History of the Indiana democracy, 1816-1916, Part 49

Author: Stoll, John B., 1843-1926
Publication date: 1917
Publisher: Indianapolis : Indiana Democratic Pub. Co.
Number of Pages: 1104

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All this has been accomplished in al- most every instance, in spite of the deter- mined objection and opposition of the Re- publican party. By this course of legis- Jation in fulfillment of pledges to the peo- ple, Indiana has been placed at the fore- front of all States in matters of this kind and kindred reform legislation, and we pledge ourselves to the maintenance and enforcement of these measures, while the Republican party stands pledged, at the first opportunity, to destroy, either by re- peal or amendment, the most important of these wise laws.

We congratulate the people of Indiana upon the upholding of the tax law of 1891, under which more than a hundred millions of dollars of corporate property has been added to the tax duplicate. And we espe- cially commend the action of the State offi- cers in charge in prosecuting and enforc- ing to a successful conclusion the provi- sions of said laws.

The other planks denounce in vigorous terms all forms of class legislation, includ- ing miscalled protection; the Mckinley tariff enacted by the Fifty-first Congress; approve the course of Senators Voorhees and Turpie; especially condemn "a small coterie of Senators who, masquerading as Democrats. by threats to defeat all tariff legislation have temporarily prevented the

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Democratic party from carrying out all of its pledges to the people for tariff reform, as announced in the Democratic national platform of 1892." (This was intended as a slap at Senators Arthur P. Gorman of Maryland, David B. Hill of New York, James Smith of New Jersey and Calvin S. Brice of Ohio.)

The platform further commends the ac- tion of Congress in placing on the free list raw materials; in reducing duties on iron ore and coal and on woolens and on the necessities of life. The income tax is ap- proved as a wise and equitable measure, designed to place a fair share of the bur- dens of government upon the property of the country, for the benefit of which the expenses of Government are so largely incurred. Further commended is the tax- ation of greenbacks and the repeal of odious election laws. An oath-bound or- ganization then known as the American Protective Association comes in for em- phatic denunciation. The importation of pauper labor is sharply condemned. Re- sponsibility for the hard times caused by panic is placed upon the shoulders of the Republican party. Arbitration for the adjustment of labor troubles is recom- mended. Declaration against the enact- ment of sumptuary laws. Repeal of the Sherman silver purchasing act is highly praised as a step in the right direction. Bi-metallism is specifically approved. The administrations of President Cleveland and Governor Matthews are heartily com- mended. Praise for the saviors of the Union, our gallant soldiers and sailors, is unstintedly bestowed.

REPUBLICAN PLURALITIES IN 1894.

The vote for the head of the ticket, Sec- retary of State, was: William D. Owen, Republican, 283,405; Captain Wm. R. My- ers, Democrat, 238,732; Charles A. Robin- son, Populist, 29,388; Winford M. Taylor, Prohibitionist, 11,157. Owen's plurality, 44,673.

FLURALITIES FOR REMAINDER OF THE TICKET.

-Auditor of State-

Americus C. Dailey 46,931

-Treasurer of State-

Frederick J. Scholz.

46,134

-Attorney-General-

William A. Ketcham

.46,464

-Clerk Supreme Court-

Alexander Hess

46,018

-Superintendent Public Instruction-

David M. Geeting

46,453

-Chief Indiana Bureau of Statistics- Simeon J. Thompson 46,517

-State Geologist-

Willis S. Blatchley

46,313

-Judge Supreme Court-First District-

James H. Jordan 45,742

-Judge Supreme Court-Fourth District- Leander J. Monks 46,064

All the Republican candidates for Con- gress were successful. Their pluralities in the thirteen districts were:

1. James A. Hemenway 2,290

2. Alexander M. Hardy 1,728

3. Robert J. Tracewell. 556

4. James E. Watson 434

5. Jesse Overstreet. 1,870

6. Henry U. Johnson 12,017

7. Charles L. Henry 4,343

8. George W. Faris 2,569

9. J. Frank Hanly 5,835

10. Jethro A. Hatch 3,935

11. George W. Steele 3,929

12. Jacob D. Leighty 2,513

13. Lemuel W. Royse 4,147

The Democratic congressional nominees were:

1. Arthur H. Taylor.

2. John L. Bretz.

3. Strother M. Stockslager.

4. William S. Holman.

5. George W. Cooper.

6. Nimrod R. Elliott.

7. William D. Bynum.

8. Elijah V. Brookshire.

9. A. G. Burkhart.

10. Valentine Zimmerman.

11. Augustus N. Martin.

12. William F. MeNagny.

13. Lewellyn Wanner.

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[CHAPTER XLVI.]

