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enormous gold yield in California. The
powers made peace in 1856, and at the same
time the output of gold in California fell
off. Immediately the financial panic of
1857 came upon the country with disastrous
force. Though we had in these years
mined a vast amount of gold in California,
every bank in New York was compelled to
suspend specie payment. Four hundred
millions in god had been carried out of the
country in eight years to pay for foreign
goods that should have been manufactured
at home, and we had years of depression
and distress as an atonement for our folly."
'Then do you mean to imply that there
should be no reduction of the national
revenue?"

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"No; what I have said implies the reverse. I would reduce it by a prompt repeal of the tobacco tax, and would make here and there some changes in the tariff, not to reduce protection, but wisely foster

"Would you explain your meaning more fully?"

"Even suppose it were," said Mr. Blaine, "do you know the source from which it will be supplied? The tendency in Russia today, and in the Asiatic possessions of Eng-it. land, is toward a large increase of the grain supply, the grain being raised by the cheapest possible labor. Manufacturing countries will buy their breadstuffs where they can get them the cheapest, and the enlarging of the home market for the American farmer being checked, he would search in vain for one of the same value. His foreign sales are already checked by the great competition abroad. There never was a time when the increase of a large home market was so valuable to him. The best proof is that the farmers are prosperous in proportion to the nearness of manufacturing centres, and a protective tariff tends to spread manufactures. In Ohio and Indiana, for example, though not classed as manufacturing States, the annual value of fabrics is larger than the annual value of agricultural products."

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'But those holding the President's views," remarked the reporter, are always quoting the great prosperity of the country under the tariff of 1846.1

"That tariff did not involve the one destructive point recommended by the President, namely, the retaining of direct internal taxes in order to abolish indirect taxes levied on foreign fabrics. But the country had peculiar advantages under it by the Crimean War involving England, France, and Russia, and largely impairing their trade. All these incidents, or accidents, if you choose, were immensely stimu lating to the trade in the United States, regardless to the nature of our tariff. But mark the end of this European experience with the tariff of 1846, which for a time gave an illusory and deceptive show of prosperity. Its enactment was immediately followed by the Mexican War; then, in 1848, by the great convulsions of Europe; then, in 1849 and succeeding years, by the

"I mean," said Mr. Blaine, "that no great system of revenue, like our tariff, can operate with efficiency and equity unless the changes of trade be closely watched and the law promptly adapted to those changes. But I would make no change that should impair the protective character of the whole body of the tariff laws. Four years ago, in the act of 1883, we made changes of the character I have tried to indicate. If such changes were made, and the fortifying of our sea coast thus undertaken at a very moderate annual outlay, no surplus would be found after that already accumulated had been disposed of. The outlay of money on fortifications, while doing great service to the country, would give good work to many men."

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But what about the existing surplus ?'' "The abstract of the message I have seen, replied Mr. Blaine, contains no reference to that point. I, therefore, make no comment further that to endorse Mr. Fred. Grant's remark, that a surplus is always easier to handle than a deficit."

The reporter repeated the question whether the President's recommendation would not, if adopted, give us the advantage of a large increase in exports.

"I only repeat," answered Mr. Blaine, "it would vastly increase our imports while the only export it would seriously increase would be our gold and silver. That would flow out bounteously, just as it did under the tariff of 1846. The President's recommendation enacted into law would result, as did an experiment in drainage of a man who wished to turn a swamp into a productive field. He dug a drain to a neighboring river, but it happened, unfortunately, that the level of the river was higher than

the level of the swamp. The consequence need not be told. A parallel would be found when the President's policy in attempting to open a channel for an increase of exports should simply succeed in making way for a deluging inflow of fabrics to the destruction of home industry."

"But don't you think it important to increase our export trade?"

"Undoubtedly; but it is vastly more important not to lose our own great market for our own people in vain effort to reach the impossible. It is not our foreign trade that has caused the wonderful growth and expansion of the republic. It is the vast domestic trade between thirty-eight States and eight Territories, with their population of, perhaps, 62,000,000 to-day. The whole amount of our export and import trade together has never, I think, reached $1,900,000,000 any one year. Our internal home trade on 130,000 miles of railway, along 15,000 miles of ocean coast, over the five great lakes and along 20,000 miles of navigable rivers, reaches the enormous annual aggregate of more than $40,000,000,000, and perhaps this year $50,000,000,000.

