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As soon as the Clerk of the House finished the calling of the roll and announced that a quorum had answered to their names, Mr. Brooks of New York rose and called attention to the fact that there were seventeen absent States, ten of which, belonging to the late Confederacy, were not called at all, and the remaining seven—New Hampshire, Rhode Island, Connecticut, Kentucky, Tennessee, Nebraska, and California—had presented no credentials of members, inasmuch as under their respective laws, Representatives to the Fortieth Congress had not yet been chosen. Among the absent were seven of the "old thirteen"—an absolute majority of the States which founded the Republic. The absentees in all amounted to eighty members; and on behalf of his political associates Mr. Brooks presented a formal protest, signed by every Democratic member present, "against any and every action tending to the organization of this House until the absent States be more fully represented." He asked that it be entered upon the Journal as the protest of the minority of the House. Under the rules the Clerk refused to receive or submit the paper for consideration, and the House immediately proceeded to the election of Speaker. Mr. Colfax was chosen for the third and last time. He received one hundred and twenty-seven votes against thirty cast for Mr. Samuel S. Marshall, a highly respectable Democrat member from Illinois. As before, Mr. Colfax, in his remarks when he took the chair, sought to present an embodiment of Republican policy on the current issues. He declared that "the freeman's hands should wield the freeman's ballot;" that "none but loyal men should govern a land which loyal sacrifices have saved;" that "there can be no safe or loyal reconstruction on a foundation of unrepentant treason or disloyalty."
The principal business of the session was to provide supplementary legislation to the Reconstruction Act which had been passed over the President's veto only two days before the new Congress assembled. That Act, from a variety of circumstances, had been forced through at the last under whip and spur. Upon close examination by the leading Republicans of both Senate and house it was found to be defective in many important respects, and especially to lack the detail necessary to give life and vigor to proceedings looking to the practical reconstruction of the Southern States. The two Houses therefore addressed themselves promptly to the task of supplying the necessary amendments and additions. On the 19th of March they sent to the President an Act prescribing in detail the mode for the registering of voters in the insurrectionary States, and for the summoning of a convention to frame a constitution preparatory to the re-admission of each State to representation. The Act declared that "if the constitution shall be ratified by a majority of the votes of the registered electors qualified to vote, at least one-half of all the registered voters voting upon the question, a copy of the same, duly certified, shall be transmitted to the President of the United States, who shall forthwith transmit the same to Congress and if it shall appear to Congress that the election was one at which all the registered and qualified electors in the State had an opportunity to vote freely and without restraint, fear, or the influence of fraud, and if Congress shall be satisfied that such constitution merits the approval of a majority of all the qualified electors in the State, and if the said constitution shall be declared by Congress to be in conformity with the provisions of the Act to which this is supplementary, and the other provisions of said Act shall have been complied with, and the said constitution shall be approved by Congress, the State shall be declared entitled to representation, and senators and representatives shall be admitted therefrom as therein provided."
The President promptly vetoed the bill. Among various objections he said, "This supplemental bill superadds an oath to be taken by every person, before his name can be admitted upon the registration, that he 'has not been disfranchised for participation in any rebellion or civil war against the United States.' It thus imposes upon every person the necessity and responsibility of deciding for himself, under the penalty of punishment by a military commission if he makes a mistake, what works disfranchisement by participation in rebellion and what amounts to such participation. . . . The question with the citizen to whom this oath is to be proposed must be a fearful one, for while the bill does not declare that perjury may be assigned for such false swearing nor fix any penalty for the offense, we must not forget that martial law prevails and that every person is answerable to a military commission, without previous presentment by a grand jury, for any charge that may be made against him, and that the supreme authority of the military commander determines the question as to what is an offense and what is to be the measure of punishment. . . . I do not deem it necessary further to investigate the details of this bill. No consideration could induce me to give my approval to such an election law for any purpose, and especially for the great purpose of framing the constitution of a State. If ever the American citizen should be left to the free exercise of his own judgment, it is when he is engaged in the work of forming the fundamental law under which he is to live. That is his work and it cannot properly be taken out of his hands."