THE FREE SILVER PROPAGANDA

BROUGHT ABOUT NEW ALIGNMENTS AND A TREMENDOUS POLITICAL UPHEAVAL

HE panic of 1893 came about 1 very much as preceding panics had come upon the country. In its effect it was appallingly dis- astrous. Factories closed, banks suspended, business was pros- trated, bankruptcies became frightfully numerous, thousands upon thousands of workmen were thrown out of employment, the cry of distress came from every direction.

Although it is a matter of general knowledge that a panicky feeling was dis- cernible in industrial and commercial cir- cles during the latter part of the Harrison administration, responsibility for its bursting upon the country in all its feroc- ity was laid at the door of the Cleveland administration, which came into power March 4, 1893. The situation is thus brought to view by that distinguished Ohio publicist, Gen. Thomas E. Powell:

"The year 1893 will always be remem- bered as the date of one of the great com- mercial panics in this country. It was caused directly by the calamity campaign of the Republican newspapers of the coun- try, and indirectly by vicious legislation of the Republican party. Cleveland found a depleted treasury caused by the extrav- agance of a Republican Congress-the first billion dollar Congress of which the country can boast. Silver legislation en- acted by the Republican party in Congress had started the agitation of that question, which finally became a campaign issue in 1896. Also nearly six hundred millions of fiat money had been put in circulation by the Republicans and this along with three hundred and fifty millions of legal tender notes issued during the Civil War. had given the country a tremendously in- flated currency. Great inflation is as bad, if not worse, than too much contraction of the circulating medium. The balloon that bursts is more dangerous than an

empty one. It was the unreasonable ex- pansion of credit which had no foundation of business basis, accelerated by nearly a billion dollars of fiat money with nothing in the treasury back of it, which placed President Cleveland in a difficult position immediately after his inauguration. The bursting of the credit balloon was inevit- able and could not be avoided by Cleveland or the Democratic party.

"The hard times had commenced before the election of Cleveland and as it was well known into what position the Republicans forced the country through an unwise financial policy and the depletion of the treasury, the Republican press of the coun- try began to prophesy disaster and to preach ruin with an energy that has never been equaled since the days of Habakuk. They based their attack upon the ground that Cleveland and the Democratic party were in favor of a low tariff, completely ignoring the true condition of affairs. The assault was kept up against Cleveland and the Democratic party until the desired result, namely, the undermining of public confidence, was accomplished. They sowed the wind and the whole country reaped the whirlwind. Five hundred national banks closed their doors and the money strin- gency was felt all over the land. It should be added that failure of crops and labor troubles further aggravated the situation.

"On the 30th Grover Cleveland called a special session of the Fifty-third Congress to convene on August 7th. His reason for issuing this call was set forth as follows:

The distrust and apprehension concerning the financial situation which pervade all business circles have already caused great loss and dam- age to our people and threatened to cripple our merchants, stop the wheels of manufacture, bring distress and privation to our farmers and with- hold from our workingmen the wages of labor.

The present perilous condition is largely the result of a financial policy which the executive branch of the Government finds embodied in un- wise laws which must be executed until repealed by Congress.

"At the special session of Congress, Wil- son of West Virginia introduced a bill to repeal the silver purchase act, known as

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the Bland-Allison bill. Bland of Missouri offered a provision to authorize the free coinage of silver at a ratio of 16 to 1, which was defeated. Other proposals for the coinage of silver at ratios ranging from 17 to 1 to 20 to 1 were also made, but all were rejected. The Wilson bill finally passed.