The truth has been so long obscured by certain local questions of unreasoning prejudice that nobody can hope for industrial enlightenment among the leaders just yet. But in my view the South above all sections of the Union needs a protective tariff. The two Virginias, North Carolina, Kentucky, Missouri, Tennessee, Alabama, and Georgia have enormous resources and facilities for develoning and handling manufactures. They cannot do anything without protection. Even progress so vast as some of those States have made will be checked if the President's message is enacted into law. Their Senators and Representatives can prevent it, but they are so used to folfowing anything labelled 'democratic' that very probably they will follow the President and the progress already made. By the time some of the Southern States get free iron ore and coal, while tobacco is taxed, they may have occasion to sit down and calculate the value of democratic free trade to their local interests.,'

"Will not the President's recommendation to admit raw material find strong support?"

"It is into this illimitable trade, even "Not by wise Protectionists in our time. now in its infancy and destined to attain a Perhaps some greedy manufacturers may magnitude not dreamed of twenty years ago, think that with free coal or free iron ore that the Europeans are struggling to enter. they can do great things, but if they should It is the heritage of the American people, succeed in trying will, as the boys say, catch of their children, and of their children's it on the rebound. If the home trade in children. It gives an absolutely free trade raw materials is destroyed or seriously inover a territory nearly as large as all Eu-jured railroads will be the first to feel it. rope, and the profit is all our own. The If that interest is crippled in any direction genuine Free-trader appears unable to see the financial fabric of the whole country or comprehend that this continental trade will feel it quickly and seriously. If any not our exchanges with Europe-is the great source of our prosperity. President Cleveland now plainly proposes a policy that will admit Europe to a share of this trade.' "But you are in favor of extending our foreign trade, are you not?''

"Certainly I am, in all practical and advantageous ways, but not on the principle of the Free-traders, by which we shall be constantly exchanging dollar for dime. Moreover, the foreign trade is often very delusive. Cotton is manufactured in the city of my residence. If a box of cotton goods is sent 200 miles to the province of New Brunswick, it is foreign trade. If shipped 17,000 miles round Cape Horn to Washington Territory it is domestic trade. The magnitude of the Union and the immensity of its internal trade require a new political economy. The treatises written for European States do not grasp our peculiar situation."

"How will the President's message be received in the South?"

"I don't dare to answer that question.

man can give a reason why we should arrange the tariff to favor the raw material of other countries in a competition against our material of the same kind, I should like to hear it. Should that recommendation of the President be approved it would turn 100,000 American laborers out of employment before it had been a year in operation.'

"What must be the marked and general effect of the President's message?"

"It will bring the country where it ought to be brought-to a full and fair contest on the question of protection. The President himself makes the one issue by presenting no other in his message. I think it well to have the question settled. The democratic party in power is a standing menace to the industrial prosperity of the country. That menace should be removed or the policy it foreshadows should be made certain. Nothing is so mischievous to business as uncertainty, nothing so paralyzing as doubt."

G. W. SMALLEY.

THE NATIONAL CONVENTIONS OF 1888.

The Democratic Convention.

better than anything else, illustrate the lines THE Democratic party, being in power, of difference between them. One of the assumed the customary role of the majority lines was plainly drawn by President Cleveparty, and after a close struggle its National land's message to Congress. This paper Committee called its Convention at St. plainly advocated a reduction of tariff duties Louis, June 5th, two weeks in advance of with a view to reduce to the actual requirethe time fixed by the Republicans. The ments of an economic administration of sessions continued throughout three days, governmental affairs, the surplus in the being somewhat prolonged by the differences of opinion upon the platform, the immediate friends of the Cleveland administration desiring an unqualified endorsement of the Presidential message relating to the tariff, and as well to the Mills bill, the measure supported in the lower House of Congress by all of the Democrats save those led by Samuel J. Randall, who stood upon the platform "straddle" of 1884. Finally the differences were partially adjusted by a reaffirmation of the platform of 1884, and very decided endorsements of both the President's message and the Mills bill. The result was not satisfactory to the Protective-Tariff Democrats, but they were without large or courageous representation, and the platform was adopted with but one dissenting vote. (For platform and comparison of platforms of the Conventions of the two great parties, see Book II.)