The whole issue presented by this bill was but another of the countless phases of that prolonged and fundamental contest between those who believed that guarantees should be exacted from the rebel States, and those who believed that these States should be freely admitted, without condition and without restraint, to all the privileges which they had recklessly thrown away in their mad effort to destroy the Government. The strength of each side had again been well stated in the debates of the Senate and House and in the veto-message of the President, and no change of opinion was expected by either party from the reasoning or the protest of the other. The President's argument was therefore met by a prompt vote passing the bill over his veto, in the House by 114 ayes to 25 noes, and in the Senate by 40 ayes to 7 noes. The resistance was very slight, and the fruit of the great Republican victory of 1866 was now realized in the formidable strength which the President's opponents exhibited in both branches.
The session lasted until the thirtieth day of March, and though Congress had then completed all the business pressing upon its attention the Republican leaders would not permit an adjournment sine die. They decided to meet again in midsummer. The same necessity that had induced them to convene in March persuaded them that the President should not be allowed to have control of events for eight months without the supervision of the legislative branch of the Government. It was resolved therefore that Congress should meet on Wednesday, July 3d. The vigilance and determination evinced by this action did not prove useless or go unrewarded. Only a few weeks after Congress had taken its recess the danger anticipated by the Republican leaders, from hostile interpretation of the Reconstruction Acts by the Attorney-General, was made fully apparent. On the 24th of May and the 12th of June Mr. Stanbery gave two opinions to the President, which in many respects neutralized the force both of the original and supplementary acts of Reconstruction. His adverse views were elaborately and skilfully presented, and tended to embarrass the military commanders of the Southern districts in the administration of law, and to hinder the registration of voters and the holding of elections for constitutional conventions. Republican leaders therefore felt not only justified in the precautions they had taken to keep the power of Congress alive, but esteemed it peculiarly fortunate that they could so promptly prevent the evil effects which might otherwise flow from the unfriendly constructions of the Attorney-General. The principal business of the July session was to provide a second supplementary Act which effectually remedied all the objections and obstructions which Mr. Stanbery's acute legal knowledge had suggested. The bill passed both branches by the 13th of July and reached the President on the 14th—meeting at his hands the same fate that its predecessors had incurred. On the 19th he vetoed it—rehearsing the objections he had repeatedly stated on the same issues.
The President complained that within less than a year Congress had attempted to strip the Executive Department of the Government of some of its essential powers. "The military commander," said he, "is, as to the power of appointment, made to take the place of the President, and the General of the Army the place of the Senate, and any attempt on the part of the President to assert his own Constitutional power may, under pretense of law, be met by official insubordination. It is to be feared that these military officers, looking to the authority given by these laws, rather than to the letter of the Constitution, will recognize no authority but the commander of the district or the General of the Army. . . . If there were no other objection than this to the proposed legislation it would be sufficient. While I hold the chief executive authority of the United States, while the obligations rests upon me to see that all laws are faithfully executed, I can never willingly surrender that trust or the powers given for its execution. I can never give my assent to be made responsible for the faithful execution of laws, and at the same time surrender that trust and the powers which accompany it to any other executive officer, high or low, or to any number of executive officers."
Many of those who kept closest watch of the controversy between the President and Congress saw in the foregoing words something ominous. In their apprehensions of evil they construed it as a threat that the President would exercise his power as Commander-in-Chief of the Army and Navy with which he was fully invested by the Constitution, to change the assignment of military officers at will. Should he stubbornly or capriciously assert this power he might seriously embarrass the entire administration of the Reconstruction Acts in the approaching registrations and elections in the Southern States. A change of officers at a single point might frustrate all the preparations for the reconstruction of a State, and a general change might produce chaos in the South and possibly develop a spirit of violence of which no man could measure the effect. The President's words made a deep impression on Congress. Mr. Boutwell saw in them a deadly intent "which provokes and demands the exercise of the highest and gravest duty of this House"—meaning that the President should be impeached. Mr. Randall of Pennsylvania taunted Mr. Boutwell with the declaration that all the talk of impeachment was "mere bluster;" while Mr. Thaddeus Stevens, though believing that Mr. Johnson deserved impeachment, considered it "a vain and futile thing." "There are," said he, "unseen agencies at work, invisible powers operating everywhere in the country, which will protect a man like Johnson when called upon." Debate, however, was very brief, and the House passed the bill over the veto by ayes 108, noes 25. In the Senate there was no discussion whatever on the President's message, that body being content to pass the bill against his objections by 30 ayes to 6 noes.
