the operations of the Government thereunder shall suffer detriment or cease. In my judgment, an amendment of the Constitution ought to be devised separating in distinct bills the appropriations for the various departments of the public service, and excluding from each bill all appropriations for other objects, and all inde pendent legislation. In that way alone can the revisory power of each of the two Houses and of the Executive be preserved and exempted from the moral duress which often compels assent to objectionable appropriations rather than stop the wheels of the Government. MISGOVEENMENT IN THE SOUTH. An accessory cause enhancing the distress in business is to be found in the systematic and insupportable misgovern- 342 THE LIFE OF SAMUEL J. TILDEN. ment imposed on the States of the South. Besides the ordi nary effects of ignorant and dishonest administration, it has inflicted upon them enormous issues of fraudulent bonds, the scanty avails of which were wasted or stolen, and the exist ence of which is a public discredit, tending to bankruptcy or repudiation. Taxes, generally oppressive, in some instances have confiscated the entire income of property, and totally destroyed its marketable value. It is impossible that these evils should not react upon the prosperity of the whole country. The nobler motives of humanity concur with the material interests of all in requiring that every obstacle be removed to a complete and durable reconciliation between kindred popu lations once unnaturally estranged, on the basis recognized by the St. Louis platform, of the " Constitution of the United States, with its amendments universally accepted as a final settlement of the controversies which engendered civil war." But, in aid of a result so beneficent, the moral influence of every good citizen, as well as every governmental authori ty, ought to be exerted, not alone to maintain their just equality before the law, but likewise to establish a cordial fraternity and good-will among citizens, whatever their race or color, who are now united in the one destiny of a common self-government. If the duty shall be assigned to me, I should not fail to exercise the powers with which the laws and the Constitution of our country clothe its chief magistrate to protect all its citizens, whatever their former condition in every political and personal right. SPECIE PAYMENTS. " Reform is necessary," declares the St. Louis Convention, " to establish a sound currency, restore the public credit, and maintain the national honor ; " and it goes on to " demand a judicious system of preparation by public economies, by official retrenchments, and by wise finance, which will enable the na tion soon to assure the whole world of its perfect ability and GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 343 its perfect readiness to meet any of its promises at the call of the creditor entitled to payment." The object demanded by the convention is a resumption of specie payments on the legal-tender notes of the United States. That would not only " restore the public credit " and "maintain the national honor," but it would " establish a sound currency " for the people. The methods by which this object is to be pursued and the means by which it is to be attained are disclosed by what the convention demanded for the future and by what it denounced in the past. BANK-NOTE EESUMPTION. Resumption of specie payments by the Government of the United States on its legal-tender notes would establish specie payments by all the banks on all their notes. The official statement, made on the 12th of May, shows that the amount of the bank-notes was $300,000,000, less $20,000,000 held by themselves. Against these $280,000,000 of notes the banks held $141,000,000 of legal-tender notes, or a little more than fifty per cent, of their amount. But they also held on de posit in the Federal Treasury, as security for these notes, bonds of the United States worth in gold about $360,000,000, available and current in all the foreign money-markets. In resuming, the banks, even if it were possible for all their notes to be presented for payment, would have $500,000,000 of specie funds to pay $280,000,000 of notes, without con tracting their loans to their customers, or calling on any pri vate debtor for payment. Suspended banks undertaking to resume have usually been obliged to collect from needy bor rowers the means to redeem excessive issues, and to provide reserves. A vague idea of distress is, therefore, often asso ciated with the process of resumption. But the conditions which caused distress in those former instances do not now exist. The Government has only to make good its own promises, and the banks can take care of themselves without distressing anybody. The Government is, therefore, the sole delinquent. 344 THE LIFE OF SAMUEL J. TILDEN. LEGAL-TENDEB EESUMPTION. The amount of legal-tender notes of the United States now outstanding is less than $370,000,000, besides $34,000,000 of fractional currency. How shall the Government make these notes at all times as good as specie ? It has to provide, in reference to the mass which would be kept in use by the wants of business, a central reservoir of coin, adequate to the adjustment of the temporary fluctuations of international bal ances, and as a guarantee against transient drains artificially created by panic or by speculation. It has also to provide for the payment in coin of such fractional currency as may be presented for redemption, and such inconsiderable portions of the legal tenders as individuals may, from time to time, desire to convert for special use, or in order to lay by in coin their little stores of money. KESUMPTION NOT DIFFICULT. To make the coin in the Treasury available for the objects of this reserve, to gradually strengthen and enlarge that re serve, and to provide for such other exceptional demands for coin as may arise, does not seem to me a work of difficulty. If wisely planned and discreetly pursued, it ought not to cost any sacrifice to the business of the country. It should tend, on the contrary, to a revival of hope and confidence. The coin in the Treasury on the 30th of June, including what is held against coin certificates, amounted to nearly $74,000,000. The current of precious metals which has flowed out of our country for the eleven years from July 1, 1865, to June 30, 1876, averaging nearly $76,000,000 a year, was $832,000,000 in the whole period, of which $617,000,000 was the product of our own mines. To amass the requisite quantitj 7 , by inter cepting from the current flowing out of the country, and by acquiring from the stocks which exist abroad without disturb ing the equilibrium of foreign money-markets, is a result to be easily worked out by practical knowledge and judgment. GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 345 With respect to whatever surplus of legal tenders the wants of business may fail to keep in use, and which, in order to save interest, will be returned for redemption, they can either be paid or they can be funded. Whether they continue as currency, or be absorbed into the vast mass of securities held as investments, is merely a question of the rate of inter est they draw. Even if they were to remain in their present form, and the Government were to agree to pay on them a rate of interest making them desirable as investments, they would cease to circulate and take their place with Govern ment, State, municipal, and other corporate and private bonds, of which thousands of millions exist among us. In the per fect ease with which they can be changed from currency into investments lies the only danger to be guarded against in the adoption of general measures intended to remove a clearly- ascertained surplus, that is, the withdrawal of any which are not a permanent excess beyond the wants of business. Even more mischievous would be any measure which af fects the public imagination with the fear of an apprehended scarcity. In a community where credit is so much used, fluc tuations of values and vicissitudes in business are largely caused by the temporary beliefs of men even before those be liefs can conform to ascertained realities. THE WANTS OF TEADE. The amount of the necessary currency, at a given time, cannot be determined arbitrarily, and should not be assumed on conjecture. The amount is subject to both permanent and temporary changes. An enlargement of it, which seemed to be durable, happened at the beginning of the civil war by a substituted use of currency in place of individual credits. It varies with certain states of business. It fluctuates, with con siderable regularity, at different seasons of the year. In the autumn, for instance, when buyers of grain and other agricult ural products begin their operations, they usually need to borrow capital or circulating credits by which to make their 346 THE LIFE OF SAMUEL J. TILDEN. purchases, and want these funds in currency capable of being distributed in small sums among numerous sellers. The addi tional need of currency at such times is five or more per cent, of the whole volume, and, if a surplus beyond what is required for ordinary use does not happen to have been on hand at the money centres, a scarcity of currency ensues, and also .a strin gency in the loan-market. It was in reference to such experiences that, in a discus sion of this subject, in my annual message to the New York Legislature of January 5, 1875, the suggestion was made that " The Federal Government is bound to redeem every por tion of its issues which the public do not wish to use. Hav ing assumed to monopolize the supply of currency and enact ed exclusions against everybody else, it is bound to furnish all which the wants of business require. . . . The system should passively allow the volume of circulating credits to ebb and flow, according to the ever-changing wants of business. It should imitate, as closely as possible, the natural laws of trade, which it has superseded by artificial contrivances." And in a similar discussion in my message of January 4, 1876, it was said that resumption should be effected "by such measures as would keep the aggregate amount of the currency self-adjusting during all the process, without creating at any time an artificial scarcity, and without exciting the public imagination with alarms which impair confidence, contract the whole large machinery of credit, and disturb the natural op erations of business." THE EOAD TO EESUMPTION. " Public economies, official retrenchments, and wise fi nance " are the means which the St. Louis Convention indi cates as provision for reserves and redemptions. The best resource is a reduction of the expenses of the Government below its income, for that imposes no new charge on the peo ple. If, however, the improvidence and waste which have conducted us to a period of falling revenues oblige us to sup- GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 347 plement the results of economies and retrenchments by some resorts to loans, we should not hesitate. The Government ought not to speculate on its own dishonor, in order to save interest on its broken promises, which it still compels private dealers to accept at a fictitious par. The highest national honor is not only right, but would prove profitable. Of the public debt, $985,000,000 bear interest at six percent, in gold, and $712,000,000 at five per cent, in gold. The average inter est is 5.58 per cent. A financial policy which should secure the highest credit, wisely availed of, ought gradually to obtain a reduction of one per cent, in the interest on most of the loans. A saving of one per cent, on the average would be $17,000,000 a year in gold. That saving regularly invested at four and a half per cent, would, in less than thirty-eight years, extinguish the principal. The whole $1,700,000,000 of funded debt might be paid by this saving alone, without cost to the people. The proper time for resumption is the time when wise preparations shall have ripened into a perfect ability to ac complish the object with a certainty and ease that will inspire confidence, and encourage the reviving of business. The earliest time in which such a result can be brought about is the best. Even when the preparations shall have been ma tured, the exact date would have to be chosen with reference to the then existing state of trade and credit operations in our own country, the course of foreign commerce, and the condition of the exchanges with other nations. The specific measures and the actual date are matters of detail having reference to ever-changing conditions. They belong to the domain of practical administrative statesmanship. The cap tain of a steamer about starting from New York to Liverpool does not assemble a council over his ocean-chart and fix an angle by which to lash the rudder for the whole voyage. A human intelligence must be at the helm to discern the shift ing forces of the waters and the winds. A human hand must be on the helm to feel the elements day by day, and guide to o, mastery over them. 348 THE LIFE OF SAMUEL J. TILDEN. Such preparations are everything. Without them, a leg islative command fixing a day, an official promise fixing a day, are shams. They are worse, they are a snare and a delusion to all who trust them. They destroy all confidence among thoughtful men whose judgment will at last sway public opinion. An attempt to act on such a command or such a promise, without preparation, would end in a new suspension. It would be a fresh calamity, prolific of confusion, distrust and distress. THE ACT OF 1875 A BAEEEN PEOMISE. The act of Congress of the 14th of January, 1875, enact ed that on and after the 1st of January, 1879, the Secretary of the Treasury shall redeem in coin the legal-tender notes of the United States on presentation at the office of the Assistant Treasurer in the city of New York. It authorized the Secretary " to prepare and provide for " such resumption of specie payments by the use of any surplus revenues not otherwise appropriated ; and by issuing, in his discretion, certain classes of bonds. More than one and a half of the four years has passed. Congress and the President have continued ever since to unite in acts which have legislated out of existence every possible surplus applicable to this purpose. The coin in the Treasury claimed to belong to the Government had, on the 30th of June, fallen to less than $45,000,000, against $59,000,000 on the 1st of January, 1875, and the availability of a part of that sum is said to be questionable. The revenues are falling faster than appropriations and expenditures are reduced, leaving the Treasury with diminishing resources. The Secretary has done nothing under his power to issue bonds. The legislative command, the official promise fixing a day for resumption have thus far been barren. No practical preparations toward resumption have been made. There has been no progress. There have been steps backward. There is no necromancy in the operations of government. The GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 349 homely maxims of every-day life are the best standards of its conduct. A debtor who should promise to pay a loan out of a surplus income, yet be seen every day spending all he could lay his hands on in riotous living, would lose all char acter for honesty and veracity. His offer of a new promise or his profession as to the value of the old promise would alike provoke derision. The St. Louis platform denounces the failure for eleven years to make good the promise of the legal-tender notes. It denounces the omission to accumulate " any reserve for their redemption." It denounces the conduct " which, dur ing eleven years of peace, has made no advances toward re sumption, no preparations for resumption, but instead has obstructed resumption by wasting our resources and exhaust ing all our surplus income ; and, while professing to intend a speedy return to specie payments, has annually enacted fresh hinderances thereto." And, having first denounced the bar renness of the promise of a day of resumption, it next de nounces that barren promise as "a hinderance " to resump tion. It then demands its repeal, and also demands the establishment of " a judicious system of preparation " for resumption. It cannot be doubted that the substitution of " a system of preparation " without the promise of a day, for the worthless promise of a day without " a system of preparation," would be the gain of the substance of resump tion in exchange for its shadow. Nor is the denunciation unmerited of that improvidence which, in the eleven years since the peace, has consumed $4,- 500,000,000, and yet could not afford to give the people a sound and stable currency. Two and a half per cent, on the expenditures of these eleven years, or even less, would have provided all the additional coin needful to resumption. THE EVILS OF UNCERTAINTY. The distress now felt by the people in all their business and industries, though it has its principal cause in the enor- 350 THE LIFE OF SAMUEL J. TILDEN. mous waste of capital occasioned by the false policies of our Government, has been greatly aggravated by the mismanage ment of the currency. Uncertainty is the prolific parent of mischiefs in all business. Never were its evils more felt than now. Men do nothing because they are unable to make any calculations on which they can safely rely. They undertake nothing because they fear a loss in everything they would attempt. They stop and wait. The merchant dares not buy for the future consumption of his customers. The manufact urer dares not make fabrics which may not refund his outlay. He shuts his factory and discharges his workmen. Capital ists cannot lend on security they consider safe, and their funds lie almost, without interest. Men of enterprise who have credit, or securities to pledge, will not borrow. Con sumption has fallen below the natural limits of a reasonable economy. Prices of many things are under their range in frugal, specie-paying times before the civil war. Vast masses of currency lie in the banks unused. A year and a half ago the legal tenders were at their largest volume, and the $12,- 000,000 since retired have been replaced by fresh issues of $15,000,000 of bank-notes. In the mean time the banks have been surrendering about $4,000,000 a month, because they cannot find a profitable use for so many of their notes. The public mind will no longer accept shams. It has suf fered enough from illusions. An insincere policy increases distrust. An unstable policy increases uncertainty. The people need to know that the Government is moving in the direction of ultimate safety and prosperity, and that it is doing so through prudent, safe, and conservative methods, which will be sure to inflict no new sacrifice on the business of the country. Then the inspiration of new hope and well- founded confidence will hasten the restoring- processes of nature, and prosperity will begin to return. The St. Louis Convention concludes its expression in regard to the currency by a declaration of its convictions as to the practical results of the system of preparations it de- GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 351 mands. It says : " We believe such a system, well devised, and, above all, intrusted to competent hands for execution, creating 1 at no time an artificial scarcity of currency, and at no time alarming 1 the public mind into a withdrawal of that vaster machinery of credit by which ninety-five per cent, of all business transactions are performed a system open, pub lic, and inspiring general confidence would, from the day of its adoption, bring healing on its wings to all our harassed industries, set in motion the wheels of commerce, manufact ures, and the mechanic arts, restore employment to labor, and renew in all its natural sources the prosperity of the people." The Government of the United States, in my opinion, can advance to a resumption of specie payments on its legal- tender notes by gradual and safe processes tending to relieve the present business distress. If charged by the people with the administration of the Executive office, I should deem it a duty so to exercise the powers with which it has been or may be invested by Congress as best and soonest to conduct the country to that beneficent result. A BAD CIVIL SEEVICE. The convention justly affirms that reform is necessary in the civil service, necessary to its purification, necessary to its economy and efficiency, necessary in order that the ordinary employment of the public business may not be " a prize fought for at the ballot-box, a brief reward of party zeal instead of posts of honor assigned for proved competency, and held for fidelity in the public employ." The convention wisely added that " reform is necessary even more in the higher grades of the public service. Presidents, Vice-Presidents, judges, Senators, Representatives, cabinet officers, these and all others in authority are the people s servants. Their offices are not a private perquisite ; they are a public trust." Two evils infest the official service of the Federal Govern ment. One is the prevalent and demoralizing notion that the 352 THE LIFE OF SAMUE^ J. TILDEN. public service exists not for the business and benefit of the whole people, but for the interest of the office-holders, who are in truth but the servants of the people. Under the influ ence of this pernicious error public employments have been multiplied ; the numbers of those gathered into the ranks of office-holders have been steadily increased beyond any possi ble requirement of the public business, while inefficiency, peculation, fraud, and malversation of the public funds, from the high places of power to the lowest, have overspread the whole service like a leprosy. The other evil is the organization of the official class into a body of political mercenaries, governing the caucuses and dictating the nominations of their own party, and attempting to carry the elections of the people by undue influence, and by immense corruption funds systematically collected from the salaries or fees of office-holders. The official class in other countries, sometimes by its own weight and sometimes in alliance with the army, has been able to rule the unorgan ized masses even under universal suffrage. Here, it has already grown into a gigantic power, capable of stifling the inspirations of a sound public opinion, and of resisting an easy change of administration, until misgovernment becomes intolerable, and public spirit has been stung to the pitch of a civic revolution. ONE TEEM, AND OTHEE EEFOEMS. The first step in reform is the elevation of the standard by which the appointing power selects agents to execute offi cial trusts. Next in importance is a conscientious fidelity in the exercise of the authority to hold to account and displace untrustworthy or incapable subordinates. The public interest in an honest, skillful performance of official trust must not be sacrificed to the usufruct of the incumbents. After these immediate steps, which will insure the exhibi tion of better examples, we may wisely go on to the abolition of unnecessary offices, and, finally, to the patient, careful or- GOVERNOR TILDEN S LETTER OF ACCEPTANCE. 353 ganization of a better civil-service system, under the tests, wherever practicable, of proved competency and fidelity. While much may be accomplished by these methods, it might encourage delusive expectations if I withheld here the expression of my conviction that no reform of the civil service in this country will be complete and permanent until its chief magistrate is constitutionally disqualified for reelection, ex perience having repeatedly exposed the futility of self-im posed restrictions by candidates or incumbents. Through this solemnity only can he be effectually delivered from his greatest temptation to misuse the power and patronage with which the Executive is necessarily charged. Educated in the belief that it is the first duty of a citizen of the republic to take his fair allotment of care and trouble in public affairs, I have for forty years, as a private citizen, fulfilled that duty. Though occupied in an unusual degree during all that period with the concerns of government, I have never acquired the habit of official life. When, a year and a half ago, I entered upon my present trust, it was in order to consummate reforms to which I had already devoted several of the best years of my life. Knowing as I do, there fore, from fresh experience, how great the difference is be tween gliding through an official routine and working out a reform of systems and policies, it is impossible for me to con template what needs to be done in the Federal Administration without an anxious sense of the difficulties of the undertaking. If summoned by the suffrages of my countrymen to attempt this work, I shall endeavor, with God s help, to be the effi cient instrument of their will. SAMUEL J. TILDEN. To General John A. McClernand, Chairman ; General W. B. Frank lin, the Hon. J. J. Abbott, the Hon. H. J. Spannhorst, the Hon. H. J. Eedfield, the Hon. F. S. Lyon, and others, committee, etc. CHAPTER XXVI. THE power of the man lies in his ability to concentrate his mind upon his work. Where others vaporize he crystal lizes. The realm of speculative philosophy has no attraction for him. He reduces statesmanship to one of the exact sci ences. He treats a problem in government as he would a problem in mathematics ; he takes all the factors, discovers their relative value, and then uses them. Glittering gener alities are his abhorrence. Facts are his friends and figures his delight. Out of this power of concentration spring two anomalous characteristics absolute fearlessness linked to great caution. Nobody who knows Mr. Tilden ever dreamed of frightening him. He is impervious to threats. He dislikes those who take counsel of their apprehensions. But he never moves till he has provided against every possible contingency. He vindicates his courage in his designs and displays his caution in the execution thereof. He did a bold thing in the sum mer of 1875, when, as Governor of New York, he promised the people in his speeches at Buffalo, Syracuse, and Utica, that their taxes should be reduced by six million dollars. But he did a cautious thing when he fixed the sum at six millions while he was paving the way for a reduction of eight millions which was effected. The defects in his character appear to be surface faults, but they are ineradicable inasmuch as they all grow out of his con centration of mind. When he has leisure to be agreeable, few A STUDY OF MR. TILDEN S CHARACTER. 355 men are brighter or more sparkling than he. On rare occa sions he gives rein to his wit and his imagination, which are the more brilliant perhaps on account of their infrequent use. But when he is busy he is not companionable. He never stops in his work to utter the meaningless phrases of the average politician. He cannot feign any delight at the sight of persons concerning whom he is indifferent. But he some times wounds the sensibilities of those whom he really loves if they happen to approach him at a time when his mind is occupied on a question which absorbs all his power of thought. They have only to meet him when the perplexities of duty weigh less heavily upon him, to discover what social resources he holds in reserve. When he has finished, to his own satisfaction, any piece of work on which he has been engaged, he is as happy as a boy just released from school. The troubled look in his eyes passes away, the wrinkled brow grows smooth, and his face beams with the sunshine of good nature. This humor lasts till some new problem demands solution, and then to that he surrenders all his powers. Mr. Tilden is no sentimentalist, but he possesses a great deal of sentiment. Friendship means more to him than to the poets who sing its praises, or to the weak creatures who yearn for it without understanding the possibilities of sacrifice which it involves. When he was past forty years of age, he voluntarily took upon himself pecuniary obligations equal to all the money he had earned by twenty years of laborious ef forts, that those who were bound to him by the ties of rela tionship might escape a threatened reverse of fortune, and that the declining years of his aged mother might be full of peace and free from sorrow. This is not the place to repeat the story of his benefactions to others. My knowledge of his generous deeds is not derived from him. It is a subject on which he never talks, and on which he will not per mit others to talk in his presence. The late Judge Mar tin Grover, of the New York Court of Appeals, who was one of the wisest jurists and closest observers of character 356 THE LIFE OF SAMUEL J. TILDEN. that the country has produced, was speaking of Mr. Tilden one- day, long before his nomination for Governor, and re marked : " That man has given away more money, and made less fuss about it, than any other man in the State of New York. He doesn t give on any abstract theory of philan thropy, but because his friends get themselves into trouble, and he can t resist the temptation to help em out." Mr. Til- den was very busily engaged in the preparation of a public paper in Albany when the report was brought to him that Charles O Conor was lying so seriously ill that the hope of his recovery had been abandoned. He did not utter a word. He dropped his pen, and, hiding his face from observation, he sat for full five minutes lost in deep, sad thought. His work was not resumed. He journeyed to New York that day, that he might be near to his old friend in the hour of his extremity. To him no other duty was so imperative as that which sum moned him to the bedside of the man he loved. Fortunately, Mr. O Conor recovered. Mr. Tilden returned to Albany, and went to work. Those who saw him grappling with the finances of the State in an effort to reduce the taxes, would not imagine that his abstracted and sometimes petulant man ner concealed such fountains of deep feeling. He is a shy man. He does not readily reveal himself even to those who think they have known him for years. His oc casional efforts to appear wholly at his ease in the presence of strangers are amusing rather than successful. It is almost impossible to sound the depths of his nature. His intellectual resources are inexhaustible. But his shyness his unwilling ness to make any display either of his learning or his wisdom makes him appear commonplace enough to many who see him for the first time. He has lived in New York City for forty years, mingling in the best society of the metropolis ; but the manner of the student is upon him still. The great prob lem which he seeks to solve, the hard lessons which he has set himself to learn the problems which have eluded the ef forts of other statesmen, the lessons which must be rightly A STUDY OF MR. TILDEN S CHARACTER. 