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H. G A L L I N G E R .

Mr. GALLINGER. I ask that the resolution of the Senator
from Massachusetts [Mr. LODGE] and the amendment proposed
by myself may be reported.
The PRESIDING OFFICER. The Senator from New Hampshire asks that the regular order be informally laid aside* for
the purpose of taking up a resolution, which will be read.
The Secretary read the resolution submitted by Mr. LODGE
August 8,1893, as follows:
Whereas Congress has been called In extraordinary session on account of
the unfortunate condition of business; and
Whereas some measure of relief can be obtained by the immediate and
unconditional repeal of the purchasing clauses of the silver act of 1890:
jResolved, That the Committee on Finance be instructed to report at once
t o the Senate a bill to repeal the purchasing clauses of the silver act of 1890,
and that a vote be taken in the Senate on said bill on Tuesday, August 22,
at 2 o'clock p. m., unless it is sooner reached.

Mr. GALLINGER. Now, let my proposed amendment be read.
The PRESIDING OFFICER. The amendment will be read.
The SECRETARY. It is proposed to add to the resolution the
And that said committee be also directed to report to the Senate that in
its opinion it is inexpedient and unwise for Congress to .attempt to radically change the existing tariff laws of the United States prior to March 4,

Mr. GALLINGER. Mr. President, in cominon with the junior
Senator from Massachusetts, and New England Republicans generally, I favor the repeal of section 1 of the so-called Sherman
silver law, and am ready to vote for it at the earliest possible
moment. But I do not agree with the Senator that this muchabused law is largely responsible for existing financial evils. I
admit that the repeal of the purchasing clause of this statute
will undoubtedly do something toward restoring confidence
abroad in our financial system, and that as a result we will be
bsnefited by an increased demand for our securities in foreign
countries, for which we shall receive gold in exchange.
I do not pretend to special knowledge of the financial question;
but lifter reading innumerable so-called " solutions "of the problem, and listening to the able speeches already delivered on both
sides of this Chamber, I am irresistibly led to the conclusion
that one might as well attempt to cure bunions with sweetened
water as to expect that the repeal of the purchasing clause of the
Sherman silver law will entirely remove the existing financial
Recalling the strong words uttered against introducing political arguments into this discussion, I nevertheless propose to
speak plainly what I believe, whether it be political or otherwise, and whether it pleases or displeases my associates on either
side of this Chamber.

And in this connection it should not be forgotten that the political gauntlet W S thrown down by the President himself, when
he charged that the business and monetary disturbances of the
country are due to unwise laws enacted by the Republican party.
I believe, Mr. President, that the Sherman silver law has infinitely less to do with business depression to-day than the anticipated onslaught of the party in power on the McKinley tariff
law. A prominent newspaper in my State has well said:

Of all t h e senseless theories e v e r p r o j e c t e d b y a d e s p e r a t e p a r t y t o a c c o u n t
f o r h a r d t i m e s t h e o n e n o w a d v a n c e d by t h e D e m o c r a c y , t h a t b a n k s a r e s u s p e n d i n g , f a c t o r i e s closing, m e r c h a n t s f a i l i n g , a n d business g e n e r a l l y is
b e i n g p a r a l y z e d s i m p l y b e c a u s e the G o v e r n m e n t is a d d i n g t o the c i r c u l a t i n g m e d i u m of the c o u n t r y f o u r o r five m i l l i o n j u s t s u c h c o i n s a s h a v e b e e n
* i n u s e f o r fifteen years, and a r e n o w e a g e r l y taken b y e v e r y b o d y at their
f a c e value, i£ the silliest. H a r d t i m e s a r e u p o n us. H a r d e r t i m e s t h a n the
A m e r i c a n p e o p l e have s e e n o r dreaded s i n c e 1857, and t h e y g r o w h a r d e r e v e r y
d a y . T h e y a r e hard and are g r o w i n g h a r d e r b e c a u s e a p a r t y w h i c h h a s declared " w a r t o t h e death u p o n t h e p r o t e c t e d i n d u s t r i e s of t h e c o u n t r y " is i n
u n d i s p u t e d c o n t r o l of the l e g i s l a t i v e and e x e c u t i v e b r a n c h e s of t h e G o v e r n m e n t . T h e y w i l l g r o w n o b e t t e r until it is c e r t a i n t h a t t h i s p ^ r t y c a n b e
t u r n e d f r o m its p u r p o s e o r f o r c e d t o stay its h a n d ; until i t i s settled t h a t t h e
p r o t e c t i v e tariff is n o t t o be s m a s h e d .