The Senate and the House were both ready to adjourn on the 20th of July, but Mr. Sumner, Mr. Howard of Michigan, and others of the most radical type in both branches, desired that Congress might remain in session for the summer and autumn, or at least have such short vacations as would practically amount to a continuous session. Their object was to keep constant watch of the course of the Administration and be at all times ready to neutralize its evil purpose. Aside from the great personal inconvenience which this would occasion to many members, the judgment of the majority was against so radical a step. The more conservative members of the Republican party feared that a continuous session of Congress would seriously increase the uneasiness and excitement in the country by creating the impression that the Senate and House were sitting as a committee of public safety, in the apprehension of a civil revolution. The reply of those who opposed the adjournment was that the condition of public affairs did actually tend to revolution, and that instead of fanning the popular excitement by remaining in session, Congress would be thus most wisely allaying the fears which had entered the minds of so large a number of the people. But this argument did not prevail, and the conservative view secured a majority in both Houses. The vote in the Senate however was very close, there being only one more Republican in the affirmative that in the negative, leaving to Democratic votes, really, the decision of the question. A very inconvenient compromise was made by an adjournment to the 21st of November—only a fortnight before Congress would convene in regular annual session on the first Monday of December. No good reason was assigned for so extraordinary a step, and no benefit resulted from it.
The Reconstruction Acts, both original and supplementary, were now in full operation throughout the South. The President did not interpose serious objection to the assignment of the Army officers whose names were suggested by General Grant, and the ten insurrectionary States not yet re-admitted to representation were remanded to military government with apparent quiet and order. General Schofield was directed to take charge of the district of Virginia; General Sickles was placed in command of the district of North Carolina and South Carolina; General John Pope was assigned to the district of Georgia, Alabama, and Florida; General Ord to the district of Mississippi and Arkansas; and General Sheridan to the district of Louisiana and Texas. These assignments were made with due promptness after the enactment of the laws, and the several commanders at once proceeded to their novel and responsible duties.(1)
Under the enlargements of suffrage in the direction of loyalty, and its restrictions in the direction of disloyalty, the Southern States once more turned their attention to the question of Reconstruction. They saw, as the law intended them to see, that military government would exist until the loyal inhabitants of those States should present themselves before Congress with a constitution adapted to the changed circumstances resulting from the war, and to the necessities superinduced by the abolition of slavery. The Southern men who had defiantly rejected the Fourteenth Amendment, and had with confidence relied upon the power of President Johnson to vindicate their position, now discovered their mistake, and were reluctantly but completely convinced that the only road to representation in Congress for their States was through submission to the conditions imposed by the Acts of Reconstruction,—conditions far more exacting than those which had been required by the preceding Congress and which they had so unwisely refused to accept.
The assignments of Army officers to the Southern districts were made early in the spring of 1867. From that time onward it was hoped that the preservation of order would be secured in the South, and that the rights of all classes would be adequately protected. But notwithstanding the anticipation of this desirable result, there was throughout the summer and autumn of 1867 a feeling of great anxiety concerning the condition of the Southern States,—a constant apprehension that some outbreak similar to that in New Orleans the preceding year might lead to deplorable consequences, among the least of which would be the postponement of the organization of State governments. The cause of this solicitude among Northern people was the novel experiment in the South of allowing loyal men regardless of race or color to share in the suffrage and to participate in the administration of the Government. Under any less authoritative mandate than that which is conveyed in a military order with the requisite force behind it, the Southern communities would never have accepted or submitted to the conditions thus imposed. But the sympathy which their condition under other circumstances might have evoked in the North, was stifled by the pertinent consideration that they had refused other forms of Reconstruction, and had wilfully drawn upon themselves all that was unwelcome in the one now about to be enforced. It was to be noted moreover that the feature which was most unwelcome —impartial suffrage—was the one especially founded upon justice, abstract as well as practical.