357 read, if the welfare of the people is to be preserved, will en gage his attention while he lives. His home-life is comfortable and pleasant. His house in New York, in Gramercy Square, is a large brown-stone front, the lot extending back to the next street. It is sub stantially furnished, contains a vast number of books, a few good pieces of statuary, and plenty of pictures. But the first thing that strikes the visitor is the absolute freedom from ostentatious display. All that refined taste can suggest is there ; but refined taste is severe in its simplicity. Mr. Til- den s sister, Mrs. Pelton, a gracious gentlewoman, of charm ing manners, presides over his household. Her son, Colonel Pelton, and his wife and daughter, complete the family circle. At his own table, Mr. Tilden is the best of hosts, because the least obtrusive in his hospitalit} . Children always take to him. He is fond of them and they of him. Soon after his nomination, a little girl in Georgia sent him a letter of con gratulation. She was only eight years old, and she had printed out the words with laborious effort. None the less they had the freshness and sweetness of childish prattle. She closed her letter by saying : " I did not have any middle name, and ma said I might take one. So I took your name because I like Tilden best of all. Do you care ? " He did care. He cared so much that all other business was laid aside for five minutes, while he wrote a pleasant answer to his little friend in Georgia. Some of the letters which he receives are amusing, and he enjoys them as much as anybody. He em ploys a plain matter-of-fact clerk, who indorses on the back of each epistle the substance of its contents. He was running over a pile of these letters one day, reading the indorsements aloud, when he came to one over which he paused a moment, and then read : " Invokes the blessing of God upon you, and wants you to marry a Massachusetts widow." A quizzical smile beamed in his face, and, utilizing an expression which he is charged with using pretty often, he remarked, " I will see her later." He prizes at its full value the relaxation and 358 THE LIFE OF SAMUEL J. TILDEN. comfort which his home-life affords him, but the larger share of his time for forty years has been devoted to work, and he could not if he would release himself from those habits of in dustry which are woven into the warp and woof of his nature. Martin Van Buren said of Samuel J. Tilden, twenty years ago, " He is the most unambitious man I ever knew." Mr. Van Buren viewed Mr. Tilden from his own standpoint, of course the standpoint of one who had sacrificed much to the attainment of political honors, and who, after holding all the highest offices in the country, found himself disappointed and defeated at the last. His acquaintance with Tilden s boy hood, his appreciation of his talents, and his knowledge of the opportunities for advancement which he had rejected, led him to make the remark. He could not understand how a man might gratify a certain sort of ambition by attending strictly to his professional pursuits, winning the confidence of those around him, and discharging faithfully his duties as a citizen. Yet that sphere of life filled the measure of Mr. Tilden s am bition, and would fill it to-day if he had not been driven for ward by circumstances stronger than he could control. He has been charged with overweening ambition, and yet he never sought a public position in his life. He has been ac cused of working for his own advancement. He has worked for the advancement of a cause which he believes to be essen tial to the preservation of republican institutions, but he is no self-seeker. If he could have found his alter ego some man who possessed the courage, the energy, the intelligence, and the desire to bring about the reforms which he sought and which the country needed he would have supported that man for the presidency, and gladly have remained in retire ment himself. But the man was not to be found. Mr. Tilden told Secretary Stanton, in 1862, that a great military genius rose only once in two or three centuries. A great political reformer rises hardly as often as a military genius. The civic hero s task is more difficult, his labor more thankless, and his reward less certain. If it be ambition which induces any man A STUDY OF MR. TILDEN S CHARACTER. 359 to grapple with fat, sleek thieves, well intrenched in power, then it is that sort of ambition which prompts a soldier to volunteer to lead a forlorn hope in battle. Sometimes the leader of a forlorn hope survives, and great is his glory. Of- tener he is slain and forgotten. The chances are so much against him that his very existence demonstrates his unself ishness. The enthusiasm which Mr. Tilden arouses is not of the frothy sort. It is based on the judgment of men, not on their impulses, and is therefore enduring. If the Democratic party had not been convinced that he was the best represent ative of its best ideas, he would not have been nominated. From the first there was a feeling of safety under his leader ship. This feeling of safety begets confidence ; confidence begets buoyancy, and buoyancy begets enthusiasm which sweeps down barriers and^nakes heroes of us all. He is the best financier in the United States. He never made a mistake on a question of finance. These are broad assertions, but they are fully justified by the facts. His coun sel has been sought for twenty years by the safe and conserv ative capitalists of the country, and not by the stock-jobbers and reckless speculators, for with them he refused to have any dealings. His financial ability is one of the elements of his strength. Is it not true, if the finances of the Govern ment were wisely and economically managed by an experi enced hand, that the currency problems which trouble the theorists would solve themselves ? The love which Mr. Tilden inspires in the hearts of his personal friends is very deep. Almost any man who knows him well would willingly take the risk of death in his behalf with a tolerable feeling of confidence, however, that Mr. Tilden would step in at the last moment and save him. But confidence alone does not make love. One secret of his hold on the affection of those who are near him is that he never patronizes anybody. There is not in his nature one atom or trace of that vanity which gratifies itself by the con- 360 THE LIFE OF SAMUEL J. TILDEN. templation of a position superior to that of others. He meets everybody on a plane of perfect equality, not with an affecta tion of equality, but with a manner which makes the visitor forget in a moment that he is in the presence of the Governor of New York, and remember only that he is talking to a plain, sensible, and wise man. Governor Tilden is five feet ten inches in height, with spare figure, light complexion, and blue eyes. His head .is large and round. His hair, originally chestnut, is now plen tifully sprinkled with gray, but is still of abundant growth. He has entered his sixty-third year, but retains his strength and vigor in a remarkable degree. He comes of a long-lived family. The record is preserved of fourteen of his ancestors on his father s and mother s side, in a direct line, and it shows that their average age was upward of seventy-nine years. If Samuel J. Tilden should be called to the presidency, he would, in his own words, enter upon the great duties that would fall upon him, " not as one entering upon a holiday recreation, but very much in that spirit of consecration in which a soldier enters battle." He has drunk deep at the fountains of patriotism. He gives to his country that love which others yield to wife and children. He is whole in him self, possessing firmness without obstinacy, courage without bravado, religion without cant. The traditions of the fathers are his inspiration. He has no personal ends to serve, no other ambition than to save the land of our love and com memoration from the canker of corruption which ate out the heart of every republic of ancient times. That the purpose to which he has consecrated himself may be attained, through him or through others, is surely the prayer of every patriotic American. A SKETCH OE THE LIEE OF HON. THOMAS A. HENDKICKS 16 OF THE SITY a/7 A SKETCH OF THE LIFE OF EON, THOMAS A. HENDRICKS. CHAPTER I. LIFE AND CHARACTER. THOMAS A. HEKDRICKS was born in Muskingum County, Ohio, on the 7th day of September, 1819. Three years later his father removed to Shelby County, Indiana, and there took up his abode. The Hendricks family was possessed of a mod erate fortune, and Thomas was afforded the advantages of a thorough education. As a boy he evinced many of those at tributes which in after-life made him famous. He was intelli gent, kind-hearted, and sympathetic. His condition enabled him to render material assistance to many of his poorer com panions, and the opportunity to do a generous act w r as never slighted. His genial nature and warm heart, not less than his intelligence and ready wit, made him a favorite with all who knew him. When eighteen years old he entered Han over College, from which institution he graduated in 1841. His college-life was very much like the school-boy life which had preceded it. He w r as a good student and equally popu lar with his classmates and instructors. Leaving college, Hendricks, who was then twenty-two years old, went to Chambersburg, Pennsylvania, where he be gan the study of law. In 1843 he was admitted to the bar, and immediately after returned to Indiana, where he entered upon the practice of his profession. His success was rapid and well deserved. He won the confidence of all with whom he 364 THE LIFE OF THOMAS A. HENDRICKS. was thrown into contact, and, from the very outset of his professional career, gave evidences of superior legal attain ments and solid worth of character. He entered with an honest zeal into every case which engaged his attention, and never slighted any detail, however seemingly unimportant, which might strengthen the cause of a client. His industry reaped its own reward. He became distinguished at the bar both for his wide knowledge of the law and for the subtilty and soundness of his arguments. Men trusted him because they knew that his opinions were correct, and his convictions honest. Habitually cautious and courteous, there were still times when he threw aside these attributes, and became strongly aggressive. But his aggression was always against what he believed to be wrong. Under all circumstances he was a dangerous opponent. It has often been said, in speaking of Mr. Hendricks s early success as a lawyer, that, while many of his rivals were more apt to win their cases before a jury, he invariably carried his point with a judge. Like Mr. Tilden, Mr. Hendricks has achieved distinction in his profession, and his reputation as a lawyer rests upon a solid foundation. Yet, like Mr. Tilden also, he is seldom thought of merely as a lawyer. His political career has made him famous, and what he has achieved at the bar is forgotten in the more illustrious record which he has made in public life. That record dates back to the year 1845, at which time he was elected a member of the State Legislature of Indiana. This was only two years after he had entered upon the prac tice of his profession. He took his seat in the Legislature at the age of twenty-six, and did such excellent service that when the State Constitutional Convention was called, in 1850, he was chosen a member of that body. During these five years Mr. Hendricks had made rapid progress, and was looked upon as one of the most promising young men in the State. It is no matter of surprise, therefore, that he should have been chosen to represent the Indianapolis district in Congress, a position which he continued to fill from 1851 until LIFE AND CHARACTER. 365 1856. His record in Congress was alike honorable to him self and satisfactory to his constituents. During the four years which followed after his retirement from the House, and which preceded his nomination for Governor, Mr. Hen- dricks held the position of Commissioner of the General Land-Office. Up to this period (1860), although he had been actively engaged in political affairs, he had not neglected his professional duties. He had gained a strong hold upon the Democracy of Indiana, while his personal popularity and upright life had won for him the respect of his political op; ponents. In the memorable campaign of 1860, Henry S. Lane was nominated on the Republican ticket for the governorship of Indiana. Two years before, the Democrats had elected a Secretary of State by 2,581 majority. The man who was con sidered the strongest opponent to Lane was Thomas A. Hen- dricks, and he was accordingly nominated by the Democratic Convention. The campaign of that year was an exciting one, but it resulted in the defeat of Mr. Hendricks. This was ow ing not so much to the strength of Lane, as to the political revolution which extended throughout all the Northern States. The Republican party, headed by Abraham Lincoln, was car ried into sudden power. Indiana fell into the general line> and gave a Republican majority of 9,757. Immediately after Mr. Lane s inauguration as Governor, he was chosen United States Senator, and at once resigned the gubernatorial chair, in order to take his seat in Congress. His successor was Oliver P. Morton. When the election of 1862 came about, Indiana was counted certain for the Repub lican party, but surprised the political prophets by electing a Democratic Legislature. This victory had a broader signifi cance than the mere confines of the State. It was that year when a Senator in Congress was to be chosen, and it gave to the Democratic majority in the Legislature the power of select ing an able and upright man to represent Indiana in the Sen ate, at a time when ability and uprightness were more than 366 THE LIFE OF THOMAS A. HENDRICKS. ever needed. The choice of the Democrats wisely fell upon Mr. Hendricks. His past career recommended him so highly to the members of the Legislature, that his election to the high office of Senator was held to be only a just and proper recog nition of the fidelity with which he had discharged all public duties. He was chosen for the term ending in March, 1869. Mr. Hendricks s record in the Senate is in all respects praiseworthy and honorable. He served in the Committees on Claims, Public Buildings, the Judiciary, Public Lands, and Naval Affairs, and in all these positions he did his duty man fully and well. It is to be remembered that at this period the Democratic party was represented in the Senate only by a weak minority. Nothing was possible save an able protest against the various reconstruction measures adopted, and even this was to be made in the face of strong popular prejudice throughout the country, as well as bitter opposition in the Senate-chamber. Mr. Hendricks had no sooner taken his seat in the Senate than he was recognized as a leader among the Democratic members, and in a very short time he had achieved for himself a national reputation. He was strongly opposed to the plan of reconstruction as advocated by the Republican party, and upheld, most earnestly, the policy first advanced by Abraham Lincoln, and which Andrew Johnson afterward sought to carry out. He held it as a part of his political faith that the prosperity of the white people of the South, even though they had been rebels, was a matter of more impor tance than the prosperity of the negroes. He believed that the natural supremacy of the white race was a sufficient guar antee for the safety of all. Shaping his political conduct upon this theory, he naturally opposed the exalting of the freedmen into a governing class, while the white people were to be disfranchised. Such a course he believed to be no less an evil than slavery itself. The arguments which Mr. Hen dricks presented at that time have been adopted as the au thoritative statement of Democratic opinion, in the summaries of congressional debates. LIFE AND CHARACTER. 367 It has been charged, and that not unfrequently since his nomination for the vice-presidency, that Mr. Hendricks is a timid and over-cautions man. He may be cautious, and in some instances even timid ; but neither his caution nor his timidity ever smacks of cowardice. When the clash of a personal encounter once kindles the latent fire of his nature, he is bold, vigorous, and aggressive. Those who believe him to be lacking in force of character, or depth of conviction-, need only read his record while in the Senate. While they may not agree with all his opinions, they will be struck with the frankness and boldness with which he maintained his views. During the discussion of the reconstruction meas ures Mr. Hendricks took a determined stand, and held it against all the attacks of his opponents. His objections to the proposed amendments of the Constitution he stated clearly and concisely. These objections were based upon the belief that during the war, or so soon after its close as not to allow the passions of the country time to cool, the foundations of government ought not to be disturbed. An examination of his senatorial career will show that he voted for and supported those measures which were neces sary to maintain the vigorous prosecution of the war ; that he favored by his voice and vote the appropriation of 1864, which carried the rebellion to its close ; and that he pro posed and advocated an amendment to that bill, allowing an increase of fifty per cent, upon the soldiers pay, because of the depreciation of the currency in which they were paid. If Mr. Hendricks is a cautious man, his caution is the out growth of his sound sense ; if he be timid, he is still brave enough to stand unflinchingly by his principles, and to follow the line of duty, no matter where it leads. In the impeachment trial of Andrew Johnson Mr. Hen dricks played an active and important part, and added not a little to his reputation as a shrewd and able lawyer. Per haps no better proof of his ability and success in the Senate can be adduced than that before the close of a single term he 368 THE LIFE OF THOMAS A. HENDRICKS. had placed himself among the foremost men of his party, and had come to be regarded as a prominent candidate for the presidency. In the Democratic National Convention of 1868, which assembled in Tammany Hall, in the city of New York, Mr. Hendricks s name was brought forward and received an enthusiastic greeting. There were eighteen candidates in the field that year, and twenty -two ballots were taken before the convention made its choice. On the twenty-first ballot Mr. Hendricks received 132 votes, which was ahead of any of the other candidates except General Hancock, who received 135i. When the roll was called for the final ballot Mr. Hen dricks was gaining rapidly, until Ohio named Horatio Sey mour, and the convention unanimously agreed upon that distinguished statesman. Forgetting all personal ambition, Mr. Hendricks gave his earnest support to the nominee of the party, and did excellent work during the campaign which followed. Mr. Hendricks s term in the Senate expired in 1869. He returned immediately to his home in Indianapolis, and once more took up the practice of his profession. But, while he devoted himself to the law, he was not permitted to remain silent on the political issues of the day. Men came to him for advice on all important matters, and his wisdom and ex perience gave weight to his counsels. As illustrating the view which Mr. Hendricks took of the Southern question after his retirement from the Senate, the appended extract from a speech delivered in New Orleans, February 12, 1870, is given. This speech was received with the utmost enthusiasm, and reflects the sentiments of a very large class of the Democratic party : EXTRACT FROM GOVERNOR HENDRICKS S SPEECH HADE AT NEW ORLEANS, FEBRUARY 12, 1870. You will allow me to speak of one other question, which is some what local and peculiar to yourselves a question with which we of the State of Indiana shall have to deal, but not to the extent to which you have to deal with it. In one way or other the radicals of LIFE AND CHARACTER. 369 Washington intend to have it a fixed fact that the fifteenth amend- mend to the Constitution has been adopted. Eight or wrong, they intend it shall be declared adopted as a part of the Constitution of the United States. Under that provision, then, when it shall have been declared to have been adopted, the colored people of the whole country become voters ; they become clothed with political rights, as they have been before by congressional action, as far as Congress could do it, clothed with civil rights. It is a question for you to con sider very carefully what attitude you men of the South shall occupy toward the colored population. There is a deliberate purpose on the part of adventurers from the North a class of men who are de scribed as "carpet-baggers" [laughter] to appropriate the entire colored vote of the South to their cause. And what is their cause ? It is not your cause ; it is not the colored men s cause [assent] ; it is the cause of plunder [cheers]. And the question presents itself in this form : Are you, men of the South, willing that these adventurers shall appropriate that large vote in some -of the Southern States a majority of the entire vote? Are you willing that this vote shall be appropriated for such a purpose ? [A voice : " Not if we can help it ! " Laughter and applause.] How can we help it ? Simply enough. It is a question simply of personal influence between you, men of the South, " to the manner born," and those who have set tled here, on the one side, and these hap-hazard adventurers of the North on the other side. That is the way the question stands. New relations have come to exist between you and the colored people of the South. How will you place yourselves in regard to these new re lations ? They have not been of your seeking, and they may, peH haps, not have been sought by the negro ; but he is a voter in LouisiA ana, as he will be in Indiana, if the fifteenth amendment is declared \ adopted ; and it is not worth your while, nor is it worth my while, to go back on the fixed fact. That traveler in the mountain-pass is not wise, when he overtakes the storm, to be casting his eyes back / upon the plain which he has left. It is his business to consider the dangers which menace him at the time, and to save himself from the threatened peril. How can you do it ? These new relations are upon you. How are you to conduct yourselves toward the colored people ? They were your friends. There were social relations between you the relations of master and servant. They had your confidence, and you had theirs. Is it possible that the stranger can now come in and make these ancient servants of yours his servants and your enemies ? 370 THE LIFE OF THOMAS A. HENDRICKS. [Applause.] There is no occasion, in these new relations which were forced upon you, that you should entertain sentiments of dislike to the negro because of it. It is not of bis seeking ; he did not pro duce this change of relations. The altered condition of tbings.has been forced on the country and on you, not by the colored man, but by ambitious politicians, North and South, who wish to make capital out of it. [" That s so," and cheers.] I hope to see Southern men taking this weapon, which is placed in their hands, and using it for their country s good. [Applause.] You have no cause to entertain prejudice against the colored people. ["We don t do it!"] When your young men were far off in the field, and even your aged men many of them were absent during the four years of the war you left these colored men at your homes, where they stood sentinels at the doors, and your wives and your children were safe under their protection. They labored and cultivated your lands, and raised those products which supported the armies in the fields. And now is it possible that the foreigner I speak not of the foreigner as a man of another country, but men foreign to your interests, men of other sec tions of the country is it possible that they shall come in and make these colored men to hate you, and destroy you ? Your interests are the interests of the colored men. A few colored men may be brought around the lobbies of the Legislature ; they may be temporarily invested with a few offices : but you go to work and persuade the colored men that their interests are claimed by just laws alone, and that these apparent benefits which are conferred on a few of their number do not go to make up the benefits of the great body of them. Give them to understand that the offices which are conferred on the colored men here and the col ored men there work a positive injustice to the people at large. Let them understand that, with regard to their civil rights, you are will ing to give them just laws. The negro, of his own motion, is not going to ask for social equality or social rights. It is the Northern adventurer only who is trying to agitate that question, to make it a groundwork of ill-feeling between you and the colored man. In 1867, Senator Wilson, addressing an audience in this square, declared this true doctrine that no law in any land could open any man s parlor to him, and no law could open his parlor to any other man. The social rights, the social position of a man, depend upon himself. They are not regulated by law, and the man that insists that there will be social relations between the whites and the blacks incon LIFE AND CHARACTER. 371 sistcnt with the proper relations of those two races is the friend of neither. He is the enemy of both races. [Applause.] In my judg ment, the colored people will be satisfied if you assure them that you will give them just laws, fairly administered. Do this, and then the outside adventurer cannot turn their votes against you. Let the col ored man understand that the legislation of your State is being car ried on to make a few men rich at the expense of the great body of the people. Appeal to the colored man to stand by you in your fight for honesty, for justice, for integrity, and for equal laws ; and that appeal will reach his heart as readily as it reaches the heart of the great body of the white people. I don t want you to consider what I have said as the expression of a man who is well informed on the subject. I have never been brought into close contact with colored men to any considerable extent. I don t know much of their habits ; I don t know much of the influence brought to bear upon them ; but I do believe that the men who have known them from childhood up the men who have been their friends in times past may, by a proper course, restore that influence in themselves which will enable them to secure the colored vote for the good of your State and for the good of the country. Let the consolidated sentiment of the men of Louisiana be brought to bear upon the Legislature and for the right. You ask nothing that is wrong ; you ask that you may be taxed only for the public good, and that the corrupt tide of special legislation shall be stopped. We have much to accomplish. "What is it we in tend ? That this Union shall be perpetual ; that it shall rest on the Constitution; and that all the rights, privileges, and prerogatives of the State shall be maintained forever under that Government ; and that the national Union, thus supported by States clothed with all their rights, will be the temple in which freemen shall worship for ever together. [Cheers.] What do we wish to accomplish ? Nothing that is wrong every thing that is right. We wish to establish in the United States equal laws and just taxation. These we must have. This plunder of the State and national Treasury is becoming universal. There must be a return to a spirit of honesty in the public service, both national and State. There is a power greater than that of law. Daniel Webster, in one of his beautiful orations, when the question was agitating the heart of the world what treatment Russia would extend to Kossuth, and whether Russia would demand the return of that patriot when he was under the protection of Turkey, said there was a power 372 THE LIFE OF THOMAS A. HENDRICKS. mightier than the earthquake, more terrible than the rumbling of the storm the judgment of mankind. [Cheers.] Let us, North and South, unite now for the purpose of maintaining the institutions of our country in the spirit in which they were estab lished by the great men who founded this government. I thank you for the attention you have given me. I thank you for this welcome. It is my first visit to the Southern country. I thought that I kneAV some of your institutions. I thought I would come and see if I was mistaken. I am satisfied that the course which I felt it my duty to take in regard to the question of reconstruction was right. I thought it was right at the time. Now I doubt it not. I know I was right. [Cheers.] I have seen you face to face. I have heard your gentlemen talk on this subject. I know how you feel. The past is the past to you. The future is coming with its weighty interests and responsibilities. Let us rise to meet the future. Let us welcome it; and let us be sure that "liberty for all and oppression for none" is the watchword of that future. [Loud cheers.] In 1872, when Horace Greeley was made the presidential candidate of the Democratic party, and when the fusion of the so-called Liberal Republicans postponed the day of am bition, Mr. Hendricks, although the movement was in opposi tion to his own views, acquiesced in what appeared to be the popular will, and gave his hearty approval to the new de parture. During that eventful campaign he was not allowed to remain idle. The Democracy of Indiana felt the need of a strong and popular man to become its standard-bearer. Such a man was found in Thomas A. Hendricks. In face of his earnest protest he was, therefore, again nominated for the governorship. The result of the campaign of 1872 need not be repeated here. It was wellnigh disastrous to the Demo cratic party throughout the country; and Indiana, although it did better than many other States, had little to brag about. The Republicans carried the Legislature, and elected all of their State ticket except the Governor and Superintendent of Public Instruction. Grant s majority was 21,090; but so great was the personal popularity of Mr. Hendricks that he overcame these sweeping figures, and was elected by a ma- LIFE AND CHARACTER. 