It is a singular circumstance that in the history of the country
the cry of distress is always uttered by a Democratic President.
No Republican President ever found it necessary to tell the people of this country that its monetary and business interests were
in a deplorable condition. True, we had something of a panic
in 1873, due to oversjjeculation and the investment of fabulous
sums of money in railroad construction, but that was of small
account to the industrial interests of the country as compared
to the present alarming state of things. In 1857 a like disaster
to the present one overtook the country, and the similarity of
language then used by a Democratic President to that of the
present Chief Executive is strikingly instructive, even to the
extent of suggesting plagiarism. Look at the deadly parallel:


T h e earth h a s yielded h e r f r u i t s
a b u n d a n t l y ; o u r g r e a t staples c o m m a n d h i g h p r i c e s , and u p till w i t h i n
a brief p e r i o d o u r m i n e r a l , m a n u f a c turing, a n d m e c h a n i c a l o c c u p a t i o n s
h a v e l a r g e l y p a r t a k e n of t h e g e n e r a l
p r o s p e r i t y , w e h a v e p o s s e s s e d all
the elements of material wealth in
rich abundance, yet, notwithstandi n g these a d v a n t a g e s , o u r c o u n t r y i n
i t s m o n e t a r y i n t e r e s t s is a t p r e s e n t '
in a deplorable condition.
I n the m i d s t of u n s u r p a s s e d p l e n t y ,
w e find o u r m a n u f a c t u r e s s u s p e n d e d ,
o u r p u b l i c w o r k s r e t a r d e d , o u r priv a t e e n t e r p r i s e s a b a n d o n e d , and
thousands of useful laborers thrown
o u t of e m p l o y m e n t and r e d u c e d t o
w a n t . TJnder t h e s e c i r c u m s t a n c e s a
l o a n m a y be r e q u i r e d b e f o r e t h e c l o s e
of y o u r p r e s e n t session, b u t this, a l - ,
t h o u g h d e e p l y t o be r e g r e t t e d , w o u l d
p r o v e t o be o n l y a s l i g h t m i s f o r t u n e
when compared with the suffering
and distress prevailing a m o n g , o u r

"Wit"a p l e n t e o u s c r o p s , w i t h a b u n dant promise of remunerative prod u c t i o n and m a n u f a c t u r e , w i t h u n u s u a l i n v i t a t i o n t o safe i n v e s t m e n t ,
and with satisfactory assurance t o
b u s i n e s s e n t e r p r i s e , s u d d e n l y financial distrust and fear have sprung u p
o n e v e r y side.
Numerous moneyed institutions
have suspended because abundant
assets were n o t immediately availab l e t o m e e t the d e m a n d s of f r i g h t e n e d
depositors. Surviving corporations
and i n d i v i d u a l s a r e c o n t e n t t o k e e p
in hand the m o n e y they are usually
anxious to loan, and those engaged
i n legitimate business are surprised
t o find t h a t s e c u r i t i e s t h e y o f f e r f o r
loans, though heretofore satisfact o r y , are n o l o n g e r a c c e p t e d .
V a l u e s s u p p o s e d t o b e fixed a r e f a s t
b e c o m i n g c o n j e c t u r a l , and l o s s a n d
failure have involved every branch
of business.