Conventions were held successively in all the States, the elections being conducted in good order, while every man entitled to vote was fully secured in his suffrage. The conventions were duly assembled, constitutions formed, submitted in due time, and approved by popular vote. State governments were promptly organized under these organic laws, Legislatures were elected, and the Fourteenth Amendment ratified in each of the States with as hearty a unanimity as in the preceding winter it has been rejected by the same communities. The proceedings were approximately uniform in all the States, and the constitutions, with such minor differences and adaptations as circumstances required, were in all essential points the same. All were ordained in the spirit of liberty, all prohibited the existence of any form of slavery, and all heartily recognized the supreme sovereignty of the National Government as having been indisputably established by the overthrow of the Rebellion which was undertaken to confirm the adverse theory of State-rights.
These proceedings in the South were in full progress when the second or long session of the Fortieth Congress began, on the first Monday of December, 1867. While President Johnson had not interposed any obstructions to the working of the Reconstruction Act which had not been effectively cured by the two supplementary Acts, he had neither concealed nor abated his utter hostility to the policy of Congress,—a form of hostility that grew in rancor in proportion as he had been thwarted and rendered powerless by the enactment of the laws over his veto. When Congress came together he seemed to have gathered all his strength for a final assault upon its Reconstruction work and for a final vindication of his own policy. His message was laden with every form of attack which ingenuity could devise to throw discredit upon Congress, and if possible to affright the people by the dismal consequences destined in his judgment to follow the flagrant violation of the Constitution which he saw in the Reconstruction policy. He appealed to the people on the ground of patriotism, public safety, and personal interest. He pictured anew the advantage and the grandeur of having the old Union fully restored; he warned the people of the danger of sowing the seeds of another rebellion by allowing continued maltreatment of the Southern people; and he appealed to the commercial and financial interests of the country by pointing out how every form of property was endangered by the chaotic conditions of affairs to which, in his belief, the policy of Congress was steadily tending. Beyond these considerations he endeavored to arouse among the people all possible prejudice against negro suffrage. He declared that "of all the dangers which our Nation has yet encountered, none are equal to those which must result from the success of the effort now making to Africanize the half of our country." "We must not," said he, "delude ourselves. It will require a strong standing army, and probably more than two hundred millions per annum, to maintain the supremacy of negro governments after they are established,—a sum thus thrown away which would, if properly used, form a sinking-fund large enough to pay the whole National debt in less than fifteen years."
The argument of the President however was not merely a twice-told tale. It had been repeated many times and though never more artfully stated than now, it fell upon unlistening ears, making no impression whatever upon Congress and very little upon the country. The process of Reconstruction went on, and its first fruit was the presentation of a constitution from Arkansas, framed in exact accordance with the requirements prescribed by Congress, and accompanied by proof that the State had ratified the Fourteenth Amendment to the Constitution. A bill was introduced in the House by Mr. Stevens, on the 7th of May (1868), to admit the State of Arkansas to representation in Congress. The question of Reconstruction had been debated so elaborately and for so long a period of time that there was little disposition now to open the subject afresh, and with far less resistance than had been anticipated the Arkansas bill was passed in both branches, and the State declared entitled to all those rights in the Union which she, with her sisters in rebellion, had so flippantly thrown aside in 1861. A fundamental condition was attached to the admission, declaring "that the Constitution of Arkansas shall never be so amended or changed as to deprive any citizen or class of citizens of the United States of the right to vote, who are entitled to vote by the Constitution herein recognized, except as a punishment for such crimes as are now felonies at common law, whereof they shall have been duly convicted under laws equally applicable to all the inhabitants of said State."