373 jority of 1,148 over the Republican candidate, Thomas M. Brown. Governor Hendricks s administration has been distin guished from the first for its honesty and ability. When it has become his duty to take an active part in the discussion of the issues of the day, he has done so in a wise and manly way. He has maintained his opinions with firmness and effect, albeit he has sometimes adopted a conciliatory tone. At the Democratic State Convention held at Indianapolis in July, 1874, Mr. Hendricks was made permanent chairman, and in his address delivered on that occasion he argued that gold and silver were the true basis of our currency, and that the proper method of returning to specie payments was through the gro wing-up process the development of the resources of the South, the increase of production, and the retrench ment of public and private expenditures. The platform adopted at the Indianapolis Convention, so far as its treat ment of the financial question was concerned, differed essen tially from the views held by Governor Hendricks. In the canvass which ensued he took occasion to define distinctly the points of difference between the doctrines of the platform and his own opinions. In illustration of Mr. Hendricks s teachings at this time, an extract from his address to the convention is given. After arguing against the hasty con traction of our paper circulation, checking labor and paralyz ing enterprise on the one hand, and against undue inflation, which would lead to depreciation and a reckless spirit of speculation and adventure on the other, he said : We desire a return to specie payments. It is a serious evil when there are commercial mediums of different values; when one descrip tion of our money is for one class and purpose, and another for a different class and purpose. We cannot too strongly express the im portance of the policy that shall restore uniformity of value to all the money of the country, so that it shall be always and readily converti ble. That gold and silver are the real standard of value is a cherished Democratic sentiment, not now nor hereafter to be abandoned. But I do not look to any arbitrary enactment of Congress for a restora- 374 THE LIFE OF THOMAS A. HENDRICKS. tion of specie payments. Such an effort now would probably pro duce wide-spread commercial disaster. A congressional declaration cannot make the paper currency equal to gold in value. It cannot make a bank-note equal to your dollar. The business of the country alone can do that. When we find the coin of the country increasing, then we may know that we are moving in the direction of specie payments. The important financial question is, How can we in crease and make permanent our supply of gold? The reliable solu tion is by increasing our productions and thereby reducing our pur chases and increasing our sales abroad. He can really obtain money who produces more than he consumes of articles that are wanted in the market, and I suppose that is also true of communities and na tions. How can the Eepublican party atone to the people for its evil policies which have driven gold from the country, and rendered a return to specie payment more difficult, and made its postponement inevitable ? Those who are in any degree familiar with Governor Hendricks s views know perfectly well that he is and always has been in favor of hard money. His opinion with respect to resumption may have differed from others of his party, but he has invariably argued that gold and silver are the only basis of our currency, and holding to that belief he cannot be said to represent other than a sound financial doctrine. His action in going into the Ohio canvass in 1875 in support of Mr. Allen was based upon the desire for the success of the Democracy. He deemed the triumph of the party in that State essential, and threw himself into the canvass, heartily holding that the financial issue was not the overshadowing one. The great thing to gain was victory, no matter whether some of the men in the same rank agreed with him on all points in politics or not. Governor Hendricks s personal appearance is most pre possessing. Of medium height, erect, active, and vigorous, with a manly, handsome face, and large, expressive features, he wins the good opinion of all who meet him. His face is a blending of mildness and determination. The eyes are soft and blue, and the chin dimpled, with an expression of good- humor about the mouth ; but the high brow and heavy jaw LIFE AND CHARACTER. 375 indicate wisdom and resolution. His complexion is florid, and his hair and side-whiskers are yet untouched with gray. He looks like a man who has lived a happy life, and who, through the turmoil of a public career, has never lost his love for the refining influences of home. To acquaintances he is affable and easy, to close friends warm and lovable, to politi cal partisans courteous but cautious. He would rather con ciliate an enemy than oblige an ally. His habits are such that he found $5,000 a year ample for his expenditures during his senatorial term at Washington. He has always trusted to doing the work which he had in hand well as the highest recommendation in the long-run before the people, and the many honors which have come to him seem to have been con quered without great effort. Mr. Hendricks is married to a woman of great culture and force of character, who has been a constant helpmate to him through life. Governor Hendricks possesses the quality described as magnetism in a wonderful degree. Those who once fall under the bewitching influence of his voice, who feel the warm grasp of his hand, and look into his honest face, are henceforth his friends. With the exception of Horatio Seymour, it is doubt ful if any other man in America can exert as great an influence over a popular assemblage as Mr. Hendricks. And all the power that he possesses over men in mass he possesses over them individually. He has a temper so sweet and sunny that no adverse circumstances can disturb it. In 1868 he was the favorite candidate of his State for the presidency. In 1872 he would probably have been the nominee of the party but for the Liberal alliance. In 1876 he would have been at the head of the ticket if Governor Tilden had not come to the front. But he has met all these disappointments (if disappointments they were) in such a spirit of philosophical good-humor that his genial face gives no sign of any inward strife. He enjoys not only the love of unnumbered friends, but the respect of the country. He has already won his place in the first rank of living statesmen, and the end is not yet. CHAPTER II. SPEECH AT INDIANAPOLIS. DUKING the campaign of 1874 Governor Hendricks made a number of stirring speeches, none of which, perhaps, were received with greater favor than was that delivered at Indian apolis on the evening of Monday, September 14th. As illus trative of Mr. Hendricks s opinion on many important issues, it has been deemed advisable to reproduce that speech in full. GOVERNOR HENDRICK&S SPEECH AT INDIANAPOLIS. The fortunes of the Republican party had become so desperate at the late adjournment of Congress, that it was found necessary to ap peal to the people in a congressional address, to stand by the leaders. The address was signed by thirty-nine members, constituting the congressional committee. General John Ooburn, of this State, was one of the thirty-nine. They ask to be continued in power, and their army of eighty thousand office-holders to be perpetuated on the pay rolls, because they are good and the Democrats are bad. And they go back thirty years before the war to prove the latter. I think no Indianian had a right to sign a paper saying that from 1830 to 1860 there is hardly a memory left connected with the control of public affairs "at which the nation should not blush." During that thirty years our population increased from twelve to thirty-one millions, and the wealth and commerce of the country correspondingly advanced. The resources were gradually but steadily developed. The people were prosperous, contented, and happy. You know that bad gov ernment could not bear sucli fruit. That period included the greater part of Jackson s Administration, which is yet distinguished for in tegrity, firmness, and statesmanship, and which strengthened the confidence of the world in free and republican institutions. During SPEECH AT INDIANAPOLIS. 377 that period Texas was annexed, a country large enough for three great States ; and now, after the public lands under the control of Congress have heen so largely granted away, no portion of our coun try offers greater advantages to our people, who need and seek cheap homes and farms, than Texas. That period includes the administra tion of the Treasury by James Guthrie, of Kentucky, a great man who did not suffer the loss of one dollar of the people s money. That generation has passed away, but it has left many names illustrious for patriotic devotion to country and elevated statesmanship. "What think you of Jackson, of Benton, and Oass, and Silas Wright, of Marcy and Woodbury, and of Douglas ? Did they not always and everywhere vindicate their country s right and honor ; and in the great contests with the giants of the Whig party were they not able with dignity and credit to maintain themselves, their party, and their cause? Over them, their works and their achievements, this con gressional committee of thirty-nine, moved by the spirit of modest virtue, and like the sons of Noah going backward, would throw the mantle of forgetfulness. Who are the committee of thirty -nine, good souls and pure, who are so ashamed and would have the country blush for what our fathers did ? I will not name them all ; that would be too much. So much excellence and virtue would overcome you as an excess of light would blind you. Chandler, Cameron, Conover, of Florida; Mitchell, of Oregon ; Cobb, of Kansas; some delegates from the Territories ; and Stewart, of Nevada. The meeting of the committee for a last reading of the address must have presented a scene of thrilling interest. The delicate sen sibilities of Chandler were thoroughly aroused by the sentiment that he lived in times of such elevated purity, and that he was not ex posed to the corrupt influence of association with Andrew Jackson. At first Mr. Cameron was disturbed by some obscure reference to official integrity, which was hinted at as proper, for it suggested the disagreeable memory of the resolution of the House of Repre sentatives during the war, which made it necessary for him to abdi cate the War Department ; but when he perceived the blow struck at the men of the past he was comforted, for they hit that granite man, William L. Marcy, who set an example of illiberality and un- kindness in that office in his conduct of the Mexican War, in not allowing his friends and partisans to grow rich off of the army and the people. Mitchell, of Oregon, had been a little unfortunate in coming into 378 THE LIFE OF THOMAS A. HENDRICKS. the Senate with a very disagreeable odor about his character, so much so, indeed, that others were restless in sitting in the cham ber with him ; but that was past, fumigatory explanations had been made, and they had become accustomed to it, as indeed they have lately become accustomed to a good many new things ; but his dis tress on that account was forgotten in the abasement which he felt in contemplating so much above him the sublime faith of Stephen A. Douglas in man s right and capacity for self-government. Senator Clayton, of Arkansas, could properly sign such an ad dress, because he had been investigated and whitewashed, but I could not tell why the gentle delegates, political eunuchs, from Colorado, New Mexico, and Arizona, should display so much passion toward the men of the past. But upon reflection I knew it was because they had seen so much of the Indian service out there, and so appre ciated its purity, its justice to the white man, and its care for the Indian, that they could not endure the stern and positive way in which Jackson made the Indian obey the authority of the country, and the white man respect the rights of the Indian. True, the service has been unfortunate of late ; it costs about $7,000,000 for the supplies and maintenance, whereas it used to cost, when the number was far greater, but $3,000,000. And if we in clude the military government and control, the cost must be many times greater ; and the misfortune is, that the Indian is becoming worse, and the borders more insecure. But if I am mistaken in supposing that it was the Indian service which so moved the pure minds of these delegates, then it must be their long residence in the city of Washington, and their observation of the highest development of their party in the government and improvement of the District of Columbia. True, a terrible and crushing debt has been created, reaching nearly $30,000,000, which Congress will probably pay out of the Treasury; and corruption bore sway, so that even the form of republican government was abandoned, and a Eoman triumvirate was established and rules the capital of the nation. But what care these delegates for all that ? They see the grandeur and the splendor of the city, rivaling the seats of monarchy in the Old World, and they look with contempt upon the cheap and plain style that prevailed during the thirty years which they denounce. It may have been this feeling that caused them to unite with General Coburn and the others in this sentiment taken from the address: "It has been loudly vaunted that those SPEECH AT INDIANAPOLIS. 379 were cheap Administrations. Compared with the expenditures of these times, they were cheap, very cheap. Compared with their worth to the country, they were probably the most profligate the world ever saw. They cost the people from $50,000,000 to $75,000,- 000 per annum. Those millions maintained for us the empty pageant we called government. It was the worst pageant that could be con trived. It was not even showy ; it was vulgar." That, it seems, is clear enough. The simple and unostentatious style of the past is to be held in contempt as vulgar. Then men la bored faithfully and accounted truly in every public trust ; then taxes were low ; and the laws were plain and easily understood ; then in fluence and respectability were sought and won because of official integrity. Some old men yet live who recollect those times. But now government is to be made a pageant. A glittering, gaudy, pre tentious, and parvenu? aristocracy is to take the place of a despised and crushed Democracy. The people are to be made contented by brilliant and costly show, and the display of power. By such a course Louis Napoleon maintained himself for a while upon the throne of France, but his failure and disgrace came upon him and his people when the hollow structure of his authority was brought against the real power of a solid people. Let us look at some of the specific charges in the address against Democratic rule. "We bullied Austria out of a Hungarian refugee." That was the case of Martin Koszta, a Hungarian by birth, who had emigrated to this country, had lived in New York one year and eleven months, and in proper form, according to our laws, had de clared his intention to become a citizen of the United States. In 1853 he went to Europe on business, carrying an authenticated copy of his declaration, and intending soon to return. While at Smyrna, he was seized by the emissaries of Austria and forcibly taken on board the Hussar, an Austrian brig-of-war, and held in close confinement, to be carried back for punishment by that cruel government because of his aspirations for liberty. Captain Ingraham, of our navy, was then in command of the sloop-of-war St. Louis, in the Mediterranean, and, coming to anchor at Smyrna, was told by our consul what had taken place. After con sulting our representative at Constantinople, he demanded of the Austrian commander the surrender of Koszta, with the assurance that he would bo taken if not surrendered. He was surrendered, and placed under the protection of the French consul, and returned 380 THE LIFE OF THOMAS A. HENDRICKS. to the United States, and Austria never laid her iron hand upon him again. For his gallant and noble conduct, Congress voted Captain Ingrabam a medal. Mr. Marcy, as Secretary of State, in a corre spondence of extraordinary ability, maintained and vindicated our country s position and conduct, and established public judgment in our favor. Do you regret that Koszta was not left an Austrian pris oner ? If not, what think you of this charge against the Democracy by the Eepublican Congressmen ? The next charge is in these words: "We despoiled Mexico of a portion of her territory." By treaty, at the close of the Mexican War, we acquired New Mexico and California ; we hold them still. From the latter we have realized untold wealth. But is it true that the acquisition was not the result of legitimate war and fair treaty ? that it was the act of force by the strong over the weak ? that it was robbery ? and that the officers and soldiers in that war were despoilers ? If that be so, then, however proud the people have been of the achievements of the soldiers, and of the magnificence of the acquisition, ought not the country to be restored? No; the question was long since settled. It is ours by legitimate and proper war and fair treaty, and the demand made that we should blush because of that war and its results, only shows their inability to find real fault in Democratic Administrations. They also charge, "We demolished Greytown." That is true. It was in 1854. It was on the line of travel and commerce between the Atlantic States and California, and after that the semi-barbari ans and half-clothed savages of that locality no more interrupted our commerce, or murdered our people. KEGTJLATION OF TEANSPOETATION. By what authority and in what manner our internal commerce shall be regulated is a question of present and deep interest, and party managers who ask an indefinite extension of power should declare their policy in unmistakable terms. In their addresses the members of Congress evade it, except to say that, whatever may or may not be expedient to be done, " only the Eepublican party can be relied upon to do it." Why so ? Has that party not been in power, both State and national, long enough to have done something, if its leaders were really in favor of anything ? In respect to the proposition that Congress shall build a double- track railway from the Mississippi to the Atlantic, the congressional SPEECH AT INDIANAPOLIS. 381 address says, " This is worthy of careful consideration." And in respect to the proposed expenditure of $20,000,000 per year by Con gress to open or enlarge several water-channels over the country, they say, "We invite your earnest and careful consideration of that proposal." Can you tell what they are in favor of? But their utterances are yet more confused in respect to the regu lation of fares and freights. .Shall it be under the control of the States or of the companies? They say that the objections to State control " are so serious that it should not be embraced if a better one can be found ; " that it would drive capital from us. They add, " It is now a mooted question whether that price (fare and freight) shall be named by the company or by the people." ... " It is manifest that if the company be allowed to fix the price, they may demand too much. Venders of all commodities are very apt to want all they can get. On the contrary, if the people or their agents fix the price they may set it too low. Purchasers are very apt to want commodities as cheap as they can be had. It is not probable that either party to the transaction would always hit upon the exact equivalent. The consequences of a mistake would probably be found most injurious if made by the people. If the company makes the mistake and charges too much, no one is obliged to employ it. The producer does his own carrying before the railway is built. He has the perfect right to do so after it is built." ..." Under favor able conditions, indeed, the carrier may demand and receive more than a fair share of the profits of production. Where such is the case, when the State finds the producer makes but ten per cent, while the carrier makes fifteen or twenty per cent., it is very easy and per fectly legitimate for it to say to the company : * The work you do can be done for less money ; we will pay you for your road what it will cost to build such another, or you may keep your road and we will build another. So the people are not helpless against exorbitant charges. On the contrary, if the people set the price, and set it too low, the consequence may be graver." From the address I have read thus fully because it is a careful ly-prepared appeal to the people, and speaks with authority for the party. And now I ask, "What are they for ? What are they against? Is it a grand government railroad, or water-lines of communication ? "Worthy your careful consideration," is the answer. This alone appears clear, that they oppose the regulation of fares and freights by public authority, and favor leaving their regulation to the com- 382 THE LIFE OF THOMAS A. HENDRICKS. panies. Whatever you think of the position, the reasons given are vicious. " If the people fix the rates they are likely to be too low, and capital will be driven off." Why so ? Intelligent legislation would regard railroads as important public agencies to be protected, if not encouraged. But they add : u If the company makes the mis take and charges too much, no one is obliged to employ it. The producer does his own carrying before the railway is built. He has the perfect right to do so after it is built." That language in the mouth of the company itself would be justly offensive. It does not correctly state the relations between the companies and society. The companies are created by law, as artificial persons, and clothed with important privileges, because of the benefits the construction and maintenance of their roads will be to the community. Except for that, they would not exist. Except for that, they would not be clothed by law with that quality of sovereignty which enables them, like the State, to appropriate private property. But for the fact that they are public, and for the public, and not private, they could not enter upon, condemn, and appropriate the lands and timber of the citizen. This view is in accordance with legislation, judicial decisions, and public policy. And the companies cannot, say to the producers, nor can these members of Congress say for them, "If the fares and freights are too high, you can carry your own produce to market as you used to do." The public corporation must serve the public at reasonable charges. That is the purpose of its existence, and- the advantage of the members is but an incident. Highways, whether rail or gravel, might be made by the State directly, and in every respect would be under State control. The public corporation, created to build and maintain such highway, stands, in respect to its powers and its duties, in the place of the State. It is a creature of the State, endowed with a part of its powers, to serve the public. And if such a corporation refuses to serve the public at reasonable rates, the State may compel such service. I suppose the rule in respect to a private corporation would be different. In this I do not refer to the case in which the State may have expressly relinquished the control to the corporation itself. In this State, the power is expressly reserved to amend the general laws under which railroad companies have been organized since 1853. If possible, the other remedy against exorbitant charges, suggest ed by the congressional address, is more objectionable. It is, that the State shall buy the road from the company, or build another road by SPEECH AT INDIANAPOLIS. 