Mr. President, it is well understood that when the last Democratic* national platform was constructed the party did not expect to come in possession of all departments of the Government.
They hoped for the election of their candidate for President, and
expected to carry the popular branch of Congress; but they had


no expectation that the Senate would be Democratic. Under
that condition of things they made a declaration which they
did not themselves believe, expecting to be able to hide behind
a wicked Republican Senate, and lay upon that body the blame
for failure to legislate on the tariff. Why, Mr. President, if the
Democratic party really believe what their platform declared—
if a Democratic President and Democratic Senators really believe it—what a spectacle it is for them to allow an unconstitutional law to remain on the statute books for over five months of
Democratic ascendancy without an effort to repeal it!
The fact is they do not believe that high tariff laws are unconstitutional; for they know that the Supreme Court of the United
States has repeatedly affirmed the constitutionality of such legislation.
My amendment gives the Democratic party an opportunity to
escape from their own folly. It puts off tariff legislation until
1897, when the Republican party will again be in power, the only
party that has shown, a capacity to deal with great economic
questions in this country.
Mr. President, we had prosperity for nearly three years under
the Sherman silver law, during which time we had a Republican President and a Republican Senate.
Elut the Democratic party wanted a "change." They induced
the laboring men of the country to vote with them, and the
change came. It came on the distinct issue that the existing
tariff law is a fraud and unconstitutional.
Then came unrest on the part of business men and manufacturers. They were confronted by this astounding Democratic
platform upon which the country had been carried. Business
operations were curtailed; capital, always timid, began to hide;
manufacturers became alarmed, and the small investors clamored
for their money. The result is known to all men.
This is a currency panic, not due to a scarcity of money in the
country, but due to hoarding, principally as a result of apprehension that the business of the country will be harmed by a
repeal of the tariff laws now on the statute books.
Mr. President, the manufacturers of New England are to-day
in actual distress, as the junior Senator from Massachusetts has
truthfully depicted.
In the last Congress, the Senator from Missouri [Mr. V E S T ]
grew eloquent over a report that reached his ears that the Middlesex mills in Massachusetts had paid a 36 per cent dividend.
Of course no such dividend had ever been paid, but it did service
in the campaign which fqllowed. To-day, instead of the mills
of Massachusetts or of New Hampshire paying 36 per cent or 6 per
cent dividends, their doors are closed, their spindles are idle,
and there must be some reason for this outside of the silver legislation of the Republican party. .
Let me call the attention of the Senate to three object lessons
that came to my attention only a few (lays before I left my home.
In the city of Nashua, N. H., is one of the largest boot and shoe
manufacturing establishments in the country. It employs almost
r,000 men, and for the months of June and July the books of that
establishment show that over $450,000 worth of manufactured
goads were sent away and less than $40,000 in cash was returned
to that establishment. Does any sane man believe that this condition of things is due to the silver legislation of any party in
this country?


Another object lesson is to be found in the great Amoskeag
corporation, in the city of Manchester, N. H., employing thousands of men, the largest cotton-manufacturing establishment,
I believe, in the entire country. To day, for the first time in
its history, the doors of that great manufacturing establishment
are closed and every spindle in it is silent.
Mr. PEFFER. Will the Senator permit me to ask him a
question for information?
Mr. GALLINGER. With pleasure.
Mr. PEFFER. I ask as to when the particular establishment
to which the Senator has ju3t referred was organized and began
business? Along in the fifties, was it not?
Mr. GALLINGER. About that time, as I remember.
Mr. PEFFER. How did that establishment manage to get
along under the tariff of 1857 f
Mr. GALLINGER. I have only this to say, that they did
manage to get along under the tariff of 1857, but they were not
so prospsrous at that time as they have been of late years, and besides, they did not pay one-half the wages under the low tariff
of 1857 that they have paid under the Morrill and the McKinley
tariff laws. They managed to get along during the troublous
times of 1873without closing their doors, but to-day, for the first
time in their history, their doors are closed and their spindles are
silent. How long that .condition of things will continue I do not
know, but I do know that absolute alarm pervades the manufacturing circles of New England to-day, and that they are very
fearful that disasters, such as language would be inadequate to
portray, are going to overtake the manufacturing industries'of
that portion of our country.
Now, Mr. President, do as anybody suppose that the wholesale
dry goods hohses are refusing to buy Amoskeag ginghams because
they are af L aid that when the bills come due they will be allowed
to pay them in dollars worth only 60 cents? Is it strange that
people do not buy Amoskeag ginghams for future use when the
great Democratic party is pledged to practically abolish the duty
on them, and open the home market to the stocks that have been
accumulating in England since the passaged the McKinley bill?
Is it any wonder that manufacturers hesitate about piling up
goods which they may be obliged to sell in free competition
with those produced abroad by labor costing only two-thirds
what they pay for it here? What is there strange about that,
and how will the repeal of the Sherman law help out that condition of things?
Is there anything mysterious in the fact that with an avowed
bitter and all-powerful enemy of every protected industry in
the White House, and with both Houses of Congress pledged to
carry out his destructive purposes, capital goes into hiding, industry ceases, and bankruptcy runs riot through the country?
I discover nothing mysterious in this matter. It is the logical
outcome of the triumph of a party pledged to the destruction of
high protection in this country.
The third object lesson that came to my attention was the fact
that the Antrim cutlery establishment in my State, a large manufacturing-industry employing several hundred hands, that has
built up one of the most beautiful villages in New England and
has given steady employment and high wages to an intelligent
community, has recently closed its doors for three or four days each
week for the first time in its his'tory. Almost at the very moment