"The silver question was injected into the national campaign of 1892, and as it became the paramount issue in 1896, a brief history of the white metal in Amer- ica is appropriate here. Previous to 1834 the ratio of gold to silver at the mints of the United States had been 1 to 15, while the ratio in the principal European coun- tries was 1 to 1512. This made it possible for Europeans to exchange fifteen and one- half parts of silver for one part of gold, retain the half part, send the fifteen parts to America and receive one part of gold therefor, thus having the half part for a profit. This was done extensively and gold flowed from the United States to Europe. To remedy this the ratio was changed by the act of 1834, making the ratio almost, but not quite, 16 to 1. Then gold did not leave the United States at all, but began to return to it, while silver flowed out rapidly because under the new arrange- ment banks in France, for instance, could exchange silver for gold and re-exchange gold for silver in America, making a profit. In order to keep this country with sufficient small coin for the needs of business, an act was passed in 1853 reducing the weight of fractional silver coins. In 1873 the coin- age of silver dollars was stopped. This brought a great deal of criticism upon Congress and the Government, and in 1878 the Bland-Allison bill was passed, which revived the coinage of the silver dollar of 4121/2 grains and required the purchase of not less than two million dollars and not more than four million dollars' worth of silver bullion per month and its coinage into dollars. This did not establish free coinage, for under free coinage any one taking bullion to the United States mint could have it coined into dollars. By the common practice and consent of the nations gold has always been recognized as the standard of values and the objection to the free coinage of silver is that it would introduce bi-metallism. Every nation has free coinage of gold. The objection to the free coinage of silver is that fluctuations in the market price of the white metal might

cause sudden and excessive exports of the metal that happened, for the time being, to be the more valuable in the markets of other countries. A double standard of gold and silver could be made possible only by the joint action of all the principal coun- tries in establishing the same fixed ratio. If the bullion in the silver dollar were equal to the face value of the coin no harm would come from free coinage, but the market value of silver fluctuates like that of any other commodity. The Secretary of the Treasury of the United States pointed out in 1887 that free coinage would lead either to the export of the silver dollar or to its depreciation. In 1893 the Bland-Allison bill of 1878 was repealed, an act which the advocates of silver resented and con- demned. From 1873 to 1896 the people of the South and West demanded with an ever-increasing clamor that silver be placed . upon a parity with gold at some fixed ratio. It was called the poor man's dollar to distinguish it from the rich man's dol- lar; which the gold dollar was called. They claimed also that there was not enough gold coin in the country to answer the needs of business. After the panic of 1893 the Government was unable to keep a suffi- cient amount of gold in the Treasury to secure the redemption of notes and United States securities in that metal. President Cleveland and his Cabinet believed that if the gold reserve should get so low that silver was used for such purposes there would at once be great financial distress; that the country would practically be upon a silver basis and that our credit would be ruined both at home and abroad. To secure gold the Government resorted to the sale of bonds, increasing the national debt by over two hundred and fifty million dollars and subjecting the Democratic President and his Cabinet to widespread condemna- tion. The sentiment in favor of the free coinage of silver became so widespread and intense that it became a plank in the national platform of the Democratic party in 1896 and six and one-half million citi- zens voted for it. It might be added here that the discovery of gold in Alaska pro- duced the conditions which the silver advocates demanded and the question has now been out of politics for some years."

In Indiana the silver question became the all-absorbing topic of discussion. In 1893 the Evansville Courier in the south-

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ern part of the State and the Huntington Democrat in the northern part, two news- papers that had strongly supported the renomination of Mr. Cleveland the year before, broke openly with the administra- tion upon its policy relating to the money question. John G. and George W. Shank- lin were then editing the Courier, while Fred T. Loftin performed a like service on the Huntington paper. The Mount Vernon Democrat, under the editorship of Mr. Sparks, adopted a similar policy. The Logansport Pharos and the South Bend Times championed moderation, concilia- tion and harmony. The Pharos presented its views in this form:

"The Illinois Democrats are going to have a red-hot fight over the silver ques- tion. A convention has been called to take action on the question of free coinage. The action is ill-advised. It will be time to meet the issue a year hence at the State con- vention. The party should not be pledged to free silver at the present time. There are a great many Democrats who are un- willing to be bound to free silver. They are not willing to follow party leaders into by-ways that may lead to disaster. The silver question is one that should be studied carefully, and after studying it men should be actuated by conviction. If a man is convinced after study that the free coin- age of silver will benefit his country, he should favor it. If, on the other hand, he is convinced that free coinage means ruin and disaster to the commercial interests of his country, he should oppose it."