383 its side. It is not probable that the people of Indiana will ever again permit the State to enter npon the hazardous work of constructing or managing works of internal improvements. The reliable remedy is to be found in the wise and prudent exercise of the powers which the State has over her own institutions. Under the pretext of regulating commerce among the States, the dangerous scheme has been devised of congressional intervention and control over State corporations. The real purpose is to strengthen Federal authority, and promote the concentration of poAver. Can you conceive a scheme of greater danger to the reserved rights of the States and of the people ? These corporations exist by State author ity, and their powers are defined by State laws, which Congress has no right to modify. Should Congress, by commissioners to be ap pointed by the President, take the management of railroads and lines of telegraph, every person in the employment of the companies will, to some extent, be made dependent upon this new power, and made to do its bidding. Give this new power, this enormous patronage to the President, and the problem of the nomination for the third term is settled. Can you estimate the corruption it would produce ? Sena tors Morton and Pratt both advocate the appointment of commission ers with power to fix the fares and freights. They concede that the same rates cannot be adopted for all the roads ; that they must be adjusted according to cost of construction and repairs, and amount of business, etc. Who will be the commissioners with such powers to regulate rates as between the companies themselves and between them and the people? With tne President s capacity for bringing into office men not known to the country, we might expect a new Sanborn, an unheard-of Eichardson, a Tennessee Murphy, a Sawyer, and a Shepherd. Their brilliant passage from road to road in the palace-cars of the companies, as they inspect, and judge, and adjust the rates, will never be forgotten by the people. The scenes will be gay and festive, for the officers of the companies will know that millions will depend upon the decisions. And when they come to decide between the interests of the corporations on the one hand and the modest rights of the farm ers on the other, how do you think the case will go ? It will be no case at all. The Credit Mobilier was a modest .and retiring cyprian compared with this brazen-faced harlot. It was a strange coinci dence that the Credit Mobilier overcame men of only one class, with but a single exception. They were good men, and to be trusted, and 384 THE LIFE OF THOMAS A. HENDRICKS. not like the Democrats, bad. The people are nearly done with such trash and deception. To secure a fair management of railroads and a just rate of trans portation, are the farmers and mechanics not safer in the hands of their immediate representatives in the State Legislature than in the hands of Congress, or of such commissioners? The responsibilitj of the people is more direct, and the representatives are more in your sym pathy, and corrupting influences are less powerful. The Credit Mobi- lier grew out of a congressional enterprise. Within the past three years the Pennsylvania Railroad was able in Congress to make its own selections of extensive and valuable ground in the city of "Washington over a powerful opposition. The Central Pacific Railroad came very near carrying through Congress a grant of an island of immense value in the harbor of San Francisco, although it was of the highest impor tance to the Government for military purposes, and was so reported by the army engineers. Home interests are safest under home man agement. The proceeding to regulate the relations between the rail road corporations and the producers by Washington City commission ers would present the spectacle of the jury eating and drinking in the dining-hall of the rich defendant, while the poorer suitor, in his humble home, bewails his unequal fortune. FINANCE. The expression in favor of a return to specie payments is very general, but the real question is, When and how can that be accom plished ? So long as the supply of coin is so small as compared with the paper-money, it is impossible. The effort now would probably result in commercial disaster. The people so believe. No sentiment attributed to Mr. Greeley in 1872 was more hurtful to his political fortunes than the demand for immediate specie payments. To render it possible, without hurt to the country, coin and paper must come nearer together in quantity.. They will then be nearer, if not uni form, in value. How shall that be brought about ? By reducing the paper currency ? With the present burden of national, State, and lo cal taxation, and the large volume of other indebtedness to be pro vided for, that cannot be borne. It would cramp business and par alyze labor. No one desires a return to specie payments more ear nestly than myself, for I believe gold and silver are the real standard of values, universal and permanent. As I had occasion once before to say, the existence of commercial mediums of different values, one SPEECH AT INDIANAPOLIS 385 description of money for one class and purpose, and another for a dif ferent class and purpose, is too serious an evil to be long endured. All the money of the country should be of uniform value and readily convertible. But we are not in that condition. Our paper-money exceeds the coin by nearly five dollars to one. How shall we bring them nearer together in quantity, that they may approach and meet in value ? Shall we commence at the top and tear down, or at the bottom and build up ? Business, enterprise, and labor, every impor tant interest of the country, demand that the volume of the currency be maintained to meet their requirements ; but every interest will be strengthened by increasing the supply of coin. How is that to be accomplished ? By encouraging an increased production of our great staples that command the foreign market ; by reducing our expendi tures in foreign purchases ; and by reversing the fatal policy which has sought to make our debt a foreign debt. When we purchase less of foreign goods and sell more of our productions abroad, and cease to pay so much of the interest on our debt abroad and pay it to our own citizens, the current of gold will turn toward our shores ; and then specie payments will be certain, natural, and permanent, and will become the basis of an enduring prosperity. The declaration in our State platform, that the five-twenty bonds should be paid in Treasury notes, has attracted much attention. The subject, for some years, has not been considered by the people. In 1868, when it was a living and a practical question, I thought, and so attempted to maintain, that the laws under which the bonds and greenbacks were issued allowed the payment in the latter. I have no doubt the laws admitted that construction ; that it was the proper construction. And I think no subsequent legislation should have changed the mode of payment. But by the first act which President Grant signed in 1869 the faith and honor of the country are pledged to the payment in gold. That was an act not required by any cir cumstances in the condition of our affairs ; it was a special favor to the holders of the bonds, to which they were not entitled ; and it was a corresponding wrong to the tax-payers. Under it many millions of premium have been paid which the contract did not authorize. But the present question is, What is the effect of the act of 1869, pledging payment in gold ? Upon that question I have no doubts. Congress passed it, and the President approved and signed it. They had the constitutional power. The people had elected them upon an equivo cal platform, and their acts within the sphere of their power bind the 17 386 THE LIFE OF THOMAS A. HENDRICKS. people. Millions of the bonds have since been sold, and the pur chasers must be paid in accordance with the pledge given. If my neighbor holds my note for money to which I have a complete defense in law, as that it was given without any consideration, or that it was obtained by fraud, and I say to another neighbor who contemplates purchasing it, that it is right and will be paid, and, relying upon that statement, he does purchase it, I cannot withdraw that statement. It binds me, into whatever hands the note may subsequently pass. It is because my assurance induced him to buy the note, and it would be a fraud upon the holder to allow me to set up any defense which existed at the time I made it. A lower standard cannot be set up for the Government than that which measures the rights and liabili ties of individuals. It is because the act of 1869 is thus binding that it was so grievous a wrong upon the people. The party which did it should be held politically responsible. This question is rapidly losing practical importance, for the bonds have been converted in large quantities and are now being converted into five per cents., carrying the promise of payment in gold upon their face. That is one of the wrongs resulting from the act of 1869. THE CIVIL-EIGHTS BILL. We had been led to hope that the questions and controversies be tween the white and black races had been finally and definitely set tled. By law they had been placed upon terms of equality in respect to personal and political rights, and it was supposed that control of the social relations would not be undertaken, but we were mistaken. Tnere is pending in the House a Senate bill, which assumes the right to regulate the schools, public conveyances, etc., in the States, and to declare by whom and upon what terms they shall be enjoyed. These have always been held to* be domestic institutions and subject only to State control. This is another effort to concentrate power. If Congress, upon any pretense, may prescribe who shall be ad mitted to the schools, may it not, on the same pretense, go further and prescribe the terms and regulate the treatment of the scholars in the schools, and do whatever may be desired to preserve a sup posed equality? And the pretense under which Congress compels admission to hotels and places of amusement will go further, and regulate the treatment after being admitted, for equality may require that too. Thus we will have a usurpation of power in Congress to SPEECH AT INDIANAPOLIS. 387 regulate the most interesting and delicate of our domestic affairs. It is an assumption a usurpation. There is no such power. Our con stitutional amendments do not confer it. Our common schools, in their control and management, should be kept as near to the families as possible. This movement is another and dangerous effort to con centrate power. It can do neither race any good, and will probably^ harm both. The races are not alike, and their amalgamation is un- \ natural and offensive to the better classes of both. I suppose, if left \ to their own judgment and wish, the colored people would be con tent to associate together. Are they not willing that their children J shall go to school together ? Why not? "Full and sufficient provision should be made for their education, as ample as for the whites. It is so now in all our cities, I believe, and will soon be so throughout the State. Let us protect free education throughout the country from this dangerous blow. Our Senators supported the measure. Mr. Pratt now seeks a reelection. To show you the spirit influencing him, I will read an extract from his speech made in the Senate the 20th of last May : " It has seemed to me a most surprising thing that people who declaim against what they call negro equality are never heard to I start any objection to admission to fullest rights of citizenship of the foreigner, though he be ignorant to the last degree, a pauper, or j a criminal, unacquainted with our laws and not capable even of speak- I ing our language. More than the third of a million of immigrants \ from every country of Europe annually land upon our shores and are/ -heartily welcomed to the privileges of citizenship, with whom it is 1 not unfair to say the negro population of this country will bear favorable comparison in all the elements that go to make useful citizens." SOUTIIEEN TEOTIBLES. It is now so noticeable a fact that no one can fail to see it, that immediately preceding the important elections troubles are excited between the whites and blacks in the South. It has two effects. It is made the pretext for sending troops into the Southern States and controlling the elections for the radicals; and it is used in the North to arouse radical passion, and thus carry the elections there. Now, as these are the only results that can follow, who does it? The emis saries of the party that makes a gain by it. My countrymen, we must look squarely and honestly at this ques tion of the strife between the two races. 388 THE LIFE OF THOMAS A. HENDRICKS. During the war, when the Southern men were off in the field, there were no insurrections. The colored people preserved the peace at home. After the close of the war there was harmony between the races until your unfortunate policy of reconstruction was started. In that you undertook to base the machinery of society upon one element, and to exclude intelligence. You stripped the white man of political privileges, and clothed the negro with political power. The races had been harmonious ; but at once, and for a purpose, you placed them in hostile attitude. You left many of the hangers-on of the army in the South ; men who went not to fight, but to plunder. They were your emissaries ; they organized the negroes into a politi cal party. In every neighborhood they formed them into oath-bound secret societies, called Loyal Leagues. They were sworn to stand to gether. In these societies, from which the Southern white man was excluded, they were taught to regard the white men as their enemies, and that they would soon receive their property. Thus they were arrayed in antagonism to the whites. The work was done thorough ly, and by it you held political power in many States. But those States are crushed and ruined now. We cannot, we must not, go on in this direction. The welfare of our country calls for a change. Men must be placed in power who will relieve society from these dangerous influences ; who will stand honestly between the two races, and see to it that each is fairly and fully protected in its rights ; who will see that harmony, based upon justice, is restored, so that labor shall be secure, and capital shall not be afraid. The South is now being covered with troops. If General Grant would investigate for himself, I would not fear the result. In many respects I admire him. He is a man of great ability, and does not hate people merely because they oppose his corrupt party. Two years ago I said that we were fighting the " King " that controlled him more" than the President himself, and now we have to fear the bad influences that surround him. He will not investigate. He will take his information from the most malignant man in the country, the At torney-General. The men who are maintaining such baleful authority in the South crawl into the office of the Attorney-General, and do their work. It is a dreadful thing that our army must be used to perpetu ate a rule so hurtful to the whole country, such as prevails in South Carolina, Florida, Mississippi, and Louisiana. Whole communities and the business and production of the country are being played upon for political results. The welfare of the country calls for a change. SPEECH AT INDIANAPOLIS. 389 Let the sentiment be felt everywhere, from the palace of the capital ist to the cabin of the negro, that complete and exact justice shall prevail, and then all will once more bow to public authority. It was so once ; it may be so again. The party in power has failed. Let us not be led by hate to utter ruin. PUBLIC LANDS, FOKEIGN POSTAGE, ETC. The congressional address says, " Since the advent of the Bepub- lican party, the finishing touches have been given to our land system." That is nearly true. There may not be much more to grant. But Senator Pratt claims for his party the credit of the homestead policy. That measure was not carried by the votes of either party ; it was supported by men of both parties. But Andrew Johnson, whom they sought to impeach, was the real author of the measure. He was its earliest and persistent advocate in Congress before the birth of the Kepublican party. I understand that Senator Pratt also claims for his party the credit of securing the full right of naturalization and its recognition by European countries, and also the credit of cheap foreign postage. How can he make such a claim ? These important and valuable measures were not secured by legislation, but by treaties and the leading treaties were negotiated by Andrew Johnson, at a time when he was opposed by the party ; when the party hatred of him was so great that it pursued him by wicked impeachment. I voted to ratify the important treaties of that class. Senator Pratt was not then in the Senate. FKATJDTJLENT APPOINTMENT. I will ask your attention to some questions more immediately af fecting our State. At a special session of the Legislature of 1872, an unjust and wicked law was passed dividing the State into senatorial and representative districts. It was done to enable the party to hold political power in the Legislature against the majority of the people. Governor Baker would not sign it. No man ought to have voted for it. They now propose to appropriate and use the advantages of the crime by securing the reelection of Senator Pratt. The history of such nefarious efforts has generally been that they turn against the guilty party. How shall it be now ? "Will the people of Indiana be come a direct party to it by so voting as to give them the benefit of the wrong ? Let us see. That my motives may not be misunderstood in what it is my duty 390 THE LIFE OF THOMAS A. HEND RICKS. to say upon this subject, I wish to assure you that in no event can I have any personal interest in it. I am not and will not be a candi date for the United States Senate. I did not want to be a candidate for Governor, as many of you know, but I have accepted the office, and intend to hold it during the term. As we all have to obey the laws, it is fair and right, and by all hon orable men recognized as fair and right, that we shall have an equal voice in making the laws. But deeming it possible that, for party gains, some men might reject this sentiment of justice and right, our constitution has provided that the apportionment of senators and rep resentatives among the counties shall be according to the numbers of the voting population, to be ascertained by an enumeration every sixth year. The oath of the legislator to obey the constitution is, in this re spect, only to do what is just and right. The enumeration next before the passage of this law made the voting population of the State to be 379,088. The entire vote in Oc tober, 1872, just before the law passed, was 377,819. The difference between the enumeration and the vote was only 1,269. I will test the law by a comparison of the apportionment to the counties, with their vote. The entire vote of the State, 377,819, apportioned among one hun dred representatives and fifty senators, would give one representative to 3,778, and one senator to 7,556 voters. Lake County, with a vote of 2,444, which is 1,324 below the rep resentative ratio, has one representative. Porter, with a vote of 2,977, which is 801 below the ratio, has one representative. Steuben, with a vote of 2,793, which is 985 below the ratio, has one representative. Lagrange, with a vote of 2,867, which is 911 below the ratio, has one representative. Jennings, with a vote of 3,434, which is 333 below the ratio, has one representative. Yermilion, with a voteof 2,245, which is 1,533 below the ratio, has one representative. Warren, with a vote of 2,490, which is 1,288 below the ratio, has one representative. Lawrence, with a vote of 3,569, which is 209 below the ratio, has one representative. SPEECH AT INDIANAPOLIS. 391 Monroe, with a vote of 3,216, which is 562 below the ratio, has one representative. And Benton and Newton together, with a vote of 2,935, which is 843 below the ratio, have one representative. These eleven counties are strongly Republican, giving an aggregate Republican majority of 4,592, but they lack 8,799 votes to entitle them to the ten representatives given them. There are seven other counties which fall below the ratio in their vote, and are allowed each a representative, but the aggregate defi ciency is less than one representative apportionment. Bartholomew is a Democratic county, with a population of 4,761, which was 983 more than enough for a representative, but she was allowed none. Brown County is Democratic, with a total vote of 1,633. She was allowed no representative ; but she and Bartholomew constitute one representative district, with an entire vote of 6,394, being an excess of 2,616 over the ratio of representation, and such excess being more than the entire vote of either Lake, Vermilion, or Warren, each of which has a representative. Bartholomew is denied a separate representation, while Lawrence, with 1,192 less votes, Monroe, with 1,545 less votes, Vermilion, with 2,516 less votes. Warren, with 2,671 less votes, Lake, with 2,317 less votes, Porter, with 1,784 less votes, Lagrange, with 1,894 less votes, and Steuben, with 1,968 less votes, have each a representative ; and Jennings, an adjoining county, with 1,327 less, has a separate repre sentative and a representative j-ointly with Jefferson and Scott ; Deca- tur, with 355 less, and Rush, with 692 less, and Ripley, with 455 less votes, have each a representative and one jointly ; Grant, with 408 less, has one representative and one jointly with Blackford ; Delaware, with 461 less votes, has one representative and one jointly with Jay ; and Hamilton, with but five more votes, has one representative and one jointly with Tipton. Wells, a Democratic county, has 3,006 votes, being 554 more than Lake, 210 more than Steuben, 755 more than Vermilion, and 513 more than Warren, is allowed no separate representative, while each of the others has one. Wells and Adams, Democratic counties, are joined for one representative. Their aggregate vote is 5,137, being 1,400 more than the representative ratio. Brown and Bartholomew, with 6,214 votes, and Lake, with 2,444, have the same representation, which gives two men in Lake more than the vote and political power of five men in either Bartholomew or Brown. It is so also in Ver- 392 THE LIFE OF THOMAS A. HENDRICKS. milion and Warren, and nearly so in Porter, Steuben, and La- grange. The wrong is equally great in the Senate. Posey and Gibson, with 8,177 voters, have one senator, and Lake and Porter, with 5,421 voters, have a senator. Dearborn and Franklin, strongly Democratic, with 9,404, have a senator, and Elkhart, with but 5,892 voters, has a senator. Jefferson, with but 5,405, has a senator, while Clark and Floyd together, with 10,278 voters, have but one. Shelby and Johnson, with 9,024 voters, have a senator, and Parke and Vermilion, with but 6,164, have one senator. Adams and Wells, with unequal representation in the House, have no senator, except with Allen in a district of 14,989. Randolph, with but 5,014, has one senator, and Putnam and Hen- dricks, with 9,357, have one, which is controlled by the Republican majority of Hendricks. Bartholomew and Brown, with 6,394 votes, have one representative and one senator, while Lake and Porter, with but 5,421 votes, have two representatives and one senator. Why should one voter in Lake, Vermilion, Steuben, or Lagrange, have a voice in making the laws more than equal to two in Brown, Bartholomew, Adams, or Wells? Why shall these counties have so much more voice in proportion to numbers than Shelby or Johnson, Dearborn or Franklin? Is it because that same year Bartholomew was taxed upon more than nine million, Johnson more than ten and one half million, and Shelby more than ten and a quarter million, and Dearborn and Franklin each more than eight million dollars; while Lake was but three million six hundred thousand ; Vermilion four million four hundred thousand ; and Steuben loss than three million ? I do not wish to be understood as saying that this apportionment may be changed by the next Legislature. I think it is a grave ques tion Whether it must not stand until another enumeration is made at the expiration of six years from the last, as required by the consti tution. But the people may and should rebuke the outrage as a blow at popular representation and republican government. They should rebuke it by defeating its purpose, by preventing the misrepresenta tion intended. It is a gratification to me that, in my first address to the people as a candidate in 1872, in the expectation that the Legis lature would be Democratic, I said: " It will be the duty of the Leg islature to redistrict the State for legislative and congressional pur- SPEECH AT INDIANAPOLIS. 393 poses. Not only the constitution, but just and honest representation, requires that the apportionment shall be made among the counties according to their .voting population. It is a" shame if the people allow the adjustment of representation to be made upon any other basis. It is an aggravated fraud if some counties be allowed more, and other counties less, than their proportion of senators and repre sentatives because of the political opinions of their people. The apportionment of 1867 was thus tainted. Should the men who sup port me this year have the control of the Legislature, I hope they will be governed by the -constitution and justice only in making the new apportionment, for it is right, and it will prove politically expe dient and wise. For that my labor and my influence shall be given." I think you know that the corrupting sentiment has been growing, that unfair advantages are right in politics, and that private gain may be made of political success. I think you know that from that senti ment the corruption has come which is undermining our institutions. Then, need I specify the large sums of money of which the people were defrauded by the Sanborn contracts, by the Credit Mobilier, by the New York Custom-House frauds, so hurtful to our commerce, and so wrong to the merchants? Need I speak of the great fortunes built upon the District of Columbia corruption, and of the scores of investigations which the clamor of an outraged people compelled ? . Need I mention that for all these none of the guilty parties have been punished save only one old man expelled from the House ; while others have been rewarded by and now hold high and lucrative office? Why is it not enough to- turn to this unparalleled legislative fraud in our own State? Would you again trust a man who would corruptly wrong even an enemy ? Would you employ him in your store, or office, or shop, or on your farm ? Then how can you trust the affairs of Government in the hands of a party which requires its legislators to despoil a part of the people of their rights, and to be stow them upon others ? Do they not all equally pay taxes, and bear the public burdens? Why, then, shall some be robbed of their rights as citizens ? The industries and resources of the country will restore the millions lost by the frauds and corruptions to which I have referred ; but who shall restore to the people of many counties their lost privilege and right of an equal voice in making the laws which all must obey ? LEGISLATIVE EXPENSES. I will detain you to speak only of one other characteristic of the 394 THE LIFE OF THOMAS A. HENDRICKS. last Legislature. I speak of its own extravagance in the use of the public money. The general and special sessions continued one hun dred and one days, and the expenses were $19,9,563.32, as appears by the report of Mr. Glover, as Treasurer of the State, page 10. That includes only legislative expenses. It was at the rate of $1,976 per day. The Legislature of 1871 was in session only fifty-three days. The important measures and business of the session were defeated by the resignation of Eepublicans in the House, so as to destroy the quorum, and thus stop business. The breaking up of the Legislature was revolutionary in its character, and not justified by any public consideration, or sufficient reason in the- condition t of its business. That proceeding made the session of 1871 only fifty-three days, and the expenses were $82,520, as appears by Mr. Ryan s report, page 9. That was at the rate of $1,557 per day, and was $419 less per day than the expenses of the Legislature of 1873. But it is proper to add that the pay of members of the Legislature was increased at the special session from five to eight dollars per day. That increase of three dollars per day, for one hundred representatives and fifty senators, was $450 per day, but applied only to the regular session of sixty-one days. It amounted to $27,450, and, deducting that from the $199,563, leaves $172,113 as the expenses of the one hundred and one days, excluding increased pay, or $1,704 per day, which was $147 per day, excluding increased pay, more than the Democratic Legisla- . ture two years before. TEMPERANCE LEGISLATION. I think the Democracy on the 13th of October are expected to declare in plain terms what legislation you approve in regard to the sale of intoxicating liquors. My official duty places me in a respon sible relation to this subject. I signed the law now in force known as the Baxter bill, though -I thought some of its provisions unwise and impolitic. Before signing the bill, I examined it with all the care the time allowed would permit. I called to my assistance two of the ablest lawyers of the State, and I came to the conclusion that its pro visions were not in violation of the constitution. It was not a case of hasty or inconsiderate legislation. It was deliberately considered in both branches of the Legislature. Believing the bill to be con- stitutional, and that it expressed the deliberate judgment and will of the Legislature, it was my duty to sign it. I believe the veto-power is conferred to arrest unconstitutional and hasty legislation, and leg- SPEECH AT INDIANAPOLIS. 