CHAPTER XX

PARTY ISSUES SINCE THE CIVIL WAR

The party of strict construction. The war and its consequences determined the political issues for at least twenty years after its close. The heat of civil strife fused all partizan elements into two divisions. These divisions aligned along the principles which originally divided the country into parties, namely, strict construction and loose construction. They coincided in name with the Democratic and Republican parties. This division was rational, both from a theoretical and an historical position. Historically, the Democratic party, standing for the largest liberty in both the individual and the State (not including the negro), is a strict construction party. Its theory would compel it to confine the exercise of power within the expressed authority of the Constitution. Also its position as a party out of power logically compelled it to accept the strict construction view of the Constitution, and for the same reason to take a negative, rather than positive, stand upon public issues.

The party of loose construction. On the other hand, the Republican party, the successor in political theory of the Whigs, who had been the successor of the Federalists standing for authority in government, is a loose construction party. Its theory would not admit of constitutional scruples in necessary legislation, but it would employ implied as well as expressed powers to secure such legislation. Also its situation as a party in power logically compels it to adopt the loose or

broad construction of the Constitution, and for the same reason to take a positive rather than a negative stand on public questions; hence the oft-repeated charge that the Democratic party is destructive in character, while the Republican party is constructive. This classification largely holds true since the However, before the war, the opposite was true. The positive and negative character of parties is not due so much to their theories, as to their situation.

Issues. The prominent issues since the war are comprehended under the following heads:

1. Those which grew out of the war as necessary consequences. 2. The Financial Question.

3. The Tariff Question.

4. The Civil Service Question. 5. Foreign Relations.

6. The Expansion Question.

7. The Trust Question.

Under these various captions can be classed most of the important issues which have attracted the attention of the country since the close of the Civil War.

Issues which grew out of the Civil War. Under the first head come the Reconstruction measures, the thirteenth, fourteenth and fifteenth amendments, and the status of the freedmen. Also certain phases of the currency question which grew out of the war, such as the large issue of Bonds, the Legaltender Acts, the National Bank Act, the Resumption Act, the sectional issue as expressed in the secret organizations in the South, the Enforcement Act, commonly called the "Force bill," the act placing congressional elections in cities of a certain size under Federal control, and the Civil Rights Law which was afterward pronounced unconstitutional by the Supreme Court of the United States.

Phases of the financial question. The financial question in the United States has appeared in numerous phases, under many forms, and on many different occasions. It compre

hends the establishment of the banking business, the history of the coinage question, the issuance of the United States notes commonly called the Greenbacks, the Legal-tender Acts, the resumption of specie payments, the issuance of gold and silver certificates, the issuance of the Sherman Treasury notes, as well as various other forms.

The National Bank. From 1836 to 1863 there were no National Banks in existence. Banking business was carried on by State institutions. In the latter year the present national banking system (1906) was adopted. It provided that any five persons may establish a National Bank. At first the minimum capital was placed at $50,000; later it was reduced to half that sum. It provided for a bank currency by issuing to the Bank, upon its deposit of national bonds with the comptroller of the currency, bank notes. At first these notes were not to exceed ninety per cent of the bonds deposited, but later this was increased to one hundred per cent. The notes are secured by the government and are receivable in payment of taxes. A large amount of the country's circulating medium is made up of these notes.

Unfortunate features. Certain features of the present banking system, as represented in the National Bank, subject it to severe attacks from its enemies. The fact that it receives an interest upon its bonds deposited with the comptroller of the currency, and also upon the loans which it makes, renders it subject to the charge of receiving double interest at the expense of the public. Also the fact that its very existence rests upon a deposit of United States bonds, makes a national indebtedness necessary for its continuance. This feature has always been unfortunate. It leads to the conviction among many citizens that our indebtedness will never be relieved so long as such a powerful factor as the National Banking business owes its life to the continuance of that indebtedness.

Legislation since the war. In 1873 gold was made the standard of value, and silver was coined as subsidiary coin

which was limited as a legal tender to small sums. The silver dollar, known as the trade dollar, was provided with 420 grains, heavier than the old silver dollar which contained only 412 grains. This trade dollar, intended to meet the competition with the Mexican dollar of 416 grains, was discontinued as a legal tender in 1877. The next year the Bland-Allison Act resumed the coinage of the silver dollar of 412 grains, and made it a legal tender for all debts. It also required the treasury to purchase and coin not less than $2,000,000 nor more than $4,000,000 worth of bullion per month. The next year, 1879, subsidiary silver coins were made a legal tender for an amount of ten dollars. In 1890 the act of 1878 was repealed, and the treasury was directed to purchase each month 4,500,000 ounces of silver bullion at the market price, in payment of which the government issued treasury notes. In 1893 the purchasing clause of this law was repealed. Coinage a party issue. In 1896 the campaign between the Republican and the Democratic parties was conducted upon the silver question. Prior to this date, efforts had been made to commit the Democratic party to the free coinage of silver. Mr. Cleveland, then the controlling personality of the party backed by the Eastern States, prevented the party from taking such a position. By 1896, through the almost united West and South, the Democratic convention adopted a platform declaring against monometallism and in favor of bimetallism, that is, against the use of but one standard in favor of a double standard. It declared that both gold and silver were the money of the Constitution, and the Act of 1873, which made gold the standard, was a crime against the people of the United States. It pronounced in favor of the "free and unlimited coinage of silver and gold at the present legal ratio of sixteen to one without waiting for the aid of consent of any other nation."

Republican position. The Republican party had already taken its position on the money question. Some time before the convention met, it was conceded that the money question

was to cut an important figure in the campaign. Ohio, McKinley's State, met in State convention in March, and adopted a plank declaring for the use of both gold and silver as standard money. It demanded such legislation either by international agreement or restrictions of law as would insure the parity of both metals. In its national convention, the party declared in favor of "sound money." It pronounced against the free coinage of silver, except by international agreement, and pledged itself to maintain the gold standard until such an agreement could be reached. It also pledged itself to maintain the parity of value of gold, silver and paper.

Campaigns of 1896, 1900. Upon this issue was conducted the whirlwind campaign that has gone into history as the Bryan Silver campaign. Aside from the Hard Cider campaign of 1840, it was the most exciting and spectacular campaign in the history of American politics. It resulted in a contest between the Eastern and central States on the one side, and the Western and Southern States on the other. It called out nearly 14,000,000 votes, with McKinley leading by a plurality of over 600,000. In 1900 the issue was again fought out between the two parties led by the same candidates. The results indicated that the silver issue had lost its hold upon the voter. In the campaign of 1904 the money question did not appear in the discussion.

Situation in 1860 its relief. The financial situation at the opening of the war was unfortunate. The treasury was empty, without enough money to pay the salaries of members of Congress. The nation's credit was not good, as indicated by the government offering to pay twelve per cent interest on bonds issued for the purpose of defraying running expenses. The exigencies of war rendered it necessary to secure an additional circulation. To meet the demands the treasury notes, popularly called the "greenbacks," were issued. In July, 1862, the first issue of $150,000,000 was made. Subsequent issues aggregated $300,000,000 more, making a total of