treasury, then approximating $80,000,000. He opposed the repeal or reduction of the internal revenue taxes, upon the ground that the" were placed upon luxuries. Mr. Blaine answered this message for the Republican party, and opposed any system of tariff reduction which tended to free trade, and favored the repeal of the internal revenue taxes upon tobacco and upon all liquors used in the arts. So that the truthful and probably the most compact statement of the position of the two great parties is this: The Democratic party in the campaign of 1888 favors an established tendency to free trade; the Republican party opposes any such tendency, and rather than promote it in any way, would repeal all of the internal revenue taxes and enlarge the pension list-in this way disposing of the treasury surplus. The platform of the Republican party not only followed, but On the third day Grover Cleveland, of went beyond the expressed views of Mr. New York, was nominated for President by Blaine, and accepted in the plainest way acclamation. A ballot was started for the issue thrust upon the country by Mr. Vice-President, between Allen G. Thurman, Cleveland's message. The position of the of Ohio, and Governor Gray, of Indiana, two great parties had been anticipated by but before it closed Thurman's nomination their respective leaders, and both Convenwas so apparent that Gray was withdrawn, tions advanced beyond the lines laid down and the nomination made unanimous. In by these leaders, and entered upon the the midst of the applause which followed, campaign in this shape. the California delegation presented to the Convention thousands of the "red bandana worn by the "old Roman" Thurman, and it was immediately placed upon the standard of every State, and accepted as the emblem of the Democratic party.

The Republican Convention. The National Convention of the Republican party met in Chicago, June 19th, and continued its sessions until the evening of the 25th. Major McKinley, of Ohio, was the Chairman of the Committee on Platform, and on the second day made a unanimous report, which was adopted with great enthusiasm.

The platforms of the two great parties,

During the ballotings of the Republican Convention Mr. B'aine was upon all save the last solidly supported by the California delegation and by scattering votes On the last day Hon. Charles A. Boutelle, Chairman of the Maine delegation, read two cablegrams from Mr. Blaine, who was then in Edinboro, Scotland, asking his friends to respect his Paris letter of declination. It was at any time within the power of his friends to nominate him, but his final refusal led nearly all of them to vote for General Benjamin Harrison, of Indiana, at all times one of the leading candidates before the Convention. There was no general combination, but the nomination was largely traceable to the expediency of selecting both of the candidates from pivotal States.

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122 135 142 137 120 100
94 217 213 231
88 88 99 73
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278 544

Phelps
Bradly

76

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119

103

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Lincoln,

Miller,

3

McKinley, 2

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35 33 35 42 48 40 15 Total, 830 830 830 829 827 829 832 831

Mr. Griggs, of New Jersey, presented the name of William Walter Phelps, of New Jersey, for Vice-President, which was seconded by Mr. Gibson, of Ohio, Mr. Eagan, of Nebraska, and Mr. Oliver, of Iowa, and others.

Senator Warner Miller, of New York, presented the name of Hon. Levi P. Morton, of New York, which was seconded by Mr. Sage, of California, Governor Foster, of Ohio, Mr. Oliver, of South Carolina, General Hastings, of Pennsylvania, and others.

Mr. McElwee, of Tennessee, presented

Thomas

The nomination was then made unani

mous.

Mr. Boutelle, of Maine, then addressed the Chair and stated that he desired to offer a resolution to be added to the platform, as follows:

"The first concern of all good government is the virtue and sobriety of the people and the purity of the home. The Republican party cordially sympathizes with all wise and well-directed efforts for the promotion of temperance and morality."

As soon as this was read there was a rush from the various States to second the motion, and, after some time, the question was put and the resolution adopted by a rising vote, only one delegate from Maryland recording himself in the negative. In this way the above temperance sentiment was made part of the platform. It was due largely to the attitude of the Republican party within many of the States, where in the current and previous year it favored high-license laws and the submission to a vote of the people prohibitory constitutional amendments.

THE PRESIDENTIAL ELECTION OF 1888.

SHORTLY after the adjournment of the hundred thousand to their National ComNational Conventions, the National Committee. It was a business battle, largely mittees of the two great parties opened head- waged between the manufacturing and imquarters in New York City, Senator M. S. porting interests, the smaller farmers being Quay being Chairman of the Republican allies of the manufacturers, the planters National and Executive committees, with adhering to their support of the Free Trade full authority in one head, while ex-Senator tendencies of the Democratic party. The Barnum headed the Democratic National, literary and oratorical features of the canand Calvin Brice its Executive Committee. vass were not neglected, and tariff discussion Both Committees devoted themselves to was the order of the day and the night practical political work, and the result was throughout the entire country. The pivotal a greater expenditure of money than was States were, in the order of their importever previously known. From information ance, New York, Indiana, Connecticut, gathered by the writer, it can be safely New Jersey, West Virginia, and California. stated that the Democratic National Com- From the day of General Harrison's nomimittee, with its drafts upon the Federal nation, Indiana became, and continued, the office-holders, raised two millions of dollars, scene of the most intense political excitewhile the Republican business men and ment. Visiting delegations called upon the manufacturers contributed one million three nominee from every town and hamlet in

California

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ELECTORAL VOTE.
Harrison. I

Massachusetts

Ohio

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8 Alabama.