The Act re-admitting Arkansas to the right of representation was followed immediately by one of the same general scope with respect to the States of North Carolina, South Carolina, Louisiana, Georgia, Alabama, and Florida. The same fundamental condition already cited as imposed on Arkansas was imposed on all these States, and the further condition was exacted from Georgia that certain provisions in her Constitution should be a solemn Act of her Legislature be declared null and void. The provision to be thus annulled related to the collection of debts, and their spirit and intent may be inferred from the opening declaration that "no court in the State shall have jurisdiction to try or determine any suit against any resident of this State upon any contract or agreement made or implied prior to the first day of June, 1865, or upon any contract made in renewal of any debt existing prior to the date named." The provision as the Georgia convention had framed it would have wrought great injury to a large number of creditors in the North. It was a complete outlawry of thousands of dollars legally and equitably due to honest creditors, and Georgia was compelled to agree to its nullification before her senators and representatives could be admitted to seats in Congress.
The bills admitting these States to representation did not secure Executive approval. On the 20th of June (1868) the President sent a message to the House of Representatives with his objections to the Arkansas bill. "The approval of this bill," said he, "would be an admission on the part of the Executive that the Act for the more efficient government of the rebel States, passed March 2, 1867, and the Act supplementary thereto, were proper and constitutional. My opinion however in reference to these measures has undergone no change, but on the contrary has been strengthened by the results which have attended their execution." He then proceeded to state his objections as he had so often done before, with no variation of argument, without the production of new facts.—Five days later, on the 25th of June, the President communicated his objections to the bill admitting the other Southern States to representation. He had apparently become fatigued with the reiteration of his arguments, and he frankly stated that he would not "undertake at this time to re-open the discussion upon the grave Constitutional question involved in the Reconstruction Acts." He declared that "the bill assumed authority over the States which has never been delegated to Congress," and "imposes conditions which are in derogation of equal rights." The vetoes did not evoke long debate in either House, and both bills were promptly passed over the objections of the President by a party vote, amounting indeed to more than three to one in both Senate and House.
In the arguments which the President had found such frequent occasion to submit, he quietly ignored the facts of secession, the crime of rebellion, the ruthless sundering of Constitutional bonds which these States had attempted. He took no note of the immense losses both of life and property which they had inflicted upon the Nation, and gave no consideration to the suffering which they had causelessly brought upon the people. If the President's logic should be accepted as indicting the true measure of Constitutional obligation imposed on the different members of the Union, then any State might rebel at any time, seize and destroy the National property, levy war, form alliances with hostile nations, and thus subject the Republic to great peril and great outlay, her citizens to murder and to pillage. If the rebellious State be finally subdued, the National Government must not attach the slightest condition to her re-admission to the Union; must not impose discipline or even administer reproof. The fact that the rebellion fails is the full warrant for its guilty authors to be at once repossessed of all the rights and all the privileges which in the frenzy of anger and disobedience they had thrown away. Such was in effect the argument of the President throughout the Reconstruction contest; such was the demand of the leaders of the Rebellion; such was the concession which the Democratic party constantly urged in Congress, through the press, and in all the channels through which its great power was exerted.
The position of the Republicans was steadily the opposite of that described. They held that the States which had rushed into a rebellion so wicked, so causeless, and so destructive, should not be allowed to resume their places of authority in the Union except under such conditions as would guard, so far as human foresight could avail, against the outbreak of another insurrection. They should return to the Union on precisely the same terms as those on which the loyal States held their places; they should have the same privileges and be subjected to the same conditions. As slavery had been the chief inciting cause of disunion, slavery should die. As the vicious theory of State-rights had been constantly at enmity with the true spirit of Nationality, the Organic Law of the Republic should be so amended that no standing-room for the heresy would be left. As the basis of representation in the Constitution has always given the slave States an advantage, these States, now that slavery was abolished, should not be permitted to oppress the negro population and use them merely for an enlarged Congressional power to the white men who had precipitated the rebellion. As the war to maintain Union and Liberty had cost a vast treasure and sacrificed countless lives, the States that had forced the bloody contest should agree by solemn amendment to the Constitution that the National debt and the pension to the soldier should be secured. Those conditions—applying to all the States alike, to the loyal and the disloyal in the same measure—must be honorably agreed to by the States that had gone into Disunion before they should be permitted to resume and enjoy the blessings of Union. History and the just judgment of mankind will vindicate the wisdom and the righteousness of the Republican policy, and that vindication will always carry with it the condemnation of Andrew Johnson.
