A more difficult problem was presented by the Treasury surplus which, by old regulations savoring more of barbarism than of civilized polity, had to be kept idle in the Treasury vaults.The only apparent means by which the Secretary of the Treasury could return his surplus funds to the channels of trade was by redeeming government bonds; but as these were the basis of bank note issues, the effect of any such action was to produce a sharp contraction in this class of currency.Between 1882 and 1889, national bank notes declined in amount from $356,060,348 to $199,779,011.In the same period, the issue of silver certificates increased from $63,204,780 to $276,619,715, and the total amount of currency of all sorts nominally increased from $1,188,752,363 to $1,405,018,000; but of this, $375,947,715 was in gold coin which was being hoarded, and national bank notes were almost equally scarce since they were virtually government bonds in a liquid form.
As the inefficiency of the monetary system came home to the people in practical experience, it seemed as if they were being plagued and inconvenienced in every possible way.The conditions were just such as would spread disaffection among the farmers, and their discontent sought an outlet.The growth of political agitation in the agricultural class, accompanied by a thorough-going disapproval of existing party leadership, gave rise to numerous new party movements.Delegates from the Agricultural Wheel, the Corn-Planters, the Anti-Monopolists, Farmers'
Alliance, and Grangers, attended a convention in February, 1887, and joined the Knights of Labor and the Greenbackers to form the United Labor party.In the country, at this time, there were numerous other labor parties of local origin and composition, with trade unionists predominating in some places and Socialists in others.Very early, however, these parties showed a tendency to division that indicated a clash of incompatible elements.
Single taxers, greenbackers, labor leaders, grangers, and socialists were agreed only in condemning existing public policy.
When they came to consider the question of what new policy should be adopted, they immediately manifested irreconcilable differences.In 1888, rival national conventions were held in Cincinnati, one designating itself as the Union Labor party, the other as the United Labor party.One made a schedule of particular demands; the other insisted on the single tax as the consummation of their purpose in seeking reform.Both put presidential tickets in the field, but of the two, the Union Labor party made by far the better showing at the polls though, even so, it polled fewer votes than did the National Prohibition party.Although making no very considerable showing at the polls, these new movements were very significant as evidences of popular unrest.The fact that the heaviest vote of the Union Labor party was polled in the agricultural States of Kansas, Missouri, and Texas, was a portent of the sweep of the populist movement which virtually captured the Democratic party organization during President Cleveland's second term.
The withdrawal of Blaine from the list of presidential candidates in 1888 left the Republican Convention at Chicago to choose from a score of "favorite sons." Even his repeated statement that he would not accept the nomination did not prevent his enthusiastic followers from hoping that the convention might be "stampeded."But on the first ballot, Blaine received only thirty-five votes while John Sherman led with 229.It was anybody's race until the eighth ballot, when General Benjamin Harrison, grandson of "Tippecanoe," suddenly forged ahead and received the nomination.
The defeat of the Democratic party at the polls in the presidential election of 1888 was less emphatic than might have been expected from its sorry record.Indeed, it is quite possible that an indiscretion in which Lord Sackville-West, the British Ambassador, was caught may have turned the scale.An adroitly worded letter was sent to him, purporting to come from Charles Murchison, a California voter of English birth, asking confidential advice which might enable the writer "to assure many of our countrymen that they would do England a service by voting for Cleveland and against the Republican system of tariff." With an astonishing lack of astuteness, the British minister fell into the trap and sent a reply which, while noncommittal on particulars, exhibited friendly interest in the reelection of President Cleveland.This correspondence, when published late in the campaign, caused the Administration to demand his recall.Aspirited statement of the case was laid before the public by Thomas Francis Bayard, Secretary of State, a few days before the election, but this was not enough to undo the harm that had been done, and the Murchison letter takes rank with the Morey letter attributed to General Garfield as specimens of the value of the campaign lie as a weapon in American party politics.
President Cleveland received a slight plurality in the total popular vote; but by small pluralities Harrison carried the big States, thus obtaining a heavy majority in the electoral vote.At the same time, the Republicans obtained nearly as large a majority in the House as the Democrats had had before.