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3 New Jersey

4 North Carolina

36 South Carolina
23 Tennessee

3 Texas

30 Virginia
4 West Virginia

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233

168

Harrison's majority 65

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Here is a majority of 65 electors, and yet less than 3000 votes in New York, cast for Cleveland, would have reëlected him, but with grave danger to the country, because of disputed results in the two Virginias.

Pro. Labor.

THE POPULAR VOTE-1888.
Rep. Dem.
57,197 117,320

Alabama

the State, and the fever extended to adja-
cent States. The ordeal was a most trying
one for a candidate, and, for a time, there
Colorado
was grave fear that a mistake might be
Illinois
made, or a trap sprung, like that of Bur- Indiana
chard's upon Blaine in 1884; but General Iowa
Harrison was singularly fortunate in all of Kansas
his remarks, and yet so earnest and able Maine.
that his own work soon began to be recog- Michigan.
nized as the best of the campaign. Presi- Minnesota
dent Cleveland was compelled by his official Nebraska
duties, and probably by inclination, to keep Nevada
out of even the speaking part of the cam- New Hampshire
paign.
New York
Senator Quay regarded New York as the
sole key to the contest, and his determina-Oregon
Pennsylvania
tion to carry that State, even at the risk of Rhode Island
all others, was maintained with the greatest Vermont
firmness. The usual appeals came from Wisconsin
hopeful States, like Virginia, North Caro-
lina, Tennessee, and even Delaware and
Maryland, while alarming predictions as to
Michigan, Wisconsin, and Iowa flew thick
and fast; but the Republican National
Chairman, wisely clothed with absolute.
authority as general of the battle, kept up
his steady assault upon New York, and
organized so closely that the usual frauds in
New York City and Brooklyn became im-
possible. The wisdom of this policy was
confirmed by the result, and to it is directly
traceable the Republican victory which fol-
lowed. General Harrison carried New York Arkansas
by 14,000 plurality, while Governor Hill, California
the Democratic candidate for reëlection, Colorado
carried it by 18,000. This apparent polit- Connecticut.
ical phenomenon finds its explanation in the
liquor issue, which attracted wide attention
throughout the State. Warner Miller, the
Republican candidate, favored high license,
while Governor Hill opposed it.
The Northwest, always before believed to
be inclined to Free Trade, gave surprising
tariff majorities, while Kansas proved the
banner Republican State, giving over 80,000
for Harrison in a territory made up mostly
by farmers. Indeed, the farming excelled
many of the manufacturing sections in
showing tariff or Republican gains.
Results proved to be very close in Con-
necticut, the two Virginias, Maryland, and
Tennessee, and for a time the attitude of
the lower House of Congress was in doubt.
At this writing the Republican majority is
estimated at seven, and the new Congress
will have to consider more than a dozen
contested seats. The Republicans made a
net gain of one in the Senate by their suc-
cess in the counties of Sussex and Kent, in
Delaware. This was due to a quarrel be-
tween the Bayard and Saulsbury factions
of the State. New Jersey remained with
the Democrats, and the Republicans elected
General Goff for Governor of West Vir-
ginia, with three Labor men holding the
balance of power in the Legislature.

Delaware
Florida
Georgia
Illinois
Indiana

Iowa

Kansas
Kentucky

Louisiana
Maine

Maryland

583

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Massachusetts 183,447 151,990 8,641
Michigan 236,307 213,404 20,942
Minnesota 142,492 104,385
Mississippi
Missouri
Nebraska
Nevada

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155,154 183,800
30,181 84,941
73,734 50,482
99,761 106,172 5,358

5,225

622

130

2,690

1,345

1,241

4,542

15,341

1,097

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30,096
236,325 261,957

85,476

218

4,954

22 15,853

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108,425

80,552

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