The long contest over Reconstruction, so far as it involved the re-admission of the States to representation, was practically ended. Eight of the eleven Confederate States, at the close of June 1868, had their senators and representatives in Congress. Three—Virginia, Mississippi, and Texas—were prevented by self-imposed obstacles from enjoying the same privilege until after President Johnson had retired from office. Of the representatives on the floor of the Fortieth Congress from the eight states lately in rebellion, only two were Democrats. The senators were unanimously Republican. Of the aggregate number about one-half were natives of the South. The war upon the "Carpet-bagger" had not yet reached the era of savage atrocity, but the indignation pervading the governing classes of the South, as they were termed, was poured forth in unstinted measure upon the heads of all native Southerners who consented to accept offices conferred by negro votes. It was evident that the admission of the States to representation was to be taken as the signal for a new contest in the South—embittered in its character and sanguinary in its results. The men who had been foremost in plunging their States into the vortex of rebellion were determined to rule them—their determination being of that type which disregards the restraint of law and considers that the end justifies the means.
With all the advantages of old association and in numberless instances of kindly relation with the colored race, the former masters showed themselves singularly deficient in the tact and management necessary to win the negroes and bind them closely to their interest, in the new conditions which emancipation had created. Of the evil results that flowed from the contest now about to ensue—a contest that had many elements of provocation and of wrong on both sides—one of the most remarkable features was the complete control which the white men from the North, entire strangers to the negro, to his habits and to his prejudices, so readily obtained over him. The late slave-masters did not adapt themselves to the new situation. They gave way to repining and regretting, to sulking and to anger, to resentment and revenge, and thereby lost a great opportunity for binding together the two races in those ties of sympathy and confidence which must be maintained as an indispensable condition of prosperity, or even of domestic order and the reign of law, in the Southern States. The lack of moral courage among the physically brave men of the South has already been indicated and illustrated. It was something of this same defect that held back the slave-masters from the condescension, as they esteemed it, of establishing any relation whatever with the negro in his new condition of freedom. Such action was frowned upon by the public opinion of this class throughout the South, and for lack of bold leadership at the critical period, for lack of that consideration which in many subsequent instances has been lavished upon the colored man, the current of fatal prejudice was set strongly against the old master in the mind of his former slave. Events, as they developed in the stirring and sorrowful years that followed, were but a continual proof of that form of original blunder on the part of the Southern whites, which in affairs of civil administration is worse than a crime.
In excuse, or at least in explanation, of this unfortunate blunder on the part of Southern men, the obstinacy and wrong-headed course of President Johnson must be pleaded. It was his causeless, voluntary, unpardonable quarrel with his party which misled Southern men at the time when they most needed lessons of wisdom and moderation. The different result which we may well conceive might have followed in the South under the considerate and kindly spirit which Mr. Lincoln would have brought to the problem, gives us by contrast some faint appreciation of the enormity of Johnson's conduct and of the evil effects flowing from it. At the very moment when the President should have stood as a generous mediator, calming the irritation of the South —an irritation inevitably incident to defeat—and restraining somewhat, at least in the manner of preferring them, the demands and requirements which the Government in its hour of victory was justified in making, Johnson committed the grievous fault of espousing the Southern cause and quarreling with the party which had confided to him the power he was abusing.