when that establishment was closing its doors the consul of the
United States, Benjamin Folsom, a cousin of the President of the
United States, was making a speech to the operatives in cutlery
in the city of. Sheffield, in England. What did that officer of the
United States, a cousin of the President of the Unitsd States,
say to the men who are making cutlery in competition with the
cutlery manufacturers in this country? Among other things he
said to them:
There are m a n y things I should like to say. There are t w o or three practical things I c a n say t o y o u which are of m o r e Importance than any resume
of o u r history. England's greatest customer has been the United States;
and. In spite of tariffs that have been raised against foreign countries, there
is, and must continue t o be, a great and gigantic trade flowing f r o m England
t o America.

And as Mr. Folsom uttered those sentiments to that great meeting, being about to take his leave as consul to Sheffield, his
English hearers admiringly cried out, " Hear! Hear!"
Y o u have passed

Mr. Folsom said—

the w o r s t period; y o u have crossed the highest barrier that can be raised
between the United States and England In the way of trade obstruction.
[Applause.] I wiU tell y o u w h y this is. F o r the first time since the y e a r
1860 the Democratic party, which has been the party of free trade, is f o r the
first time in power, n o t only In the executive, but In both its legislative
branches. [Applause.] During the former term of Mr. Cleveland he w a s
blocked by the Senate standing between h i m and the House of Representatives, which w a s Democratic, and therefore n o bill could be passed which
w a s not in the shape of a compromise. W h e n the struggle c a m e o n f o r
t h e Presidential election last year the Democratic party, f o r the first time
i n i ts history, took fair and square ground, and made a straight out-and-out
issue between protection and tariff f o r revenue only. [Hear, hear.]
If y o u will pardon me. I will read to y o u the t w o slight planks i n the Democratic p l a t f o r m u p o n which the President of the United States w a s elected,
and u p o n which the Congress which is n o w in power, and which is to be convened upon the 7th of next month, was elected, and y o u will see that so s o o n
as the financial question Is disposed of, which is merely a preliminary, and
m u s t be disposed of before the regular meeting of Congress, the ne&t great
question is the tariff,^ in which y o u are interested, and which the President
and both Houses of Congress are pledged to reduce. [Applause.] The Democratic platform upon which Mr. Cleveland w a s elected says: " W e denounce
Republican protection as a fraud; a robber of the great m a j o r i t y of the
American people f o r a few. W e declare It t o be a fundamental principle of
the Democratic party that the Federal Government has n o constitutional
p o w e r t o Impose and collect tariff duties except f o r the purposes of revenue
only, and we demand that the collection of such taxes shall be limited to the
necessities of the Government when honestly and economically administered.
W e denounce the McKinley tariff law, enacted b y the Fifty-first Congress,
as the culminating atrocity of class l e g i s l a t i o n ; and w e indorse the efforts
made by the Democrats of the present Congress t o m o d i f y its m o s t oppressive features in the direction of free r a w materials and the cheaper manufactured goods that enter irrto general c o n s u m p t i o n ; and we promise its repeal as one of the beneficent results that will f o l l o w the action of the people
in introsting p o w e r to the Democratic party. Since the McKinley tariff went
i n t o operation there have been ten reductions of the wages of laboring men
t o one increase. W e deny that there has been any increase of prosperity to
the c o u n t r y since the tariff went into operation, and we point to the dullness
and distress, the w a g e reductions and strikes in the iron trade, as the best
possible evidence that n o such prosperity has resulted f r o m the M c K i n l e y