395 islation in derogation of fundamental and essential rights, such as the equality of representation, and not to enable the Governor to oppose his opinions to those of the people s immediate representatives upon questions of mere policy or police regulation. That law has not received the popular support necessary to make it efficient. It has encountered determined hostility on the part of those engaged in the liquor-business ; and for many months extreme temperance people, in a very extraordinary manner, have shown an unwillingness to abide by its provisions. Propositions will be brought before the next Legislature for the material modification or repeal of the law. "What legislation shall take its place ? Our Supreme Court has declared absolute prohibi tion to be unconstitutional, and experience, I believe, has shown it to be impracticable. It then only remains to regulate the traffic. Any useful law must rest upon the proposition that there are serious evils to society and to individuals connected with the traffic in intoxicating liquors which it is the province of the law to restrain and prevent. Sales should not be made to boys, and, if necessary to prevent it, the boy who misrepresents or conceals his age to obtain liquor should be punished as well as the party who knowingly sells to him. Drunkenness should be punished as well as selling to the intoxicated. All sales should be forbidden when the public peace or safety requires it, and, like other pursuits, it should be suspended in the night-time. Perhaps the hour now fixed is unnecessarily and inconveniently early, but society should be protected from the dis turbances and bloodshed incident 4 to the traffic in the middle of the night. I think it might properly be considered whether a difference in regulation could not safely be made for the sale of vinous and malt liquors, and the stronger and more intoxicating drinks. There is certainly a great difference in the evils that result from their use. THE LICENSE SYSTEM. With these and such other provisions as may seem reasonable and necessary, I think experience justifies the adoption of the license system. The amount required for the license in each case should bo greater than heretofore. It should be sufficient to make the party selling feel that his interest is identified with that of society in pre- serving order and good conduct at his place of business, and avoiding all violations of law. This policy will bring a large revenue into the 396 THE LIFE OF THOMAS A. HENDRICKS. school-fund, and will prove more efficient in suppressing the evils of intemperance than the present system. I cannot appreciate the ob jection that, by receiving a license-fe, society uses money received from an improper source. Under the present law the State grants a permit, and deelares the business lawful. Under a policy which we have long maintained, every violation of our criminal law that is punished by fines adds to the school-fund. No law upon this subject can be useful unless supported by public opinion in its favor. The wise legislator considers the weakness as well as the strength, the follies as well as the wisdom of man, and adapts the laws to his real wants and necessities. OQNCLUSIOlSr. We hear no more of the foolish cry that the Democratic party is dead. Stanch, strong, and earnest, it has its work to do, the pleas ing work of restoring good government, wholesome and equal laws, and universal harmony to a great people. It is cheered forward by the increasing respect and confidence of the people, as shown in the elections as they come on. When the day of complete triumph shall come, and the burdens and responsibilities of government shall rest upon its broad shoulders, Heaven forbid that the people shall be dis appointed in their just expectations ! CHAPTER III. SPEECH A^ ZANESVILLE. REFEEEISTCE has already been made to Governor Hen- dricks s support of William Allen in 1875. He went into Ohio to work for the Democratic ticket, believing that the success of the party was of greater importance than the mere differences of factions. On the evening of September 3, 1875, the Governor spoke at Zanesville before a large and enthusiastic audience. His address on that occasion was as follows : FELLOW-CITIZENS : I think the reelection of Governor Allen very important, and therefore, upon the invitation of your State Execu tive Committee, I stand before you to-day. I understand that it is quite customary to confer upon your Governors, whose administra tions are acceptable to the people, the honor of a reelection. Such a custom seems to be consistent with the public interest. The official term is so short that within its limit an important policy, or work, can hardly be established or completed. The honor of a reelection was conferred upon Governor Hayes. Why shall it be denied to Governor Allen ? I think I am safe in saying that his administra tion is acceptable to the people. It has been true and faithful to them. And toward its political opponents it has Been liberal, if not generous. Avoiding their spirit and practice of proscription and partisan hatred, it has not treated them as unworthy citizens and unfit to be trusted, but has allowed them to share in the responsibil ities and honors, as they do in the burdens, of the public service. Does Governor Allen not possess the personal qualities which you admire ? Is he not clear in his judgment to discern the right, and sincere to approve it, and strong and bold to maintain it ? Do you not know and feel that he is a fit representative of the giant great ness of your State, as he is of the stalwart statesmen in whose asso- 398 THE LIFE OF THOMAS A. HENDRICKS. elation most of his public life was spent ? You distrust neither hia judgment nor the purity of his motives. Why, then, shall he not receive the honor, and the State the benefit, of his reelection ? There is but one answer. The Republican leaders cannot afford it. It will endanger their hold upon power, and will loosen the grasp of the eighty thousand office-holders upon their rich emoluments. Al ready, from every quarter, they are upon you. Did you not see the circular address of Mr. Edmunds, the postmaster at Washington City, to the office-holders throughout the land for money ? I sup pose the congressional committee did not expect it to become public. The sums thus realized are enormous. A levy upon eighty regiments of office-holders will fill the party coffers to overflowing. To what uses is it to be applied? No national contest calls for universal bribery. Ohio is the object of attack, because she is powerful and influential, and will stand almost alone in October. To the full ex tent of the influence which your election will exert, you are in the midst of the national contest. So this question is precipitated upon you. Is it for the good and welfare of the people to continue the managers of the Eepublican party in uninterrupted and permanent control ? For many years they have held absolute control. In the spirit of cruel proscription they have excluded Democrats and Lib erals from all participation. They have had their own way absolute ly. And, according to all fair judgment, they carry the entire re sponsibility for our present condition. Our country is unsurpassed, if not imequaled, in material resources in the elements of great wealth. Our people are, in an eminent degree, energetic, intelligent, and industrious. Yet every interest languishes, and the people suffer. Frightened capital is concealed,- and labor stands upon the street- corners begging employment. Month by month the shadows grow and darken over the land. When evils become intolerable, the remedy of the people is in a change of administration. That is your policy, even in private life. You do not continue an agent under whose management your capital disappears and your debts increase. And even when you do not see the causes, and cannot locate the fault, you will organize a change before your ruin is complete. Your physician is not continued, al though he may have had your confidence, after you see that he is not prepared to contend with the calamities that threaten your fam ily. You will not sacrifice all your little flock to a former devotion. Of course, you know that the leaders propose no reforms. The SPEECH AT ZANESVILLE, 399 present policies and conduct of public affairs, in their judgment, reach the summit of human wisdom, and General Grant s Administra tion furnishes the world and coming generations the model to be imi tated and the example to be followed. In their speeches this year they say that, in respect to its efforts to promote the purity of the public service, it eclipses all Democratic administrations, and that no President has come out of the office clearer than General Grant. If so, it is plain that no change should be made. In their State plat form they declare to you that "because of the distinguished success of his Administration," President Grant is entitled to the gratitude of his countrymen. If, indeed, that be sincerely stated, and you real ly regard his Administration as separated from all others by its supe rior qualities and extraordinary excellence, then, as true men, you want no change in the conduct of public affairs, but you desire that as this Administration is, so its successor shall be. EEPUBLICAN FINANCIAL POLICY. But, before striking a blow at Governor Allen only to perpetuate the present conduct and policies, will you not carefully consider the same, and decide whether that be your real judgment ? Upon finance, what do you want your vote to mean ? Do you wish it to be an ap proval and indorsement of the policy of the Republican party on that subject? That policy is found in the act of the 14th of last January. Governor Morton informed the people of Ohio that it was the result of consultation and compromise, and that every Eepublican Senator, save one, voted for it, as did all the Republicans in the House, except a few from the Eastern States. No Democrat in the Senate voted* for it, and I am not aware that it received any Democrat s support in the House. In the speech at Marion, Mr. Senator Sherman declared" that he reported the measure, advocated and voted for it, and hearti ly defends and approves it ; that it was the result of the most careful deliberation ; that it definitely declares a public policy ; and that it is the fixed policy of the Republican party, " and no step backward." And now, as that act declares the deliberate purpose and fixed policy of that party upon a most important question, it should be accurate ly and generally understood. The first section provides for the sub stitution of silver coin for the fractional currency. The silver is not in the Treasury, and must be purchased. The special dispatch to the Cincinnati Commercial of the 14th of last month, says that the Secre tary of the Treasury will be obliged to sell between thirty and forty 400 THE LIFE OF THOMAS A. HESDRICKS. millions of five per cent, bonds for that purpose. The direct effect is to increase our interest-bearing debt about forty millions, and the annual interest two millions in other words, it is the conversion of a domestic debt, which bears no interest, into a foreign debt bearing interest. The silver coin, when so issued, will not be a legal tender beyond five dollars, and its depreciation below gold will be nearly, if not quite, as great as that of the currency which it is to displace. The second section repeals the law which allows a charge for coining bullion, and is proper. The third and remaining section removes legal restrictions and limitations, so as to allow free bank ing. It also provides that, upon the issue of bank-bills to the banks, the Secretary of the Treasury shall redeem legal-tender Treasury notes to the extent of eighty per cent, of the bank-bills so issued, until the volume of the legal-tender Treasury notes outstanding shall be reduced to three hundred million dollars. The effect of that pro vision is to substitute national-bank paper for legal-tender notes to the extent of about eighty-two million dollars of the latter. The section then provides that " on and after the first day of January, Anno Domini eighteen hundred and seventy-nine, the Secretary of the Treasury shall redeem in coin the United States legal-tender notes then outstanding, on their presentation for redemption at the office of the Assistant Treasurer of the United States, in the city of New York, in sums of not less than fifty dollars." Thus, by the process of redemption and substitution, all the legal-tender notes are to be taken from circulation, and the currency of the country is to be coin and bank-bills. In other words, it was intended to give the na tional banks the entire field, notwithstanding the same Congress, in the month of June before, had given the country the assurance that the legal-tender circulation should remain at three hundred and eighty-two millions. Such was the construction given to the act of June, 1874, while it was pending in the Senate. I have given you the language of that provision of the act requiring the Secretary of the Treasury, on the first day of January, 1879, and thereafter, to redeem the legal-tender notes " then outstanding," because it had been stated to the people of Ohio that " the bill provided that the greenbacks should not be retired so as to leave less than three hun dred millions in circulation." From the language of the law you will perceive that all the legal-tender notes that are not displaced by bank-bills are to be redeemed and taken out of circulation. Do you wish your vote to approve this measure and fasten it upon the coun- SPEECH AT ZANESVILLE. 401 try ? I was called upon to preside over the Democratic Convention of Indiana last year. In my address to that body, upon this subject, I said : " Our paper currency consists of Treasury notes, declared by Congress to be lawful money, and national-bank notes. I am not in favor of the policy that proposes to retire the Treasury notes to make room for an increase of national banks and their paper. The Treas ury notes are the cheaper currency to the people, and command pub lic confidence. They are not irredeemable. For their value they rest upon the pledge and conscience of the country. The relation between the holder and the Government is direct. The people are not required to pay interest upon national bonds deposited as the basis of their security and value, as in the case of bank-notes. Pass ing everywhere, and without question, they are the favorite and pop ular currency." I ask your very careful consideration of the last provision of the act. It would have been idle, as well as vicious, for Congress to direct the Secretary of the Treasury to redeem the legal tenders in coin without making provision for the same. To meet the necessity the act provides : " And to enable the Secretary of the Treasury to prepare and provide for the redemption in this act authorized or re quired, he is authorized to use any surplus revenues from time to time in the Treasury not otherwise appropriated, and to issue, sell, and dispose of, at not less than par, in coin, either of the descriptions of bonds of the United States described in the act of Congress ap proved July 14, 1870, entitled An act to authorize the refunding of the public debt, with like qualities, privileges, and exemptions, to the extent necessary to carry this act into full effect, and to use the proceeds thereof for the purpose aforesaid. And all provisions of law inconsistent with the provisions of this act are hereby re pealed." At the passage of this act, there was outstanding, as I suppose, $382,000,000 of legal-tender notes, as provided in the act of June, 1874. Should the $82,000,000 be retired by the substitu tion of bank-notes under the first section, then there will remain $300,000,000 to be redeemed with gold. It is not probable that the $82,000,000 will be entirely displaced by bank-notes. If not, an ex cess of the $300,000,000 will remain for redemption in gold. That excess will probably equal the surplus revenues in gold that the Secretary will find available for the purposes of the act. I suppose it may, therefore, be assumed that the Secretary will be required to sell five per cent, bonds to meet $300,000,000 of Treasury notes. The 402 THE LIFE OF THOMAS A. HENDRICKS. immediate and direct effect of the measure will be to increase our debt-bearing interest $300,000,000, and an annual interest of $15,000,- 000 in gold. If we add the $40,000,000 of bonds that must be sold to buy silver to displace the fractional currency, we have, in this meas ure, an increase of the interest-bearing debt of $340,000,000, and of the annual interest of $17,000,000 in gold. The bonds will be sold in Europe. This Administration conducts all such transactions through a European syndicate, or combination of banks. Thus the debt will be a foreign one, and will add $17,000,000 to the enormous annual exportation of gold to meet interest. What consideration of obliga tion or of good policy can support this measure ? In the mids t of a financial crisis so serious as to disturb the foundations of our pros perity, we are to add this large sum to our foreign debt. Why is it done ? The $382,000,000 of Treasury notes are held exclusively by our own people. It is a domestic debt. The holders are not asking its redemption. For the present they want it to remain circulating among them as " lawful money." The Treasury notes were issued as legal tenders at a time when they were supposed to be essential to the maintenance of the public credit. It was deemed expedient to issue a portion of the Government s credit in the form of currency ; and, therefore, the Treasury notes bear a double character. They are at once the evidence of a Government debt and are a medium of commerce, a debt to be paid and legal tenders to be used. They were so issued by the Government and so accepted by the people. No time was fixed for their redemption. The people received them, leaving that to the pleasure and conscience of the Government. In the mean time they have been used as money. Then, in accordance with the purpose of their issue, should they be withdrawn so as to injure busi ness or labor until as good or a better currency can take their place ? Every obligation of the Government must be met and discharged. "Whoever questions the fidelity of the Democracy to the country s honor in that respect speaks without regard to truth. I full recog nize the obligation for the redemption of the Treasury notes, but I can not feel that it must be discharged at a time when it may seriously add to our embarrassments and when the people who hold them do not desire it. In our present condition, any addition to our foreign gold obligations is a calamity. Will you vote to convert this domes tic, non-interest-bearing debt into a foreign, interest-bearing gold debt? In this statement I have made no estimate for the sale of bonds and increase of interest debt, which may be necessary to enable the SPEECH AT ZANESVILLE. 403 Secretary to redeem the $82,000,000 legal tenders, which are to be displaced as bank-bills issue. It is now my duty to call your attention to other probable conse quences of this measure, more frightful than those which I have ex posed. As the time for the redemption of the Treasury notes in gold approaches, and the Secretary prepares for their redemption by the sale of bonds and the accumulation of gold in the Treasury, they will rapidly advance in value. During the period of two years before the redemption commences, persons who are able to hold money out of active use will accumulate and retire the Treasury notes for the profit of their increasing value. The banks are permitted by law to redeem their bills in Treasury notes. So long as the bills and notes are about the same value, the bills are not presented to the banks for payment. But as soon as the Treasury notes advance in value they will be presented for payment. The banks will anticipate that prob able result, and will prepare for it by hoarding the Treasury notes for the redemption of their paper. The probable consequence will be, that under these influences the Treasury notes will, for a consider able period of time, be withdrawn from circulation, and our currency will be contracted to nearly one-half its quantity. As rapidly as the Treasury notes are used in the redemption and retirement of the bank-bills they will be presented at the Treasury for redemption in gold, and will disappear forever. I know it is said that, as soon as it is established that they are redeemable in gold, they will not be presented, as they will then be as- good as gold. To some extent that would be true in a time of established composure and confidence, but that will not be the condition of our country while this law is being executed. Do you not present your negotiable paper at maturity, merely because you have confidence in the ability and willingness of your debtor ? How long do you think the gold paid out in the re demption of the Treasury notes will remain in the country ? Will it pass along the veins and arteries of business, and give life and en ergy? In a time of general confidence it might be so, but not while this law is being executed. Public confidence and financial stability cannot be made to rest upon borrowed gold. This measure will in crease our gold obligations abroad, and, because of contraction, will reduce production at home. This flow of gold abroad will continue, and the borrowed gold will soon be gone. In this presentation of the subject I have not considered the pos sibility of any extraordinary foreign demand. Any great, financial 404 THE LIFE OF THOMAS A. HENDEICKS. crisis abroad, or disturbance of the peace of Europe, would cause our bonds to be thrown upon our market in large quantities, and a cor responding draft upon our supply of gold. I do not believe we can rely upon this measure for any supply of gold to our domestic cur rency that will be permanent or useful. Substantially our reliance for a currency must be upon the banks. Will they be in a condition to supply it ? The retirement of the Treasury notes will leave them under the obligation to redeem in gold only. Can they meet that obligation? And, with the known uncertainty in the supply of gold, will they venture to throw their paper upon the currents of trade in quantities at all adequate to the demands of legitimate business? The act permits free banking, and the bills are yet redeemable in Treasury notes. What has been the result ? The statement of the Comptroller, made on the 6th of July, shows that since the passage of the law, January 14, 1875, to the 1st of July, nearly half a year, the increase of bank currency is but seven thousand five hundred and fifty-eight dollars. Does this statement justify the opinion that, after the Treasury notes have ceased to be available for redemption, the banks will venture their paper upon the disturbed currents of busi ness? I believe the financial policy of this Administration, and of the party which supports it, as expressed in this act of Congress, will so contract the currency as to paralyze all legitimate business, and leave labor in rags begging for employment. I know the opinion is entertained for I have heard it expressed by many that the law is so clearly impolitic that its execution will not be attempted. Did the President, in his first inaugural, not say that all laws should be executed, whether they met his approval or not? But the law is now being executed. Many millions of dollars of the bonds have already been sold to provide the means for the retirement of the out standing currency. Is this terrible blow to fall upon the industries of the country ? Ohio stands in the van. She should make her great strength so felt that even Senator Sherman, who reported the meas ure, will respect it in a movement for repeal. If Governor Allen be elected, I believe it will be repealed, so great is the power of the peo ple. But Senators Sherman and Morton, in their key-note speeches, declared to the people of Ohio that this is the party policy to be approved and stood by. May it not well be claimed that Governor Allen s defeat is its approval and indorsement by the people? Will you, then, expect the Senate to consent to its repeal? However earnest we may be for a return to specie payments, we cannot wish SPEECH AT ZANESV1LLE. 405 to reach it through universal bankruptcy and a frightful increase of our foreign public debt. Because of my strong belief that this measure is fraught with calamity to the commercial interests, to the industrial pursuits, and to the labor of the country, I have responded to the committee s invitation, without reference to many other ques tions that may be discussed among you. Have you considered the reasons which Senator Sherman says controlled his party in passing this law ? He himself wanted another measure, whether better or worse than this I need not consider. He wished to fund the Treasury notes until the residue should be at par with gold. By how great a contraction neither he nor I can say. How destructive to business no one can say. Probably the country would become strewed with broken fortunes, and the highways filled with wretched men seeking employment. His party friends would not agree to it. He says they had gone into the canvass of last year with divided counsels, and the result was defeat. When they met last winter they were taught by the defeat that the party in power must agree upon some measure, and the result was the passage of this law. It is a strange statement confession, I may say that a law affecting every interest of the people was the child of party necessity. Will you adopt it, and rear it, that it may destroy you ? Your decision will be in your vote. SPECIE PAYMENTS. Having stated my objections to the last-developed financial policy of the Administration and its party, I ask your permission to read what I said to the people of Indiana last year in respect to specie payments: "The expression in favor of a return to specie payments is very general, but the real question is, When and how can that be accomplished ? So long as the supply of coin is so small, as com pared with the paper-money, it is impossible. The effort now would probably result in commercial disaster. The people so believe. No sentiment attributed to Mr. Greeley in 1872 was more hurtful to his political fortunes than the demand for immediate specie payments. To render it possible, without hurt to the country, coin and paper must come nearer together in quantity. They will then be nearer, if not uniform, in value. How shall that be brought about? By reducing the paper currency? With the present burden of national, State, and local taxation, and the large volume of other indebtedness to be provided for, that cannot be borne. It would cramp business and paralyze labor. No one desires a return to specie payments 406 THE LIFE OF THOMAS A. HENDRICKS. more earnestly than myself, for I believe gold and silver are the real standard of values, universal and permanent. As I had occasion once before to say, the existence of commercial mediums of different values one description of money for one class and purpose, and an other for a different class and purpose is too serious an evil to be long endured. All the money of the country should be of uniform value, and readily convertible. But we are not in that condition. Our paper-money exceeds the coin by nearly five dollars to one. How shall we bring them nearer together in quantity, that they may approach and meet in value ? Shall we commence at the top and tear down, or at the bottom and build up? Business, enterprise, and labor, every important interest of the country, demand that the vol ume of the currency be maintained to meet their requirements ; but every interest will be strengthened by increasing the supply of coin. How is that to be accomplished? By encouraging an increased pro duction of our great staples that command the foreign market; by reducing our expenditures in foreign purchases ; and by reversing the fatal policy which has sought to make our debt a foreign debt. "When we purchase less of foreign goods, and sell more of our pro ductions abroad, and cease to pay so much of the interest on our debt abroad, and pay it to our own citizens, the current of gold will turn toward our shores, and then specie payments will be certain, natural, and permanent, and will become the basis of an enduring prosperity. As soon as the business of the country and the condi tion of our European trade will justify the opinion that gold is ac cumulating, and is likely to remain, Congress may safely fix the time and provide for the redemption of the Treasury notes. When I addressed these sentiments to my fellow-citizens of In diana a year ago, it did not occur to me that there was a statesman ship beyond and above all I had thought to be found simply in bor rowing gold, increasing our national debt, and the ever-recurring payment of interest abroad. I had supposed that our ability at all times to redeem the paper currency in gold depended upon a perma nent as well as a sufficient supply. I had thought that gold brought into the country, under the influences of increased production and commerce, would remain, but that borrowed gold would not stay. My confidence is in the development of the resources of the country, in its increasing and extended productions, and in the stable laws that regulate trade and commerce, rather than in temporary and arbitrary devices by Congress. More than once during the war, SPEECH AT ZANESVILLE. 407 under tho lead of Senator Sherman, Congress undertook to regulate transactions in gold, with a view to controlling its price, and you recollect how foolish and abortive all such attempts proved to be. KEPUBLICAN OBSTEUOTION8 TO EESUMPTION. . The party that now seeks continued power is responsible for the two great impediments in the way of resumption. By strange and questionable devices, they have sought to make our debt a foreign in stead of a domestic debt. The consequence is, that every pay-day large sums in gold are sent abroad to pay interest-coupons. The red blood flows from the veins and arteries of the country. Ireland was impoverished by her landlords, who expended their rents abroad. Cheap Chinese labor eats at the vitals of our prosperity on the Pacific coast, so long as their wages are sent back in gold to China. The farmer grows poorer every year who returns no nourishment to his fields. To our State Convention last year I made this statement of the second impediment: "Cotton and tobacco are the most impor tant staples in our exports, at some times exceeding all other com modities. Since the close of the war it has been the suggestion of wisdom to encourage their production in the largest possible quanti ties, as it had been the dictate of humanity, Christianity, and patri otism, to promote reconciliation and harmony between the sections. But political and partisan interests have been made paramount to humanity and the welfare of the country. Bad governments have been established, and as far as possible maintained, in the South. Intelligence and virtue have been placed under the dominion and ser vitude of ignorance and vice. Corruption has borne sway; public indebtedness has become frightful, and taxes too heavy to carry, and development crushed, and enterprise manacled. In a word, it has been the government of hatred J and all this, that party might bear rule." They have nourished the noxious plants of corruption, vio lence, and fraud in Louisiana, and other States, rather than the cot ton-plant and sugar-cane. Agriculture cannot flourish under bad laws, corrupt administration, and cruel taxation. I suppose it is entirely clear to your observation that, had State authority been respected in accordance with the Constitution, and the people been left in the control of their domestic affairs, without prej udice or denial of right to any class, in accordance with the Consti tution, greater harmony would have prevailed between the races, prosperity would have returned to those communities more rapidly, 408 THE LIFE OF THOMAS A. HENDRICKS. and the production of the great staples would have been much more abundant. Then our valuable materials of export would have been in larger supply, and, as a consequence, our supply of gold more reliable and permanent, and specie payments nearer a possibility. Individual happiness and the general interests of the country have been sacrificed to party policy. Harmony based upon justice, and the protection of the rights of all classes, must be restored. Pros perity will follow, as pure water flows from a pure fountain. The general paralysis of business and employment, and the dis trust of useful investments because of shrinkage in values, as well as the condition of our currency, have brought about differences of opinion among Democrats. I think these differences may be ad justed. I have heretofore expressed the opinion that a wise states manship may avoid the extremes of a contracted currency, cramping enterprise and labor, on the one hand, and of an inflated and depreci ated currency on the other ; that they are the extremes of gluttony and starvation, and that health and strength will come of neither. I have an unshaken confidence that the national council of our party will so adjust these differences as to maintain our ancient doctrine in favor of a sound and stable currency, and of policies in accordance therewith, and with a return to specie payments always in view, and at the same time avoiding the disasters which would inevitably fol low contraction. EXTRAVAGANT EXPENDITURES. As connected with and having a very important influence upon the business and financial condition of the country, it is my duty to call your attention to the extravagant expenditure of money by the General Government. The last report of the Secretary of the Treas ury shows that for the year ending June 30, 1874, the " net ordinary expenditures, exclusive of the public debt," amounted to $285,738,- 800.21. The interest paid that year on the public debt was $107,- 119,815.21 ; the amount paid on pensions, $29,038,414.66, making together $136,158,229.87. Deduct the interest and pensions from the net expenditures, and there remains $149,580,571.34. That sum represents the ordinary payments for one year, after deducting everything that resulted from the war. I have seen it stated that the expenditure for the same purposes during the last year amounted to about $145,000,000, but I am not able to speak accurately, as the Secretary has made no report of that year. Before the war the ordinary expenditures were from fifty to sixty millions, sometimes SPEECH AT ZANESVILLE. 