Under the patronage and protection of the President, Southern men would have been more or less than human if they had not grown arrogant and defiant towards the men of the North. The chivalric sympathy which always moves the magnanimous in their treatment of a fallen foe, was therefore drowned in the indignation to which Northern men were naturally moved by provocations as unexpected as they were extraordinary. Stimulated by the protection of the President and encouraged by his contumacious quarrel with Congress, the South was driven from one unwise step to another, until the entire situation became hopelessly entangled, and every movement affected by anger and passion;—the North resolving more and more to insist on the fruits of victory, the South resolving more and more to act as though they had conquered in the contest. It was not unnatural, under the anxieties and discouragements of the crisis, that the South should have clung to Mr. Johnson for protection; but in the calm review which the lapse of twenty years affords, the most ardent Southern partisan must see that the President's policy was at enmity with the interest and happiness of his section.
It is not to be forgotten, however, that Mr. Johnson's course was marked by the inherent qualities of his mind. He had two signal defects, either of which would impair his fitness for Executive duty; united they rendered him incapable of efficient administration:—he was conceited and he was obstinate. Conceit without obstinacy may be overcome by the advice of judicious counselors; united with obstinacy it carries its possessor beyond the bounds of prudence, almost beyond the control of reason. Obstinacy united with good judgment is softened into the virtue of firmness. It has often been said that self-made men, as they are termed, are necessarily conceited. Like all aphorisms, this must be taken with numberless exceptions, but it was singularly applicable to Johnson, who was in all respects a self-made man. His great career was never absent from his thoughts, and he was always looking at himself as he fancied he would appear in history. He came to regard himself as the hero upon a remarkable stage of action, and naturally made the reflection that if he could have had in his early years the advantages which so many possess without improving, he would have made strides in life which would have left him without rivals. It would be impossible to gain a full and correct apprehension of Mr. Johnson's character without taking into account these qualities —qualities which were both the remote and immediate cause of his extraordinary career as Chief Magistrate.
The earlier Presidents, filled with the spirit of the convention that formed the Constitution, were extremely careful in the use of the veto-power. In eight years Washington used it but twice. Neither John Adams nor Thomas Jefferson used it even once. Madison resorted to it three times, Monroe only once, John Quincy Adams in not a single instance. Under the first six Presidents, the veto-power had been used but six times in all; unless there should be included some private bills sent back for correction and not in any sense furnishing matter of contest between parties. The country had thus been educated by the sages of the era of the Constitution in the belief that only an extraordinary occasion justified a resort to what, in the popular dislike of its character, had received the name of "the one-man power." President Jackson, therefore, surprised the country and shocked conservative citizens by his frequent employment of this great prerogative. During his term he thwarted the wish and the expressed resolve of Congress no less than eleven times on measures of great public consequence. Seven of these vetoes were of the kind which, during his Presidency, received the name of "pocket-vetoes."
In Madison's administration a bill which reached the President during the last ten days of the session failed by accident or inadvertence to receive the President's signature, and did not become a law. Mr. Webster is authority for saying that there was not a single instance prior to the administration of General Jackson in which the President by design omitted to sign a bill and yet did not return it to Congress. "The silent veto," said he, "is the executive adoption of the present administration." There had been instances in which, during a session of Congress, a President, unwilling to approve and yet not prepared to veto a measure, suffered it to become a law by the lapse of the Constitutional period of ten days; but it was an entirely new device, to defeat a bill by permitting the period of less than ten days to expire at the close of the session—defeat it without action, without expression of opinion, without the responsibility which justly attaches to the Executive office. Commenting with great power, at the time, upon the new use of the veto-power in all its forms by President Jackson, Mr. Webster declared its tendency was "to disturb the harmony which ought always to exist between Congress and the Executive, and to turn that which the Constitution intended only as an extraordinary remedy for extraordinary cases, into a common means of making Executive discretion paramount to the discretion of Congress in the enactment of laws." It was literally making the extreme medicine of the Constitution its daily bread.