After reading that platform of the Democratic party, and emphasizing the fact that the Democratic party was the party of
free trade, Mr. Folsom, an officeholder of the United States, and,
be it remembered, a cousin of the President of the United States,
further said to the cutlery manufacturers of Sheffield:
I a m n o t s a y i n g one w o r d as t o whether protection o r free trade, o r a
tariff f o r revenue only, is the best thing f o r the United States o r not. I a m
simply giving y o u the facts, and y o u can j u d g e f o r yourselves. [Applause.]

In closing m y career in Sheffield as consul of the United States, it affords
me satisfaction to think that before another twelve months has rolled by
Sheffield will not be .subjected to the onerous and oppressive tariff duties
that have restricted her trade. [Applause.]

Think of it, Mr. President; think of it, Democratic Senators;
what a spectacle it was for an officeholder of the United States,
and a cousin of the President of the United States, saying to an
English audience that he was not discussing the question as to
whether the legislation of the Democratic party would aid the
United States or not—that seemed to be of no consequence—but
he was congratulating them that it would roll from Sheffield the
onerous burdens that are upon them at the present time! Is it
any wonder, Mr. President, when that utterance was being
made in the great city of Sheffield, that the cutlery manufacturers of New England were alarmed? Is it any wonder that
under those circumstances the only cutlery manufactory in my
State concluded to close its doors for a portion of the time?
The cutlery manufactured in New Hampshire is protected
under the McKinley tariff law sufficiently to enable it to be manufactured in competition with the cutlery made in Sheffield, England. But a consul of the United States, and a cousin of the
President, assures our English competitors that that tariff duty
is to be removed, and that they will have increased prosperity
at the expense of American manufacturers.
Will it be any wonder, under such circumstances, if American
cutlery establishments all over the country close their doors ? Is
it any wonder that American manufacturers refuse to accumulate
manufactured goods which they may have to sell in competition
with the product of the underpaid labor of English manufacturing towns ?
Mr. President, I do not desire to further detain the Senate;
Let the bill reported by the Senate Finance Committee, permitting banks to increase their circula tion to the par value of the
bonds deposited, be enacted into law. Then let this resolution,
amended as I propose, be promptly passed. Confidence in our
finances once be strengthened, both at home and abroad;
trade will brighten, and another era of prosperity, possibly equal
to the marvelous prosperity of the administration of President
Harrison, will speedily •
come to *
the people of the United*States.
Mr. HOAR. I now suggest that we have a vote on the resolution of my colleague [Mr. L O D G E ] .
Mr. PASCO. The Senator from South Carolina [Mr. B U T L E R ]
is not in his seat. He yesterday gave notice of an amendment
to that resolution, and I therefore suggest that the resolution
go over now.
Mr. HOAK. We might have a vote on the amendment of the
Sen tor from New Hampshire [Mr. GALLINGEK] in that case.
The PRESIDING OFFICER. Is there objection to the present consideration of the resolution?
Mr. COCKRELL. I think we had better proceed to the consideration of executive business, and therefore I move accordinglv.
The PRESIDING QFFICER. The question is on the motion
of the Senator from Missouri.
Tne motion was agreed to: and the Senate proceeded to the
consideration of executive business.