The Indianapolis Sentinel and the La- porte Argus vigorously upheld the Cleve- land attitude on the money question, as did the Terre Haute Gazette, then ably edited by W. C. Ball, who is still among the living, though no longer devoting his talents to newspaper work. The argu- ments advanced in opposition to the free silver movement, in epitomized form, ran thus: "Free silver coinage means grant- ing the privilege to every holder of silver bullion, resident and non-resident, to take his bullion to the United States mint and have it coined into standard dol- lars free of cost, as the holder of gold

bullion does. Anyone can go into the market today and buy silver bullion at less than 70 cents an ounce. That ounce con- verted into coin would have a face value of $1.29. But the holder of gold bullion, when he takes 100 cents' worth of his bullion to the mint to coin, can only get 100 cents' worth of coin. The gold bullion man makes nothing by the transaction, but the silver bullion man would make 59 cents on every ounce of silver. There are a good many people who would look upon such a procedure on the part of Uncle Sam as rather too partial. When the two metals in bullion form at the ratio of 16 to 1 are of equal value, all would rejoice to see them coined on exactly the same terms."

A Democratic bi-metallist organization was formed at Washington. Senator Harris of Tennessee was placed at the head of this organization. Fred T. Loftin, secretary to Senator Turpie, was commis- sioned to form silver leagues in various parts of the country, especially in Indiana. When the Indiana Democratic Editorial Association met at Maxinkuckee in 1895 efforts were made to secure the adoption of a silver resolution. The proposition was debated at considerable length and with much earnestness. The principal speech in opposition was delivered by Jacob P. Dunn, of the Indianapolis Sentinel. It was a forceful argument and made a strong impression. Quietly a canvass was made to ascertain how a vote on the proposed resolution would probably result. This "feeler" revealed the probability of a tie. Therefore no action was advised. Imme- diately upon the adjournment of the edi- torial convention the Indiana Silver League was organized, with Allen W. Clark of the Greensburg New Era as president. He served in that capacity throughout the campaign. This league developed a good deal of energy by way of securing control of the organization of the Democratic State Convention of 1896. It was originally in- tended to make Senator Turpie the presid- ing officer of the convention, but on account

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of the impaired condition of his health it was deemed advisable to abandon this pur- pose. Thereupon Senator Robert C. Bell of Fort Wayne was agreed upon. This program was subsequently carried into effect. Senator Bell proved himself a very capable presiding officer. The convention, at the outset, was a stormy affair, but after the several speakers had relieved themselves of the belligerence that dwelt within their bosoms comparative quiet was restored. Not all ill-feeling had van- ished; that was hardly to have been expected. But when the gold standard champions found themselves outnumbered and outvoted, they made a virtue of neces- sity in so far as it was possible for them to do. They predicted humiliation and defeat, and left the convention hall with the consciousness of at least having done their utmost to prevent committal to what they declared to be a colossal political blunder.

In view of his prominent connection with the free silver movement in the 'nineties, the information contained in a memoran- dum kindly furnished by Mr. Loftin will be found quite interesting and instructive:

"In the midst of that campaign and later while I was handling politics on the Sentinel, both Mr. Bryan and Mr. Morss admitted to me that some safeguard in the platform against possible silver deprecia- tion would have strengthened us. But in those warm times it was difficult to get consideration of anything that looked like compromise. I suggested this: Inde- pendent 16 to 1. But if silver failed to rise to $1.29 plus under it, then the bullion owner pay to the Treasury the difference, this fund to be used to pay any holders of depreciated money if any such there should be. Mr. Morss was not in position to advo- cate this as effectually as he would have liked. In the convention of 1898 Mr. Ralston was chairman of the resolutions committee. We all felt that the Western people who had means were overconfident in 1896 and had failed to support us. This was true. Had not William P. St. John, New York banker, put up $17,500 sixty days before election of '96, the National Committee would have closed its doors. I

think the Huntington Democrat, under my management, was the only paper advocat- ing Mr. Bryan's nomination in 1896. I was cut off from being a delegate by reason of it. But, having been editor of the Macon (Ga.) News, briefly, in '94, I got the Georgia delegation and others to work with me to get Mr. Bryan on the resolutions committee, in such manner that he replied to Senator Hill. But in 1900 we were tired of the fact that the West, the mining States, had allowed us to 'hold the bag.' Hence I suggested to Mr. Ralston that Virginia had shown the way for an honor- able retreat and we followed Senator Daniels's declaration in 1900. I was then on politics on the Sentinel."

VEHEMENT DEMAND FOR COINAGE.