409 going above that, because of extraordinary demands. Do you not think two dollars for one, or about one hundred millions, ought to be sufficient ? Yet they now require nearly three to one. Favoritism always costs the people heavily, but- it seems strange how pretexts can be found for $150,000,000. Will you vote to indorse such expen ditures ? VICES IN THE PUBLIC SEEVICE. Closely connected with the extravagance is the immorality which pervades the public service. This, too, calls for your attentive consideration and your sincere efforts at reform. It impairs your revenues and disturbs public confidence. Need I particularize ? It is known to you, at least in part. What department is free from taint ? In the Post-Office Department it extends from the conspir acy to defraud the Government in the mail-lettings, involving im mense sums, down to the petty pilfering in the repair of mail-bags in the neighborhood of the post-office at Indianapolis. The Treas ury Department has been singularly unfortunate. During the four years in which Mr. Guthrie was at its head there were no defaults and there was no money lost ; but of late years long lists of default ing officers have been published, and recently large ^numbers of officers in the Internal Revenue Service- have been detected in com plicated, and enormous frauds. The Department of Justice, under the management of the late Attorney-General, became the instru ment of injustice. Cruel in its political prosecutions and unscrupu lous in the use of the public money for political purposes, it became the object of general suspicion and distrust. Arkansas and North Carolina were the scenes of its most audacious misappropriation of money. Will it be proper for me to speak of the Interior Depart ment? An Ohio man is at its head. I will speak of the Indian service only. In former Administrations the entire cost of that ser vice was but about $3,000,000, when the Indians were more numer ous than now. During Mr. Lincoln s Administration that was about the cost of the service. In his message of December, 1863, he says that for the prior year the payment on account of pensions and Indi ans amounted to $4,216,520.79. I suppose the pension list was then something above one million, leaving the Indian -expenditures three millions. The last official report shows the expenditure for the In dian service alone $6,692,462.09. It has more than doubled. For improved administration you would pay more money, but where are the fruits of the large expenditure ? Both the Government and the 18 410 .. THE LIFE OF THOMAS A. HENDRICKS. Indians are cheated in the quality and quantity of clothing and food furnished, and in the false accounts that are allowed and paid. An army-officer stationed last winter at the Ked Cloud agency thus de scribes the situation and scene: "The Indians are all quiet now. The poor wretches have been several times this winter on the verge of starvation through the rascality of the Indian ring. They have been compelled to eat dogs, wolves, and ponies." Did you read the description of the dramatic scene in the Interior Department on the first day of last June, as given in the dispatches ? It illustrates the policy and style of the department. They wanted the Black Hills country. The Indians were brought in for negotiation. On that day they were in the Secretary s room. The Secretary was there A bishop was -by his side. The Indian Commissioner was there also. Twenty- five thousand dollars were offered them for the Black Hills. They did not want to leave that hunting-ground. They were reminded of the desire of the whites for the country, and of the difficulty of keep ing them out. The Secretary then told them that if they did not take the $25,000. in thirty days, they might not get it at all. In the agony of his soul the chief, Ked Cloud, cried out: "Great Spirit, hear me I have njercy upon me, pity me!" Was ever such a prayer uttered within those walls before? In these years of Indian mis management, too corrupt and cruel to be described, the Indians are "becoming more treacherous and the borders more insecure. What say you, my countrymen, to a return to such a policy as Jackson main tained, when the Indian was made to obey the authority of the country and the white man to respect the rights of the Indian ? I will only refer to the late shame brought upon the departments by the de-- veloped frauds connected with the Marine Corps. These are all recent transactions. They yet remain for congressional investigation. THE DISTEICT OF COLUMBIA. I will not weary you even by a reference to the notorious and enormous frauds that have been investigated during the past few years, except that in the. District of Columbia. That cannot be omitted, because it was in our national capital, and brought special disgrace upon the whole people, and because, in respect to it, the party has entered a plea of guilty. In 1871, the District of Colum bia was placed under a new form of government. The Governor and many officers, and one branch of the Legislature, were appointed by the President, and the other branch was chosen by the people. The SPEECH AT ZANESYILLE. 411 opportunity to maintain good government was most favorable. It was immediately under the eye of the President and his cabinet, with a party so strong as to exclude all opposition. They had their way, and developed their tendency. Corruption and .favoritism soon had sway, and in three years the debt of the District exceeded $20,000,- 000. The burden became too great for the party. Before the world it was admitted that, with officers appointed by the President and elected by the party, they could not maintain free and pure govern ment. They abandoned it, and, in the spirit of Home s government of her conquered provinces, they placed the District of Columbia under the control of three commissioners chosen from distant parts of the. country. Free and representative government fell before cor ruption in the capital of our country, and it stands as an humiliating admission to the world. What answer is made to the people when they complain of this most extraordinary condition of the service ? Will this plea for the party be received, that,. considering the magni tude of the service, there " never has been a period in the history of the Government when there has been less fraud or peculation, or as little as now? " There are old gentlemen who hear me to-day, whose memories go back to a better time; to a period -when there was such pure statesmanship, and such exalted official integrity, as inspired the world with a higher confidence in free republican institutions ; to a period when one single case of default aroused the indignation of the whole country, and precipitated the downfall of an Administration. What say you to the oft-repeated apology that they are active and zealous in detecting, pursuing, and punishing criminal officials ? Their zeal and activity may be admitted, for there is so much to do. But, when they suppress fraud in one quarter, it breaks out in another. In that respect, the body politic, under their treatment, 4 seems to be like the body of a man whose follies and vices have brought upon him disease which pervades his whole system. If, by the skill of the physician, it be subdued in one part, it soon appears in another. But the statement that they punish their guilty must be denied. Who has been punished ? There was the case of a paymaster at Washing ton City, who, for the embezzlement of above $400,000 of the public money, was tried by court-martial and sentenced to the penitentiary, but President Grant pardoned him within a year, and the money was never returned. On the contrary, how many partisans, implicated in transactions which the people have condemned, have been pro moted to high offices? The Tweed defense has served them well. It 412 THE LIFE OF THOMAS A. HENDRICKS. matters not how many official criminals there may be, Tweed is set off against each. Tweed s mantle has fallen over and covered from sight more crimes than any mantle that ever fell from human shoul ders. Are you, honest gentlemen, not tired of that trick ? Why not let every man, rogue or s#int as he may be, stand in his own shoes and be judged by his own conduct ? CHANGE THE ONLY KEMEDY. Do you not perceive, my fellow-citizens, that for all public evils your only remedy is in a change of Administration ? This you know, that when a party has been long in power and controls great patron age and large sums of money, all adventurers and those who seek to make money out of politics work their way, not only within its ranks, but into positions of influence and party control. Naturally enough, they become active managers, giving their money liberally, and by- taking charge of primary elections and conventions they control, in many instances, the nominations. Their hold is hard to break, and it becomes the interest .of politicians to conciliate rather than to fight them. That is the reason, as I suppose, why it is so difficult, if not impossible, for a party to. correct abuses and evils within its own organization.. That you are convinced there should be a change of national Ad ministration, I cannot question. Such changes are made upon assur ances of better conduct, and of measures more consistent with. the interests of the people. You may be misled, but in all efforts at re form we must trust each other somewhat. Deceived, disappointed, and dissatisfied, will you avail yourselves of your only remedy ? I appreciate the fact that former convictions, prejudices, and associa tions, stand in the way of thousands of good men, whose sympathies are with the Democracy and Liberals upon the pending questions. I cannot doubt that their present convictions in respect to the welfare of the country will control their action. They know that, even in times of the most bitter conflict, they respect many of the sentiments of our party, especially those in earnest sympathy with the interests of the masses of the people. They cannot and will not remain sepa rate from the organized body of men that will give these sentiments practical force and meaning. They know that our principles will endure and bring practical results. May I quote myself in saying that "organizations maybe broken and pass away, but Democracy cannot die. It is endowed with the immortality of truth and right. SPEECH AT ZANESVILLE. 413 "Wherever, in all lands, men aspire to higher, freer, better govern ment, and purer liberty ; wherever there is the sentiment that govern ment is made for man, and not man for government, there is the spirit of Democracy that will endure and yet achieve man s enfranchise ment and elevation." He was a great man who said, " There can be no free government without a democratical branch in the constitu tion." May I not add, " There can be no free policies or adminis trative measures, promoting popular rights, without the democratical element and sentiment ? " On all questions of state policy, Mr. Hendricks, during his public career, has shown a thorough and masterly knowl edge. There is perhaps no one matter upon which he has been more solicitous than the school-system of Indiana. As a member of the Constitutional Convention, he was active in securing ample provision for popular education, and placing its support beyond the vicissitudes of politics. Impressed with the value of the work then accomplished, he has since repeatedly insisted upon the most anxious watchfulness over the growth and perfection of the system, and relaxed in its favor hi s Democratic prejudices toward strict construction and economy. This subject Mr. Hendricks touches upon in his letter of acceptance, and sets forth his views in a statesman like manner. Of THE * OF "RHyfe! CHAPTER IV. SPEECH AT PHILADELPHIA. the fall of 1875 Governor Hendricks accepted an invitation to speak in Philadelphia, under the auspices of the Americus Club. His address was delivered on the evening of Friday, October 22d. It was a superior effort, and won for the Indiana statesman many warm admirers in the City of Brotherly Love. The speech is appended : ME. PEESIDENT AND FELLOW^ CITIZENS : In my visit to your great city, I had no purpose of participating in the political contest that is in progress in your State. 1 came here upon the invitation of the merchants of your city, to see what progress had been made in the preparations for the great celebration which is to take place next year. From the time that Congress announced the fact that next year would be celebrated as the one-hundredth of our independence and establishment as a nation, my interest in the success of your celebration has been most sincere and heart-felt; and when a dele gation from a portion of the country from which I come prepared to visit you with a view to ascertaining whether that celebration was likely to prove a great success, I cheerfully joined them, and appeared in your city, not for the purpose of discussing politics, but in order that I might give any help of which I might be capable toward the celebration of the great event which is to commemorate the estab lishment of free government in America. [Great applause.] In In diana, we, who have been very earnestly in favor of the success of the celebration, have encountered one serious difficulty, and I allude to it in this connection, inasmuch as it has a direct application to your city. On the part of some of the people of the West, there has been a sense of distrust and apprehension lest the Exhibition would not be honestly managed in the city of Philadelphia. And why? Because it has been understood out in our part of the world SPEECH AT PHILADELPHIA. . 415 that in the city of Philadelphia there was no longer honesty in pub lic affairs, and especially was it understood that there was no longer honesty in your elections ; and so it has" come to be an injury to Philadelphia, that in respect to her elections she should be known as a city in which the manipulation of the ballot-box, rather than the comparative merits of opposing candidates, decides the result. Phil adelphia should vindicate her right to recognition as a city of hon est government, because she had her birth under influences of the most exemplary character, and such as were calculated : to insure in tegrity in respect to every public matter. A society preeminent for integrity of purpose and uprightness of character laid the foundations of Philadelphia s greatness, and I deem it to be the paramount duty of the Democracy and the Conservative men of Philadelphia to re establish for this great city a reputation for integrity in everything that affects the public welfare. [Cheers.] Allow me to say one thing further on this subject. The character of Philadelphia in re spect to the integrity of her elections is not a matter which con cerns Philadelphia alone ; this great city reaches out in, her influence and in her commerce, clear to the distant State from which I come. You have your commercial and business relations with the Great West ; and throughout the Great West we have a pride and an interest in the honor and fair fame of this mighty municipality ; and now, when the main effort of the Democracy is to restore honesty in all the departments of the public service, city, State, and national, it seems to me proper that I should suggest this consideration in intro ducing my remarks. I am gratified now to believe, as I do, that the Centennial celebration is in honest hands, wholly separate from cor rupt influences, and that it merits public confidence. For the first time in the history of our country, a political party has dared openly to avow its purpose of carrying the elections by the use of money. All of you have doubtless seen in print the letter is sued by Mr. Edmunds, the Postmaster of Washington City, who is also the. Secretary of the National Republican Executive Committee, in which that official calls upon all the office-holders of the United States to contribute money for political purposes. Eighty thousand office-holders have been called upon, and I dare say have responded to the call. Indeed, that their responses were promptly made will not be doubted, when it is reflected that that call meant "your office or your money." It is almost identical with the highwayman s de mand, " Your money or your life," and so the money was contributed. 416 THE LIFE OF THOMAS A. HENDRICKS. Primarily it was to be used in the mighty State of Oliip. It was used there, and with what result is known to all of us. The tremen dous contest shook the Great West, for it was a contest between free men and money. [Long-continued cheers.] Money won it by four thousand, but it is the last victory it will ever achieve in the West. [Boisterous approbation.] And how is it to be in Pennsylvania in this great State ? Is money or truth the stronger ? The Democracy rely upon the force of truth ; the opposition upon organization, upon the influence .and power of office, but more especially upon the power of money. We read that centuries ago an Eastern monarch decided a debate that took place before him by awarding the reward of the victor to him who contended that of the three great controlling in fluences, money, woman, and truth, the last mentioned was the strongest. That was far back in the world s history, and now, when under the refulgent light of the nineteenth century we olaim to be living in a higher civilization, how is the same controversy to be determined ? Is money or truth the stronger in this free land of ours? How does this debate stand before the people of Pennsylvania ? For many years a great and powerful political party has held the control of national and State affairs. In the Congress of the United States it had a majority which defied the presidential veto and de fied the influence of the vote of the Democrats. They have controlled and fashioned politics in this State, where they controlled the public appropriations. How is it, then, when they come before the intelli gent people of Pennsylvania? Shall they continue in this power? Or shall they render an account of their exercise of it in the past? Who says the Democracy are on the defensive in this great argument? We have not been in power, and. could not control the public policy. They have ; and for whatever consequences have followed from their policy they are chargeable. A few years ago they claimed that their policy was beneficial; that the currency was. good in all parts of the country ; that high wages prevailed and labor was productive ; that everything was prosperous, and that they were entitled to the credit. This was the result, they said, of Republican government and admin istration. But as they claimed the reward for prosperity then, so now, when we are surrounded, not by prosperity, but by adversity, they must, by all fair reasoning, be held responsible. And let them account for the condition in which we find ourselves. Why. is it that labor seeks employment instead of employment seeking labor ? SPEECH AT PHILADELPHIA. 417 Why is it that the products of the country seek a market instead of the market seeking the products ? "Why is it that in every part of this great country hard times are pressing close upon every family except in particular classes ? And this, too, in a country such as no other people can boast, when every acre of soil is productive, when we ought to be all prosperous. Why are we not prosperous? Let the Republican managers who ask a continuance in power answer that question. Before they can take another step in advance, they must satisfy the people that they have honestly and fairly cared for the prosperity of the country. Have they made that answer ? In the city, State, and nation, have they shown their responsibility for the expenses being so great, ay, enormous why it is that taxation is so burdensome, the earnings of labor so contracted? Let them answer that question before they demand a continuance of power. There are some questions which should be answered now not as if the Democracy occupied in this controversy a defensive position, but upon the fair argument that the party which has had the power must respond to the people for the manner in which that power has been exercised. In respect to the finances of the country, I have a little to say to you to-night, not with reference to any policy of the Democratic party when that party comes into power it will be its mission to pro mote business and enterprise by a good currency, sufficient for the country s business [applause], ~by a good currency [cheers] ; but the question to-night is, What is the policy of the Republican party in respect to the finances of the country? and that policy, in my judg ment, is found in two acts of Congress. The first of these, passed on the 14th day of June, 1867, provided for free banking ; but at the same time it provided that the greenback currency should remain at three hundred and eighty-two millions of dollars ($382,000,000). When the debate upon that bill was progressing, a distinguished Sena tor announced to the Senate that the fair construction of the measure would be, that there was to be no reduction of the greenback cur rency below $382,000,000 ; and that statement was made by a Sena tor from my own State a Republican Senator. They passed the bill, and the country acquiesced in it, in the belief that that law, especially for the time, did fix the greenback currency at $382,000,- 000. But before eight months rolled around a new measure was introduced into the Congress of the United States a measure con trary to the policy of the act of 1874. I speak now of the act of the 418 THE LIFE OF THOMAS A. HENDRICKS. 14th day of January, 1875, commonly known as the resumption law a law providing for a return to specie payments. I have a little to say to you in respect to that law. It received the vote of .every Re publican Senator except one. Every Democrat in the Senate voted against it, and I believe every Democrat in the House also voted against it. It was a square party issue. And why, I ask you, was it adopted ? We find the answer in a speech that was made in the State of Ohio, very recently, by Mr. Senator Sherman, chairman of the Finance Committee of the Senate. He stated in his speech, in opening the canvass in Ohio, that the act of January last was passed because the fortunes of the Republican party required it. He stated in that speech that a year ago the Republican party went into the contest in all the elections in the country without any policy upon the finances, and that they were beaten all along the line, and that, when they met in Congress the following session, they had been taught by those defeats the necessity of having a policy, and so they decided upon this bill as the policy of the Republican party ; and Mr. Sherman, in the speech to which I refer, stated to the people of Ohio that that bill made a fixed policy, and that there was no step back ward. My opinion is, that from that bill there will be " a step back ward." [Deafening cheers.] It is rather extraordinary that a lead ing member of a great political party should say to the people that a bill has been passed to establish a party policy ; and yet the chairman of the Finance Committee of the United States Senate says to the -people of the country, " The Republican party needed a policy, and therefore we passed the finance bill of January, 1875." Now, what is that bill ? The first section of the bill directs the Secretary of the Treasury to redeem the fractional currency of the country and sup ply its place with silver coin. The last section of the bill directs that he shall redeem on the first day of January, 1879, all the outstanding legal-tender notes with gold. Now, the fractional currency last month, according to the report of the Treasury Department, was about $41,000,000, and the legal tenders amounted to $373,000,000. So this resumption law of last winter requires that with coin the currency of the country shall be taken up and redeemed to a sum amounting to more than $400,000,000. The question recurs to each one of .you, How is the Secretary of the Treasury to redeem the cur rency of the country with coin? There is no gold in the Treasury for that purpose ; there is no silver in the Treasury for the purpose of redeeming the fractional currency. That very question presented SPEECH AT PHILADELPHIA. 419 itself to Congress as it presents itself to your minds to-night ; and therefore, in the last section of the bill, Congress provides that -the Secretary of the Treasury, in order to redeem with coin, shall sell United States bonds in such quantity as shall be sufficient to enable him to do this. In order to raise the gold and the silver with which to take up the fractional currency and the legal-tender notes, the Secretary of the Treasury will probably be required to sell United States five per cent, bonds amounting to $400,000,000 ; and the direct effect of this bill is to Increase the national debt in gold-bear ing bonds, at the interest of five per cent., to the extent of $400,000,- 000, and to increase the annual interest in gold at the rate of $20,- 000,000. In my statement on a former occasion I estimated it at about $17,000,000, but the Treasury report made in September au thorizes the conclusion that it will require a sale of bonds exceeding $400,000,000, and the increase of our annual interest about $20,000,- 000. Are you prepared for that, my countrymen ? Are the men of Pennsylvania prepared to add to the gold debt of the country the enormous sum of $400,000,000 for the purpose of taking up the legal- tender and fractional currency of the country ? It is an important question; but a, very material inquiry in connection with it is this: " Where are these bonds sold ? " Of the bonds already sold I suppose that up to this time not one single bond has been sold in the United States. It has been the policy of this Administration to negotiate the sale of- our bonds abroad. That negotiation takes place through a combination of banks called, the syndicate ; and the bonds are not sent to Philadelphia, they are not sent to New York, they are not sent to Indianapolis, inviting the people of this country to purchase them, but they are sent directly to England and sold to foreigners ; and the effect is to add to our foreign debt $400,000,000, and to our annual interest abroad $20,000,000. Are you prepared for this? Some men talk about the Democracy not being true to the public credit. I say that the man who unnecessarily proposes to increase the national debt the interest-bearing, the gold-bearing debt .of the country abroad is, of all men, the man who endangers the public credit. [Series of cheers.] Who, I ask, wants the legal-tenders all to be redeemed, when by so doing you bring about such an increase of our national debt and such an increase of our annual interest abroad ? Have the people asked this ? You have, perhaps, in your pocket a legal tender. Have you asked Congress to make provision for borrowing gold for the 420 THE LIFE OF THOMAS A. HENDRICKS. redemption of that legal tender ? Are you not satisfied with the legal tender as a currency? I would rejoice if all the paper currency were equal to gold, and I look forward to the time when all the money of the country shall .be of equal value with gold. [Cheers.] But I do not look for the attainment of that desirable result through the borrowing of gold. I do not believe that a permanent, sure, and reliable return to specie payment can be accomplished upon borrowed gold. I think that before we return to specie payment we must have gold that will remain in the country. [Applause.] Four hundred millions of increase to our debt for the purpose of taking up the legal tenders ! The legal tenders will be made par with gold when we shall have restored the industries of this country, and returned to economy in all expenditures, public and private, so that the tendency of gold shall be toward our own shores and not from us. [Applause.] For the present, what objection have you to the legal tenders? The only objection is, that they are not on a par with gold. Have not the legal tenders been the active and faithful servants of the people ? Have you stopped to consider the circumstances under which they were issued? It was in 1862 that the first legal .tenders were pro vided for. At that time there was not sufficient gold in the country to meet the requirements of the public service. The soldiers upon the line of battle could not be paid in" gold, because the Government could not obtain gold in sufficient quantity ; and to meet that exi gency of the public service the act of February, 1862, was passed, authorizing the issue of the legal tenders, and" they were issued. Upon their face there is the promise of the Government to pay ; upon the back of them is stamped the quality of money, that they shall be a legal tender ; and the act of Congress declares them to be lawful money. "Why was that done ? Because the soldier receiving his money down upon the line of battle needed to send it home to his wife that she might pay off his debts, that it might meet the necessi ties of the family ; and so it became. necessary, in order to promote the public service, that upon these bills should be stamped the quality of money, that it should pass as money ; and it paid the soldier, paid the soldier s debts, and from that time to this it has been the active ser vant of the people. From pocket to pocket it has gone, and oh ! how many stories this bill could tell if it only had ears to hear and a mouth to speak ! [Laughter and cheers.] How many debts it has paid off; how much property it has purchased ; but it has never been stopped nor questioned until now. Eight now, when the country is in the midst SPEECH AT PHILADELPHIA. 