FREE

Under date of June 25, 1895, the follow- ing unequivocal demand for a free and un- limited silver coinage declaration came to me from that dauntless hero of innumer- able political battles, Judge David Sanders Gooding, long since gathered to his fathers. He maintained a law office at Indianapolis, but his place of residence was Greenfield, Hancock county. With characteristic frankness he gave utterance to his feelings in these unequivocal terms:

"Excuse me for saying that I most sin- cerely hope that the Democratic Editorial Association will not be coaxed, seduced or bulldozed into showing 'the white feather' on the money question. The fight is on and cannot and ought not to be dodged by any equivocal resolution. It is better to speak out now in unequivocal language. If the Democratic party of Indiana has been sold, conveyed and delivered over to the Goldbugs by Grover Cleveland, the sooner we know it the better. Be sure the De- mocracy of Indiana will never again be deceived by the word 'parity,' nor will they understandingly worship the golden calf. Nothing can save Indiana, in the next elec- tion, to the Democratic party but an un- mistakable and bold advocacy of the free coinage of silver money."

Well, my good old friend Gooding had the promptings of his yearning soul grati- fied by the adoption of a free silver coinage platform, both State and Nation, but when

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the verdict of the ballot was announced Indiana had given 18,001 against the free silver candidate and platform. Such is the irony of political miscalculation !

Pages upon pages might be filled with the reproduction of letters that came to me from all parts of Indiana, pro and con. But what good would their reproduction do? The writers of these letters were en- tirely sincere and honest in their beliefs, but how prone men are to reach erroneous conclusions and make false deductions from superficial observation !

Among my collection of old letters I ran across one that came to me from an excited politician in the State of Maryland. He animadverted with a good deal of vehem- ence on the instability and unreliableness of the Baltimore press as to political con- ditions in the West and asked me to give him "inside information" as to just how Indiana was likely to vote at the Presiden- tial election-"not for publication, only for myself and friends' satisfaction." As to Maryland, he assured me, Bryan would carry the State by "not less than 10,000 majority, matters not what the goldbug papers say." But I found later on after the votes had been counted that Maryland "went hell-bent" for Mckinley by 32,224 over Bryan, besides throwing in 2,507 votes for Buckner and Palmer!

Democrats who refused to accept Bryan as their leader and free coinage as their creed evidenced no disposition to apologize for their course. A fair idea of their feel- ings may be formed by perusal of the fol- lowing letter from the pen of Hon. Rufus Magee, who, upon the nomination of Bryan to the Presidency and the committal of the party to 16 to 1, tendered his resignation as a member of the Democratic State Com- mittee, of which he had been made a mem- ber by his district in January of that year. Mr. Magee had been active in Democratic

politics from early manhood. For years he was connected with the Democratic press of Indiana and during part of that time served as secretary of the Democratic State Committee. He officiated as Minis- ter to Norway and Sweden under Cleve- land. This is how he felt and how he ex- pressed himself after the smoke of battle had cleared away in 1896:

"Logansport, Ind., November 13, 1896.

"My Dear Mr. Stoll: . This whole business resulted as it should have re- sulted. The nomination of Bryan was a fatal mistake, and his canvass on the idea of free coinage an error that the people could not be brought to accept. Had the party at Chicago adhered to its principles as expressed in 1892 and nominated a rep- resentative man, we would have been de- feated, but with defeat we would have preserved our honor as a party, and in 1900 would have destroyed that last stronghold of protection and founded a financial system acceptable to all the peo- ple. Can we gather up the remnants, or has this whole miserable business left us not only defeated, but irretrievably broken into fragments, disorganized and dis- honored as a party? I wish I could sit down with you for a while and take an inventory of the remains. It would be a melancholy office, and perhaps on our separation we would be as uncertain of the future of the party as we are now. One thing this campaign settled, viz., Populism is not popular. It was embraced with the zeal of a harlot and abandoned with the effrontery of a prude. I hope it is done for and that all such coalitions and fusions are forever ended. ' From the beginning I would have nothing to do with it, and yet it was hard to divorce myself from my political associations. To you, my old and honored friend, I talked more freely than to any living man, and I believe I had your sympathy and respect. It is over now and I am content. A thousand good wishes for yourself and your household, and I am,

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History of the Indiana democracy, 1816-1916, Part 49

Author: Stoll, John B., 1843-1926 Publication date: 1917 Publisher: Indianapolis : Indiana Democratic Pub. Co. Number of Pages: 1104

Author: Stoll, John B., 1843-1926
Publication date: 1917
Publisher: Indianapolis : Indiana Democratic Pub. Co.
Number of Pages: 1104