421 of a panic when all industry is stagnant now it is proposed to de clare this to be bad money, questionable money ; and even, it is said? the Government must increase our national debt in order to redeem it. I would be glad if that bill were equal in value with gold, but, with great respect to Congress, I do not believe that it is within the power of the Congress of the United States to make my dollar bill equal to your gold dollar, unless the laws of trade and commerce give it that value. [Tumultuous enthusiasm, culminating in a series of cheers.] And when any political party tell you that that can be accomplished by an arbitrary edict of Congress, they mislead the people. There is a higher power than Congress it is the power of the trade and commerce of the country. But let us look at some of the other con sequences of this bill. In the first place, in my judgment, it is to produce a contraction of the currency of the country, wjiich the business of the country cannot endure. As the first day of January, 1879, the time for the redemption of greenbacks, shall approach, what will be the natural effect of the law ? Every man who has money that he wishes to lay aside and keep out of active employment and industry, will put that money into greenbacks, so that he may have the benefit of the advancing value, and thus the banks, that have to redeem their currency in gold or in legal tenders, will put away the greenbacks to meet the exigency when gold alone remains available for redemption. The effect of the bill is to retire the legal-tender currency of the country, and to .reduce the currency, upon which the business and enterprise of the country are carried on, from one-third to one-half at least. What is the advantage of it ? What has been the effect of it up to to this time ? I believe that, when this bill was passed, gold was about ten or eleven cents. It is to-day, as I understand, fif teen cents. This policy of the Republican party in Congress, which was intended to bring gold and paper nearer together, has had the ef fect to increase the distance bet ween the two, and the present premium on gold is one evidence of the results of the Eepublican policy that proposes to give stability to our currency and firmness to our business. Without contraction and without inflation, I believe the business and enterprise of the country should be allowed to recover their impaired strength. To the business-men of Philadelphia I put the question : Can you trust a party that introduced and enacted a measure so illy considered as this which disturbs the whole business of the people ? 432 THE LIFE OF THOMAS A. HENDRICKS. . Now, my countrymen, I will tell you wljen we can return to specie payment, as I think. It will be when we have a policy that promotes production, when our sales abroad shall exceed our pur chases abroad ; when the gold comes to us instead of going from us. "When these things have come to pass, we will then soon see a return to specie payment. [Long-contimied cheering.] It would be a gratification if I could tell you to-night that at a certain time all the currency of the country would be of equal value, but, in treating the subject in a practical way, it is my duty to present to you the diffi culties in the way of a return to specie payments. These difficulties, in my judgment, are due to the impediments which have been placed in the way of a return to specie payments by the policy of the party at Washington City. For some years the manifest purpose of the Republican party, as represented by General Grant s Administration, has been to make our debt a foreign debt. I do not say that the entire debt could have been negotiated in the United States, but I do say that the primary purpose and effort of the Administration should have been to nego tiate our bonds at home. Our bonds have been sent to Europe and sold there ; and the effect of this has been to make us as a nation a debtor to foreign bankers and money-holders. I know of no policy that could have been more disastrous to the country. It is the very reverse of that which a wise statesmanship and prudent forethought would have dictated. Instead of urging their purchase by foreign capitalists, the primary purpose and effort should have been to inter est the people of our own country you, the people of Philadelphia, and the people of Indiana in the purchase of bonds, and to promote the sale of a bond here and a bond there, and of quantities larger or smaller at home. No such effort has been madej but on the contrary, as I have said, all the efforts of the Administration have tended solely to the sale of our bonds abroad ; and now every pay-day the interest must be sent to foreign countries ; and to this extent the life-blood is drawn from the veins and arteries of the business of the country. [Applause.] An illustration of the evil influence of this policy Occurs to me in the case of Ireland. That country might have been among the richest. Her soil is good, her climate delightful and promotive of health and strength ; but Ireland was impoverished, because her lands were held in large quantities, and because the landlords ex pended their rents in extravagant living in foreign parts. If the rents of Ireland had been expended in Ireland, her prosperity would have SPEECH .AT PHILADELPHIA. . 423 been far greater than it has been. So on the Pacific coast to-day we are feeling the effects of a similar influence. The Chinaman there will labor at a much lower rate of wages than will the American, but he lives at much cheaper rates, and the gold that he can save from his earnings he sends off to China. This is an influence that is very destructive to the prosperity and develop ment of the Pacific coast. Our Government, then, in so far as it could, negotiating our debt altogether abroad, has followed a policy which, in the case of Ireland and of our Pacific coast, has Developed such lamentable results. [Enthusiasm.] England to-day owes, I believe, a larger debt than that which we owe, but England scarcely feels the burden, because her debt is held by Englishmen. The French debt is held by French men, and so far as Germany has any debt it is held by Germans. I Jbelieve the United States to-day stands alone as the only one of the great powers of the world whose bonds are held nearly ex clusively by foreigners. Now, I have referred to this feature of party policy, as showing one of the great impediments in the way of a return to specie pay ments. But glance for a moment at the other side of the picture : suppose that our bonds were held in our own country, then every pay-day the interest would come to our own people, and pass at once into the channels of trade, stimulating and encouraging the business and enterprise of the country ; but, so long as the gold goes from us, a return to specie payments is by that very influence ren dered every year more difficult. Let me illustrate the possibility of negotiating our loan among our own people. Perhaps I cannot better do this than by repeating a statement which attracted my notice very recently in respect to the State of Georgia. When, a few years ago, the people of Georgia finally obtained control of their own affairs, they found the State finances in a very disturbed condi tion ; and, in order to provide for the payment of the interest on the debt and for other pressing obligations, it was necessary for them to borrow $1,000,000. The State authorities issued bonds to the amount of $1,200,000, in the expectation that the Treasurer of the State would be able to realize upon this amount, in the city of New York, about $1,000,000. The Treasurer, upon attempting to negotiate the bonds in New York, found that the credit of Georgia had been so much impaired that he could not sell a bond. He returned home with the bonds, and then it was decided to appeal to the people of 424 THE LIFE OF THOMAS A. HENDRICKS. Georgia ; the bonds were accordingly advertised among the people, and the consequence was, that one man took one, and another man took another, and this or that guardian or trustee with money to in vest took a number of them, until finally the entire loan was taken by the people of Georgia, notwithstanding that that people were then comparatively very poor. I refer to this incident} simply as showing what it is possible to accomplish, when an honest and ear nest effort is made to interest the people of a country in the work of carrying their own debt. [Great cheering.] The bonds thus sold to the people of Georgia are held in that State to-day, and, as the state ment to which I have alluded showed, cannot now be purchased of their holders at par.- In this connection I mnst speak of the policy of the leaders in their treatment of the South. You may not realize the very intimate connection that exists between that policy and an early return to specie payments, and it is for that reason that I here refer to it. You know from the reports of the Treasury Department that, of the sales we make abroad, more than one-half in value is of cotton and to bacco. We boast of our wheat-crop and of the productions of our rich lands in the Northwest, and these are very great, and they serve to make us a rich people, but with regard to all these products a large market is found at home, while our great staples that control the foreign markets are cotton and tobacco. Now, at the close of the war, in view of our extraordinary situation, having an immense debt to meet and an enormous taxation to carry, was it not the part of statesmanship and wisdom to encourage the production of cotton and tobacco, and rice and sugar, in the largest possible quantities. A bale of cotton rolled from the ship on to the wharf at Liverpool is gold, for the coin value of it comes back to us in the next steamer. A package of tobacco landed at Havre, in France, is gold, for the Government of France buys our tobacco, and, if desired, the gold for it comes back in the next returning steamer. If we could only sell two bales of cotton and two caddies of tobacco where now we sell but one, how long, think you, would we be delayed in returning to specie payments ? [An uproar of cheers, and cries of approbation.] Now, my fellow-citizens, is it not very plain to you that the dictate of statesmanship was to encourage the South by promoting good government there, and thereby accelerating the production of these great staples which control the gold-market, and ultimately turning the current of gold once more in our own favor ? A great writer SPEECH AT PHILADELPHIA. 425 once said that he was the truest friend of man who made two blades of grass to grow where but one grew before ; and so, from the close of the war up to this time, it has been the dictate of statesmanship to have two bales, of cotton, if possible, where there was but one be fore. But the Republican party declared we should have but half a bale where before we had already one whole bale. [Here the Gov ernor s voice was drowned in the plaudits with which the immense audience ratified his assertion.] They said to the country, "It is better to maintain the supremacy of the Republican party rule in the South than it is to promote the great industries of the country." They disregarded the fact, which is so well known to you, that the cotton product is an element of national wealth which is as essential to the credit of the North as of the South. Why, gentlemen, is not the wheat that is grown upon the rich lands of Indiana a part of the wealth of Philadelphia as well as the wheat that grows in Chester County ? [Cheers.] Ah, gentlemen, it was the teaching of a wise statesmanship to promote the industries of the South, and it was the dictate of Christianity and of all religion that the past relations of the two sections should be speedily restored. Every religious or charitable consideration appealed to you and to me, and to all of us whose ears were more open to the appeals of suffering humanity than to the narrow-minded demands of party, to close up the breach, and said to us: "The war is over, the winds of heaven have blown away the smoke of the battle ; we are one people, one flag once more floats over us all ; one Constitution establishes the framework of gov ernment for us all, and one .destiny awaits us all. Let us in heart and in hand, in sentiment, in affection, and fraternity, be again one people." [Here the audience responded to the patriotic sentiments of the speaker by rising tumnltuously, and waving hats and handker chiefs, while making the hall ring with their fervid huzzas.] I repeat that stern statesmanship and mild-eyed religion came to us together with one message, saying, Restore the old relations of amity and concord between all the parts of the distracted country, and have prosperity in every portion thereof. [Applause.] But how has it been with us ? Virginia several years ago was able to recover her eel f -government; Georgia soon after resumed control of her own affairs ; and finally North Carolina came in, and then Texas, and at last Arkansas ; and, just as soon as self-government was restored to all these States, it "seemed as if blessings literally rained down from heaven upon the people. They once more built up their waste places ; 426 THE LIFE OF THOMAS A. HENDRICKS. the bramble was taken from their fields, and the cotton-plant, the sugar-cane, the tobacco-plant, and the corn, placed in the ground, and prosperity reappeared. [Cheers.] How is it to-day in Mississippi where an outsider is the govern ment ? [Merriment.] How is it to-day in the State of Louisiana, where a man is the Governor whom the people never did elect [appro bation], a man who is held in his position as Governor by the military power of the nation ? The taxes in.Louisiana to-day exceed the rental of the property. In the State of Georgia, since free government has been restored there, the taxation, as I have seen it stated, is one-half of one per cent, upon the value of the property. Our fathers discovered the true theory of American government, and that was, that affairs purely national and those connecting us with other nations should be committed to the Federal authority, but that local matters of domestic policy, and all those which reach to the home-life of the people, shall be left to the States. [Applause.] And wherever we stand by that doctrine it seems that Heaven blesses us and the earth gives forth her fruits in most prolific abundance. Now, I know of no greater honor than that which the people of Indiana did me three years ago that great people when they selected me as the chief executive officer of the State [great cheering, renewed again and again, as the Governor attempted to proceed] ; but, on the other hand, I know no greater humiliation that could bend my head down to the dust than the re flection that in my official capacity I could ever appeal to General Grant as the President of the United States for military force to keep me in my office. [General renewal of the enthusiasm.] Contrast the States which have been cursed by this Republican policy with those which have escaped it. In Indiana to-day our taxa tion for ordinary State purposes, not including pur schools, is thirteen cents on the one hundred dollars ; in Louisiana the rate is six dollars on the one hundred. In Indiana the people, according to the Amer ican theory, control their own affairs, select the members of the Legislature, who enact laws according to the pleasure of their con stituents, and, if there be any dispute as to the right of a member to a seat in the body in which he claims membership, the body settles the question according to its sovereign will, and there is no violent inter ference with that decision. But in Louisiana a foul breach was made in the body of American institutions, and the blood of liberty did flow when a military power went into the capital of the State, and at SPEECH AT PHILADELPHIA. 427 the point of the bayonet excluded five members-elect, and substituted five others in their stead who had not been elected. Coming back to the proposition that this policy which interferes with the production of the great staples of the South has been the same which stood in the way of a return to specie payments, allow me a passing allusion to another development of this Southern policy. You are appealed to frequently about the interests of the colored man ; but let me inquire, by way of giving you a suggestion, in what States are there any allegations of trouble between the races ? Have you heard of any trouble between the white man and the black man in Virginia, in Texas, in Arkansas even, since she became free [laughter and cheers], or in any of the States that, like her, haye governments of their own choosing? But in Louisiana and in Mississippi there are troubles all the while, because and I can conceive of no other reason because it is to the interest of those who are not of the people there to keep up a strife, that they may make political gain by it. [Applause.] I say to you, my countrymen, that the two races in the South are interested in the restoration and preservation of good government there, and that the people of the North are directly interested in the maintenance of good government there, and the promotion of all their industries. Speculators may thrive under bad government, but the life and support of agriculture, that original pursuit of man, depend upon the fair administration of honest laws, and upon light taxation. We must allow the people of the South to restore that kind of govern ment, and then prosperity will come to that section as to ours. To summarize briefly my views about a return to specie pay ments, my fellow-citizens, they are that Congress cannot arbitrarily bring it about ; but that, with the encouragement of the develop ment of the agricultural resources of the South and North, the re newal of all the industries of the country, specie payments will be restored in exact harmony with the laws of trade and commerce. Then the golden current will again flow toward our shores, not to be checked; and we will have a permanent support for specie payments, and a permanent basis of prosperity. Another hinderance in the way of a return to specie payments, to which I might, with propri ety, have alluded at some length, is attributable to the extravagant expenditures of the national Government ; I shall not comment upon the enormity of the amount that is collected from the people of Philadelphia, or upon what on earth is done with it [laughter and applause], but I must express something of the surprise I felt to-day 428 THE LIFE OF THOMAS A. HENDRICKS. . when- somebody told me that the taxation in Philadelphia amounted to about $8,000,000 per year: I did not think that this could be possible, and then I was further notified that the debt was being in creased beyond that amount at a rate of $5,000,000 per year. I do not know how that is [renewed merriment and applause], but indeed you will need to be a very prosperous people if you are to long sup port so costly a municipality. Why, our people in Indiana think that the State administration is quite expensive enough when it costs for ordinary purposes but a little less than $1,000,000. With a popu lation of nearly 2,000,000 people, the aggregate expenditures for our legislative, executive, and judicial departments foot up less than $1,000,000, and the people of Indiana think that $1,000,000 per year provides them a good government. Eated according to popu lation, this would be about fifty cents per head, and I think myself that, comparatively considered, it is at least a cheap government. If, with a population of 750,000, you expend here in carrying on your local government the enormous yearly aggregate of $8,000,000, I have only to say that the rate of assessment is much higher than that of fifty cents a head. But if that suits the people of Philadelphia, it is their business, not mine ; I have nothing to do with that, but with respect to the manner in which General Grant and his 80,000 office-holders spend the public money that is my question as well as yours. [Applause.] Since the close of the war, in 1865, there has been collected by the United States authorities each year, I believe, on an average, nearly or quite $350,000,000 ; and that for ten years would make an aggre gate of $3,500,000,000. Positively, it confuses me to express it an amount nearly twice the present national debt. Now, before the people . of Pennsylvania should consent to a continuance of this power, it would be better that there should be an investigation and an answer made as to what has been done with this enormous sum of money. But coming down to the last year we find, according to the report of the Secretary of the Treasury, that the entire expendi tures for the year were above $300,000,000, while the account of expenses for ordinary purposes footed up $285,000,000. Deducting from that sum the appropriation for pensions, and the outlay on account of the interest on the public debt, we will have left -for the last year, $149,000,000. Now, tell me what was done with $149,- 000,000 last year. No part of it went to pay anything that was the result of the war ; the pensions and the interest on the debt were all SPEECH AT PHILADELPHIA. 429 provided for over and above the $149,000,000. " For ordinary ex penditures of the Government, $149,000,000." Where did it go? What has become of the $149,000,000 ? Before the war the national expenditures for all purposes amounted to from $50,000,000 to $60,000,000. They are three dollars now for every one then. What becomes of the money ? They have said they could not appropriate anything for the Centennial they could not afford it ? [Laughter and ap plause.] Ah ! there is much that they cannot afford, that they would never leave unprovided for. [Renewed laughter.] A few days ago I asked a friend of mine, who has been a member of Congress for a number of years, one of the most attentive mem bers, and one of the most careful in respect to the interests of the people of the country, Judge Holman [applause] I asked him how much of a reduction could be made in the public expenditures per year without impairing the public service, but at the same time maintaining it in a condition as efficient as that in which it now is. He replied, " At least $40,000,000 per year." Think of it ! A sav ing of $40,000,000 per year in the national expenditures ! W T hy, I ask you, what length of time would be necessary to take us in the direction of a return to specie payments if a policy such as that was adopted ? [Great cheering.] - Next in importance in this connection is the corruption that per vades the public service. Let them tell the dark story, and give a reason for it before they come before the people of Pennsylvania for a renewal of their power. Shall we take the Interior Department alone? Shall -we speak of the Indian service? Why, when your worthy chairman, Judge Campbell, was a member of. one of the purest cabinets that ever presided over American interests, when the Indians were much more numerous than they are now, the Indian expenditures were but about $2,500,000. In Mr. Lincoln s Adminis tration, as you will see by his message of December, 1863, the In dian expenditures were a little less than $3,000,000. In his message he states the total expense for the Indians and the pensions at $4,200,000, and that the pensions were above $1,000,000 at that time, leaving the expenses of the Indians in Mr. Lincoln s Administration at less than $3,000,000. The. last report from the department shows "that the Indian service last year cost $6,692,000 nearly three dollars for one as compared with Mr. Lincoln s Administration ; fully three dollars for one as compared with President Pierce s Administration ? 430 THE LIFE OF THOMAS A. HENDRICKS. Where has the money gone ? Tell me, you good- men, you men who may be afraid of the Pope [laughter] and some bad influences in that direction tell me, where has the money gone ? [Applause.] A citi zen of Philadelphia has told us something on this subject a Mr. Welsh, not a Democrat, but, I believe from all I hear of him, a very honest man [cheers] and there has been a committee whitewashing the whole subject lately. They say it is not so bad as they expected ; not so bad as Mr. Welsh thinks it is, and not so bad but what it might be worse [prolonged merriment and applause] ; and they say it was rather a mistake. [Renewed humor.] But there is no " mis take " in this, that, when the Indians were more numerous than they are now, it cost Mr. Lincoln less than $3,000,000, and it cost, under the present corruption, more than $6,000,000. There is no "mis take " about that ; and, when one Republican comes to another and says, " Stand in line, stand with your toe upon the party line," let him who is thus addressed ask the question, " What became of the Indian money?" Mr. Welsh, in a statement made by .him, makes an extract from a letter that was written last April by an army-officer who had been stationed at the &ed Cloud Agency last winter. Out there the Indians were supplied with blankets that were too short to cover their poor bodies and too thin to keep the winds of heaven from them ; and this army-officer s letter, from which Mr. Welsh quotes, contains this ominous sentence I give you the substance, if not the exact language " The Indians are quiet now." How pain fully we are reminded of the circumstances which gave rise to that other sententious saying, " Order reigns in Warsaw ! " This was ut tered at a time when- the power of .the Russian Government had de stroyed all liberty and all personal rights in poor Poland. u The In dians are quiet now ! " And the letter goes on to state that during the preceding winter many of them came very near starvation, be cause of the intrigues and corruption of the "Indian Ring," and it goes on to state that they were compelled to eat dogs and wolves and ponies as their only subsistence. Ah, " the money was paid by the Government! " Yes, two dollars for every one that was paid before ; and yet these poor victims of the selfish avarice and corrup tion of other men were obliged, in order to maintain life, to eat that which was not fit for any human stomach. But we need not go out to the Plains to understand this subject. You recollect last spring there was a good deal of talk about the Black Hill country, and that certain white people were determined to have that country; and so, SPEECH AT PHILADELPHIA. 431 in May last, tliey sent out for the Indians to come in and make a treaty for the sale of the Black Hill country to the white men. If you will turn to the newspapers of the 1st or 2d day of June, you will see an account of a very dramatic scene in the Interior De partment at Washington City. On the 1st day of June last, Mr. Delano, the Secretary of the Interior, was in his office. By his side was a bishop, and with him the Commissioner of Indian Affairs the telegraph gives this account and the Indians were brought up from the tavern at which they were staying in Washington, and they were told that the white men wanted their country, and that it was very hard to keep the white men out of it. But the Indians replied that they did not want to sell the Black Hill country, their favorite hunt ing-ground. Just then, Mr. Delano told them, " If you don t take, within the next thirty days, the $25,000 that I have offered you for the Black Hill country, the probability is that you will not get any thing for it." Here was this mighty people, of whom you constitute a part, saying to these poor barbarians, " We are stronger than you, and .you must take what we offer, or maybe we will give you noth ing." And when that barbarous sentiment was uttered to the poor Indian, old Bed Cloud, one of the chiefs, arose, and, lifting his hand toward heaven, said, "Great Spirit, hear me, have mercy upon me, pity me ! " Put side by side the pure prayer of that speech and the intrigues of an American statesman ! [Tremendous applause.] I am in favor of going back to the sentiment of Andrew Jackson (cheers], which was this : The Indian must-be made to obey the authority of the country, and the white man to respect the rights of the Indian. [Cheers.] And that is the sentiment that will preserve peace upon the border, and make the farmer upon the frontier, with his family, secure in their little cabin. My fellow-citizens, I would like to talk to you at greater length about. the frauds that have pervaded the public service. They com mence in the high places, and go down to the low places. They are not any longer concealed ; they cannot be longer concealed. One hundred and fifty millions ($150,000,000) expended for the ordinary purposes of Government ! Where has the money gone ? That is the question. Let them answer it. I know there are Republicans who very much dislike to leave their party and join the Democrats and the Liberals ; but then you have to come to it, you know. [Good-humor and applause.] You may as well come now as at any time. [Laugh ter and cheers.] You cannot stand it always ; you know your party 432 THE LIFE OF THOMAS -A. HENDRICKS. is in the wrong ; you know there ought to be a change ; so it is -a good time to come now. [Renewed hilarity.] Ah, they have been encouraged by the result of Ohio ! [Derisive laughter.] It is a great encouragement indeed when, with all the power of party discipline and the expenditure of enormous sums of money, a Republican State, heretofore usually Republican by thirty thousand, could only be saved to -their party by a poor four thousand votes. [Cheers.] Now I say to these Republicans that their only remedy is to change ; you cannot bring about reforms in your own party, and you have seen the failure of the effort repeatedly. What has the indignant protest of Mr. Welsh, of your city, amounted to ? When he. came out and exposed corruption, a committee was appointed to cover up his ex posure. What can he do ? The only remedy is to turn the party out.. I do not claim that the one party is naturally more corrupt than the other ; I suppose that if there were no parties in the country, and you were to divide the country into two parties, there would be as many scoundrels on the one side as on the other ; but if the one gets in power and remains in power for a number of years, with the control of large expenditures and vast patronage, do you not know that all the adventurers and sharp fellows and scoundrels on the other side would soon come across here ? Do you not know that this class would soon usurp the places of influence and power that they would soon control the primary conventions and meetings of the party ? And do you not know that politicians would soon make court to them instead of fighting them ? I repeat, the only remedy is to turn out, and try a new set. It is the only remedy of the peo ple, and I hope Pennsylvania will set the example. Pennsylvania is a great State, powerful in every respect ; and if she will only place herself this year upon the side of reform, econo- .my, .and pure government, oh, what an influence it will have over the whole country and the world ! [Applause.] You know how it is in respect to your private affairs. If you have an agent in the con trol of your affairs, and you find that your debts are increasing and your property decreasing, even if you cannot find where the fault is, you will inaugurate a change before you are entirely ruined. If you find your favorite physician cannot cope with a disease that has come into your family, you will call into that family a new physician, and see if possibly some remedy cannot be found. So I appeal to you now, as the only remedy left you, to bring about a change. This Re publican party has been in power full too long for the good of the -SPEECH AT PHILADELPHIA. 433 country. Let a change be made ; and if that change.be not for the better, then, when experience shall show us that there ought to be a change the other way, I will trust to the intelligence and the integ rity of the people again to change, and place public affairs where they ought to be. [Long-continued enthusiasm and manifestations of approbation, culminating, at the suggestion of several in the audi ence, in three rounds of cheers for the next President Hon. Thos. A. Hendricks, of Indiana.] 19 CHAPTER V. HIS VIEWS ON TEMPERANCE LEGISLATION. . GOVERNOR HENDRICKS has been frequently assailed by his political opponents for his approval of what is commonly known as "the Baxter law" an act passed by the State Legislature in 1873. That his views on this question may be fully understood, a brief summary of the case is herewith given : Both branches of the Indiana Legislature in 1873 were Republican. It was this Legislature which, upon the recom mendation of Governor Conrad Baker, Governor Hendricks s immediate predecessor, passed the Baxter law. That law was framed with a view to suppressing the use of intoxicat ing liquors, and was both rigid in its provisions and severe in its penalties. Six weeks after his inauguration, the bill was presented to Governor Hendricks for his signature. It was distasteful to him in every particular, yet he knew that, whether he vetoed it or not, it would become a law. More- over, in order to interpose the Executive veto, it was neces sary to discover some constitutional objection to the bill. His own judgment as a lawyer was to the effect that the law was not in conflict with the constitution. On so important a question as this, however, which had been thrust suddenly upon him, Governor Hendricks was not willing to abide his own conclusion. Accordingly, he invited a conference of able lawyers, who, after a careful review of the proposed law, con firmed the Governor in his judgment, that the Baxter bill was, in its main features, a constitutional enactment. He therefore signed the bill. HIS VIEWS ON TEMPERANCE LEGISLATION. 435 An effort was made to create the impression that the Supreme Court of Indiana decided the Baxter law to be un constitutional. Such was not the case. Except as to one unimportant section, the Supreme Court held that the law was constitutional in every respect. It was saddled .upon the people of Indiana by a Republican Legislature, arid against the wishes of the people. Governor Hendricks was anxious for its repeal, and desirous of substituting a judicious license law. From the speech which he delivered at Indian apolis before the Democratic State Convention in July, 1874, the following extract, relating to the subject of temperance legislation, is made : I think the Democracy, on the 13th of October, are expected to declare, in plain terms, what legislation you approve in regard to the sale of intoxicating liquors. My official duty places me in a respon sible relation to this subject. I signed the law now in force, known as the Baxter bill, though I thought some of its provisions unwise and impolitic. Before signing the bill I examined it with all the care the time allowed would permit. I called to my assistance two of the ablest lawyers of the State, and I came to the conclusion that its provisions were not in violation of the constitution. It was not a case of hasty or inconsiderate legislation. It was deliberately con sidered in both branches of the Legislature. Believing the bill to be constitutional, and that it expressed the deliberate judgment and will of the Legislature, it was my duty to sign it. I believe the veto- power is conferred to arrest unconstitutional and hasty legislation, and legislation in derogation of fundamental and essential rights, such as the equality of representation, and not to enable the Governor to oppose his opinions to those of the people s immediate representatives upon questions of mere policy or police regulation. That law has not received the popular support necessary to make it efficient. It has encountered determined hostility on the part of those engaged in the liquor-business, and for many months* extreme temperance peo ple, in a very extraordinary manner, have shown an unwillingness to abide by its provisions. Propositions will be brought before the next Legislature for the material modification or repeal of the law. What legislation shall take its place? Our Supreme Court has declared absolute prohibi- 436 THE LIFE OF THOMAS A. HENDRICKS. tion to be unconstitutional, and experience, I believe, has shown it to be impracticable. It then only remains to regulate the traffic. Any useful law must rest upon the proposition that there are serious evils to society and to individuals connected with the traffic in intoxicating liquors, which it is the province of the law to restrain and prevent. Sales should not be made to boys ; and, if necessary to prevent it, the boy who misrepresents or conceals his age to obtain liquor should be punished as well as the party who knowingly sells to him. Drunkenness should be punished as well as selling to the intoxicated. All sales should be forbidden w 7 hen the public peace or safety requires it; and, like other pursuits, it should be suspended in the night-time. Perhaps the hour now fixed is unnecessarily and in conveniently early, but society should be protected from the disturb ances and bloodshed incident to the traffic in the middle of the night. I think it might properly be considered whether a difference in regulation could not safely be made for the sale of vinous and malt liquors, and the stronger and more intoxicating drinks. There is certainly a great difference in the evils that result from their use. "With these and such other provisions as may seem reasonable and necessary, I think experience justifies the adoption of the license system. The amount required for the license in each case should be greater than heretofore. It should be sufficient to make the party selling feel that his interest is identified with that of society in pre serving order and good conduct at his place of business, and avoiding all violations of law. This policy will bring a large revenue into the school-fund, and will prove more efficient in suppressing the evils of intemperance than the present system. I cannot appreciate the ob jection that, by receiving a license-fee, society uses money received from an improper source. Under the present law the State grants the permit, and declares the business lawful. Under a policy which we have long maintained, every violation of our criminal law that is punished by fines adds to the school-fund. No law upon this subject can be useful unless supported by public opinion in its favor. The wise legislator considers the weakness as well as the strength, the follies as well as the wisdom of man, and adapts the laws to his real wants and necessities. This speech was reiterated by all the Democratic speak ers who canvassed Indiana during 1874. Governor Hendricks HIS VIEWS ON TEMPERANCE LEGISLATION. 437 himself repeated the sentiment which it contained, and fol lowed up his speeches by a forcible recommendation to the Legislature, when that body assembled in January, 1875. In his annual message he said : The act of February 27, 1873, regulating the sale of intoxicating liquors, has not accomplished the good that was expected by its ad vocates. It has not been sufficiently in accord with public opinion to be efficient or useful. It has been the cause of irritation without remedying the evils it was intended to suppress. The duty rests upon you to revise and reform that legislation. In the discharge of that duty, you will assume that there are evils to society and to indi viduals connected with the traffic in intoxicating liquors which it is the province of law to restrain and prevent. Sales should not be made to boys ; and drunkenness should be punished as well as selling to the intoxicated ; and the minor who misrepresents or conceals his age to obtain liquor should be punished as well as the person who knowingly sells to him. Sales should be fordidden when the public peace or safety requires it. Like other pursuits it should be suspend ed after a reasonable hour in the night, so as to avoid the disturb ances incident to the traffic at that time. It should be made unlawful to buy whenever it is made unlawful to sell, and punishment should be inflicted upon the purchaser as well as the seller. I recommend that a reasonable tax, or license-fee, be imposed. It should be higher than heretofore, and subject to forfeiture of the license for disregard of the law. That policy will bring a large reve nue into the school-fund, if so directed, and at the same time identify the interest of the party selling ivith that of society, in preserving order and good conduct at his place of business. I suggest, for your consideration, whether it is not practicable to make a difference of regulation in respect to the sale of vinous and malt liquors and the stronger and more intoxicating drinks. There is a great difference in the evils that result from their use. It is perhaps proper to add that the license law has worked most satisfactorily in Indiana, and has added hundreds of thousands of dollars to the school revenues ; and the law, as it now exists, was to a great extent the result of Governor Hendricks s personal and official efforts. It has resulted in abating the evil of intemperance, and is placing the legiti- 438 THE LIFE OF THOMAS A. HENDRICKS. mate traffic upon a permanent and satisfactory basis. The assertion that the Germans of Indiana are hostile to Mr. Hen- dricks, because of his official conduct in this matter, is wholly without foundation in fact. The Germans who are Demo crats are satisfied with his course, and will give him their hearty support. Governor Hendricks s letter, accepting the Democratic nomination for the vice-presidency, was published simulta neously with Governor Tilden s letter of acceptance. It reads as follows : GOVERNOR HENDRICKS 1 8 LETTER OF ACCEPTANCE. INDIANAPOLIS, July 24, 1876. GENTLEMEN : I have the honor to acknowledge the receipt of your communication, in which you have formally notified me of my nomination by the National Democratic Convention at St. Louis as their candidate for the office of Vice-President of the United States. It is a nomination which I had neither expected nor desired ; and yet I recognize, and appreciate the high honor done me by the convention. The choice of such a body, pronounced with such unusual unanimity, and accom panied with so generous an expression of esteem and confi dence, ought to outweigh all merely personal desires and preferences of my own. It is with . this feeling, and I trust also from a deep sense of public duty, that I now accept the nomination, and shall abide the judgment of my countrymen. It would have been impossible for me to accept the nomi nation if I could not heartily indorse the platform of the con vention. I am gratified, therefore, to be able unequivocally to declare that I agree in the principles, approve the policies, and sympathize with the purposes enunciated in that plat form. The institutions of our country have been sorely tried by the exigencies of civil war, and, since the peace, by a selfish and corrupt management of public affairs, which has shamed us before civilized mankind. By unwise and partial legisla- HIS VIEWS ON TEMPERANCE LEGISLATION. 439 tion every industry and interest of the people have been made to suffer ; and in the executive departments of the Govern ment dishonesty, rapacity, and venality, have debauched the public service. Men known to be unworthy have been pro moted, while others have been degraded for fidelity to official duty. Public office has been made the means of private profit, and the country has been offended to see a class of men who boast the friendship of the sworn protectors of the state amassing fortunes by defrauding the public Treasury, and by corrupting the servants of the people. In such a crisis of the history of the country I rejoice that the conven tion at St. Louis has so nobly raised the standard of reform. Nothing can be well with us or with our aifairs until the pub lic conscience, shocked by the enormous evils and abuses which prevail, shall have demanded and compelled an unspar ing reformation of our national Administration, " in its head and in its members." In such a reformation the, removal of a single officer, even the President, is comparatively a trifling matter, if the system which he represents, and which has fos tered him as he has fostered it, is suffered to remain. The President alone must not be made the scape-goat for the enor mities of the system which infects the public service and threatens the destruction of our institutions. In some re spects I hold that the present Executive has been the victim rather than the author of that vicious system. Congressional and party leaders have been stronger than the President. No one man could have created it, and the removal of no one man can amend it. It is thoroughly corrupt, and must be swept remorselessly away by the selection of a Government composed of elements entirely new and pledged to radical re form. The first work of reform must evidently be the restoration of the normal operation of the Constitution of the United States, with all its amendments. The necessities of war can not be pleaded in a time of peace ; the right of local self- government as guaranteed by the Constitution of the Union 440 THE LIFE OF THOMAS A. HENDRlCKS. must be everywhere restored, and the centralized (almost per sonal) imperialism which has been practised must be done away, or the first principles of the republic will be lost. EEPEAL OF THE EESUMPTIOX CLAUSE. Our financial system of expedients must be reformed. Gold and silver are the real standard of values, and our na tional currency will not be a perfect medium of exchange until it shall be convertible at the pleasure of the holder. As I have heretofore said, no one desires a return to specie pay ments more earnestly than I do ; but I do not believe that it will or can be reached in harmony with the interests of the people by artificial measures for the contraction of the cur rency, any more than I believe that wealth or permanent pros perity can be created by an inflation of the currency. The laws of finance cannot b.e disregarded with impunity. The financial policy of the Government, if indeed it deserves the name of policy at all, has been in disregard of those laws, and therefore has disturbed commercial and business confi dence, as well as hindered a return to specie payments. One feature of that policy was the resumption clause of the act of 1875, which has embarrassed the country by the anticipation of a compulsory resumption, for which no preparation was made, and without any assurance that it would be practicable. The repeal of that clause is necessary, that the natural opera tion of financial laws may be restored, that the business of the country may be relieved from its disturbing and depress ing influence, and that a return to specie payments may be facilitated by the substitution of wiser and more prudent leg islation, which shall mainly rely on a judicious system of pub lic economies and official retrenchments, and, above all, on the promotion of prosperity in all the industries of the people. I do not understand the repeal of the resumption clause of the act of 1875 to be a backward step in our return to spe cie payments, but the recovery of a false step ; and, although HIS VIEWS ON TEMPERANCE LEGISLATION. 441 the repeal may for. a time be prevented, yet the determination of the Democratic party on this subject has now been dis tinctly declared. There should be no hinderances put in the way of a return to specie payments. " As such a hinderance," says the platform of the St. Louis Convention, " we denounce the resumption clause of the act of 1875, and demand its re peal." I thoroughly believe that by public economy, by official retrenchments, and by wise finance, enabling us to accumulate the precious metals, resumption, at an early period, is possible without producing an " artificial scarcity of currency," or dis turbing public or commercial credit ; and that these reforms, together with the restoration of pure government, will restore general confidence, encourage the useful investment of capital, furnish employment to labor, and relieve the country from the " paralysis of hard times." NEEDED KEFOKMS. With the industries of the people there have been fre quent interferences. Our platform truly says that many industries have been impoverished to subsidize a few. Our commerce has been degraded, to an inferior position on the high-seas ; manufactures have been diminished ; agriculture has been embarrassed ; and the distress of the industrial classes demands that these things shall be reformed. The burdens of the people must also be lightened by a great change in our system of public expenses. The profligate expenditure which increased taxation from five dollars per capita in 1860 to eighteen dollars in 1870 tells its own story of our need of fiscal reform. Our treaties with foreign powers should also be revised and amended, in so far as they leave citizens of foreign birth in any particular less secure -in any country on earth than they would be if they had been born upon our own soil ; and the iniquitous coolie system, which, through the agency of wealthy companies, imports Chinese bondmen, and establishes 442 THE LIFE OF THOMAS A. IIENDRICKS. a species of slavery, and interferes with, the just rewards of labor on our Pacific coast, should be utterly abolished. In the reform of our civil service, I most heartily indorse that section of the platform which declares that the civil sei*- vice ought not to be " subject to change at every election," and that it ought not to be made " the brief reward of party zeal," but ought to be awarded for proved competency, and held for fidelity in the public employ. I hope never again to see the cruel and remorseless proscription for political opin ions which has digraced the Administration of the last eight years. Bad as the civil service now is, as all know, it has some men of tried integrity and proved ability. Such men, and such men only, should be retained in office ; but no man should be retained, on any consideration, who has prostituted his office to the purposes of partisan intimidation of compul sion, or who has furnished money to corrupt the elections. This is done, and has been done, in almost every county of the land. It is a blight upon the morals of the country, and ought to be reformed. THE SCHOOLS AND EQUAL EIGHTS. Of sectional contentions and in respect to our common schools I have only this to say : That, in my judgment, the man or party that would involve our schools in political or sectarian controversy is an enemy to the schools. The com mon schools are safer under the protecting care of all the people than under the control of any party or sect. They must be neither sectarian nor partisan, and there must be neither division nor misappropriation of the funds for their support. Likewise I regard the man who would arouse or foster sectional animosities and antagonisms among his coun trymen as a dangerous enemy to his country. All the people must be made to feel and know that once more there is estab lished a purpose and policy under which all citizens of every condition, race, and color, will be secure in the enjoyment of whatever rights the Constitution and laws declare or recog- HIS VIEWS ON TEMPERANCE LEGISLATION. 443 nize ; and that in controversies that may arise the Government is not a partisan, but within its constitutional authority the just and powerful guardian of the rights and safety of all. The strife between the sections and between races will cease as soon as the power for evil is taken away from a party that makes political gain out of scenes of violence and bloodshed, and the constitutional authority is placed in the hands of men whose political welfare requires that peace and good order shall be preserved everywhere. GOVEENOE TILDEN S PUBLIC SEEVICES. It will be seen, gentlemen, that I am in entire accord with the platform of the convention by w r hich I have been nomi nated as a candidate for the office of Vice-President of the United States. Permit me, in conclusion, to express my sat isfaction at being associated with a candidate for the presi dency who is first among his equals as a representative of the spirit and of the achievements of reform. In his official career as the Executive of the great State of New York, he has, in a comparatively short period, reformed the public service and reduced the public burdens, so as to have earned at once the gratitude of his State and the admiration of the country. The people know him to be thoroughly in earnest ; he has shown himself to be possessed of powers and qualities which fit him in an eminent degree for the great work of reformation which this country now needs ; and if he shall be chosen by the people to the high office of President of the United States, I believe that the day of his inauguration will be the beginning of a new era of peace, purity, and prosperity, in all depart ments of our Government. I am, gentlemen, your obedient servant, THOMAS A. HENDRICKS. To the Hon. John A. McClernand, chairman, and others of the Com mittee of the National Democratic Convention. THE END. A TEXT-BOOK FOE EVERY DEMOCRAT, Democracy in the United WHAT IT HAS DONE, WHAT IT IS DOING, AND WHAT IT WILL DO. Late Member of Congress and Registrar and Solicitor of the United States Treasury Department. WITH PORTRAITS ON STEEL OF THOMAS JEFFERSON, ANDREW JACKSON, AND HORATIO SEYMOUR. ONE 12mo VOLUME, PRICE $1.75. TABLE OF CONTENTS. contrasted PAGE 1 3 1. Forms of Government. 2. Party Names. 8. Democratic Principles with others 4 4. Washington s Administration 8 5. John Adams s Administration 8 6. Anti-DemocraticNaturalization Laws 11 7. The Political Revolution of 1800. .. 13 3. Attempt to deprive Mr. Jefferson of his Election 14 9. Thomas Jefferson 15 10. Jefferson s Political Principles 18 11. Jefferson s First Term as President. 23 12. Jefferson s Acquisition of Louisiana . 24 13. Pirates and the Freedom of the Sea. 26 14. New England Clergymen preaching Anti-Democratic Principles 27 15. Secession proposed by theAnti-Dem- ocrats of New England 29 16. One of Nature s Noblemen 34 17. Proposition to impeach Mr. Jeffer son 36 18. Why the Embargo was abandoned. 83 19. " Free Trade and Sailors Rights " . . 41 20. James Madison and his Political Principles 45 21. The Declaration of War 47 22. The Anti-Democrats endeavored to prevent Loans and Enlistments. . 50 23. The Navy and Naval Heroes 51 24. William Bainbridge 53 25. Charles Stewart 54 26. Stephen Decatur 55 27. Isaac Hull 56 28. Oliver Hazard Perry 67 29. John Rodgers 58 80. Thomas MacDonough 59 81 . James Lawrence 60 32. David Porter 61 33. The Army and its Officers 63 84. Zebulon Montgomery Pike 64 35. Alexander Macomb.. . . 65 86. John E. Wool 65 37. Jacob Brown 66 38. Andrew Jackson 67 39. Eleazar W. Ripley 69 40. Peter B. Porter 69 41. William J. Worth 70 42. The Principles and Intentions of the Anti-Democratic Party during the War of 1812 43. Daniel D. Tompkins 44. Burning Blue-Lights 45. Disunion proposed by the Federal ists 46. The Hartford Convention of 1814.. 47. John Holmes s Description of the Hartford Convention and its Authors 48. Mr. Madison s Second Term 94 49. The Invasion, Sacking, and Burning of Washington 95 50. The Battle of New Orleans 97 51. The Bank Bills of 1815 and 1816.. . 100 52. James Monroe, and his Election to the Presidency 102 53. The Era of Good Feeling 104 54. The Monroe Doctrine 107 M Contents of Democracy in the United States. 55. Banks and Banking in New York . 108 56. The Acquisition of Florida 110 57. Eemarks on Mr. Monroe s Admin istration Ill 58. The New York State Constitutions of 1821 and 1846 112 59. TheNew York Electoral Law of 1824 116 60. Administration of John Quincy Adams 118 61. Equality the only Honest Basis of Legislation 121 62. William L. Marcy 126 63. Political Anti-Masonry 128 64. Internal Improvements by the Gov ernment 132 65. Veto of the United States Bank ... 136 66. The Eemoval of the Deposits 140 67. Senatorial Condemnation of Gene ral Jackson 148 68. Michael Hoffman 145 69. Eemovals from Office 147 70. "Terrible Distress of the Country 1 149 71. The Protective System 152 72. The Eevival of a Gold Currency. . . 156 73. Distribution of the Public Eevenue 159 74. The Specie Circular 163 75. Thomas H. Benton 166 76. Distribution of the Public Lands and Land Sales 169 Disunion in its Early Stages 171 Washington s Farewell Address ... 173 77. 78. 79. Silas Wright 1 100. 101. 102. Jackson s Farewell Address 183 Martin Van Buren 188 The Sub-Treasury 195 The Presidential Election of 1840.. 199 Tariff Duties on Foreign Importa tions 202 John A. Dix 207 Internal Eevenue Taxes 212 The Force of Bad Precedents in Legislation 215 Heman J. Eedfield 218 Congress responsible for the Ex travagance of the National Gov ernment 221 Administration of John Tyler 228 James K. Polk, his Election and Political Principles 231 Mr. Folk s Administration 233 Zachary Taylor and his Adminis tration 235 Millard Fillmore and his Adminis tration 237 John Brown at Harper s Ferry 240 Azariah C. Flagg 242 Franklin Pierce and his Adminis tration. 246 James Buchanan 248 Mr. Buchanan s Administration 251 The Tyranny of Majorities in Con gress 257 Abraham Lincoln 259 Mr. Lincoln on his Way to Wash ington 261 103. Mr. Lincoln s Inaugural Address and its Consequences 264 104. Firing the First Gun 266 105. The Suspension of the Writ of Ha beas Corpus 270 106. Spies and Secret-Service Agents . . 278 107. The Trial of Civilians by Military Commissions 276 108. The Early Avowed Objects of the War 279 109. Later Avowed Objects of the War. 282 110. Mr. Chase s Financial Plans and their Consequences 286 111. Mr. Chase s Banking System 2S8 112. Why the War lasted so long 291 113. Congressional Fishing-Committees. 294 114. Mr. Lincoln s Plan of Beconstruc- tion 297 115. The Injury inflicted upon the Ne groes by the Eepublican Mode of Manumission 299 116. Eepublican Struggle for Power and the Spoils 801 117. The Eeorganization of Louisiana and Arkansas, and what came of it 804 118. Congressional Caucuses 307 119. The Freedmen s Bureau 309 120. Mistakes of the American Clergy.. 313 121. The proposed Fourteenth Amend ment to the Constitution 818 122. Later Phases of Congressional Ee- construction 820 123. The American Press and the Tele graph 328 124. The Secession States were never, in Law, out of the Union 327 125. Andrew Johnson 333 126. Impeachment of President Johnson 837 127. Congress and the Supreme Court. . 844 128 Destruction of the Highes-t Court in the District of Columbia 848 129. Exchange of Prisoners during the War 349 180. What our Country was, is, and may be 853 131. Dean Eichmond 357 132. Negro War-Services and Negro Loyalty 860 183. President Johnson and Edwin M. Stanton 862 184. Slander as Political Capital 866 135. What has the Country gained by Eepublican Eule? 369 186. Are not all the States in Danger?. . 872 137. Issues to be tried by the People. . . 876 138. Expenses of the National Govern ment 884 189. Our Public Debt 389 140. A New Department of the Govern ment 392 141. The Sedition Laws of 1798 revived. 894 142. Conclusion 896 145. Appendix.- Constitution of the United States . 146. Appendix No. 2. The Test Vote. NEW YORK: D. APPLETON & CO., PUBLISHERS. 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