An example set by so strong a ruler as Jackson, especially in the establishment of a practice so congenial to man's natural love of power, was certain to be followed by other Presidents. It was followed so vigorously indeed that the forty years succeeding Jackson's advent to power presented a strong contrast with the forty years that preceded it. The one began with Washington, the other ended with Andrew Johnson. Mr. Van Buren, though in all respects a lineal heir to the principles of Jackson, did not imitate him in the frequent use of the veto-power. But Mr. Tyler on nine different occasions ran counter to the action of Congress by the interposition of his veto. Mr. Polk resorted to it in three signal instances, but neither General Taylor nor Mr. Fillmore came in conflict with Congress on a single measure. President Pierce almost rivaled General Jackson in the ten vetoes with which he emphasized his own views as distinct from those of Congress. Mr. Buchanan used his arbitrary power on four occasions during his term. Mr. Lincoln permitted one bill to be defeated, as already noted in these pages, by expiration of Congress, and arrested the passage of another by direct use of his veto. President Johnson, who in many features of his career has been suspected of an attempted imitation of Jackson, far surpassed his great prototype in the use of the veto-power, employing it directly in no less than twenty-one instances, besides pocketing at least two bills of public importance. The aggregate number of vetoes, therefore, in the forty years that followed General Jackson's first election exceeded fifty, as against six for the forty years preceding it.
It will not escape observation that the most frequent resort to the veto has been by those Presidents who were chosen by the political organization which has always declared its hostility to Executive power. The Democratic party had its origin and its early growth in the cry against the overshadowing influence of the Presidential office —going so far in their denunciations as to declare that it was aping royalty in its manners and copying monarchy in its prerogatives. The men who made this outcry defeated John Quincy Adams who never used the veto, and installed Jackson who resorted to it on all occasions when his judgment differed from the conclusion of a majority of Congress. Neither Taylor nor Fillmore—both reared in the Whig school —ever attempted to defeat the will of Congress, though each wielded Executive power at a time when questions even more exciting than those of Jackson's era engaged public attention. Mr. Lincoln presents a strong contrast with his predecessors,—Pierce and Buchanan,—illustrating afresh the contradiction that the party declaiming most loudly against Executive power has constantly abused it. Mr. Tyler and Mr. Johnson were both chosen by the opponents of the Democracy, but they were both reared in that school, and both returned to it—exhibiting in their apostasy the readiness with which the Democratic mind turns to the tyranny of the veto.
The success of reconstruction in the South carried with it the ratification of the Fourteenth Amendment by the requisite number of States. The result was duly certified by Mr. Seward as Secretary of State, on the twenty-eighth day of July, 1868, and the Amendment was thenceforward a part of the organic law of the nation. It had been carried, from first to last, as a party measure—unanimously supported by the Republicans, unanimously opposed by the Democrats. Its grand and beneficent provisions failed to attract the vote of a single Democratic member in any State Legislature in the whole Union. Wherever the Democrats were in majority the Legislature rejected it, and in every Legislature where the Republicans had control the Democrats in minority voted against it. Not only was this true, but the States of Ohio and New Jersey, which had ratified it in 1866-67 when their Legislatures were Republican, formally voted in 1868, when the Democrats had come into power, to recall their assent to the Amendment and to record their opposition to its adoption. It is very seldom in the history of political issues, even when partisan feeling is most deeply developed, that so absolute a division is found as was recorded upon the question of adopting the Fourteenth Amendment. It has not been easy in succeeding years to comprehend the deep-seated, all-pervading hostility of the Democratic party to this great measure. Even on the Thirteenth Amendment, containing the far more radical proposition to abolish slavery, a few Democrats, moved by philanthropic motives, broke from the restraint of party and honored themselves by recording their votes on the side of humanity and justice; but on the Fourteenth Amendment the line of Democratic hostility in Nation and in State was absolutely unbroken.
It seems incredible that Democrats can be satisfied with the record made by their party on this most grave and important question. Every one of the many objects aimed at in the Fourteenth Amendment is founded upon a basis of justice, of liberty, of an enlarged and enlightened nationality. Its minor provisions might be regarded as temporary in their nature, but its leading provisions are permanent and are essential to the vitality of a true republic. Even those which may be held as temporary deeply affect more than one generation of American citizens, and are of themselves sufficiently important to justify a great struggle for their adoption.
It was certainly of inestimable concern to the honor of the country that those who had shed their blood and those who had given their treasure for its defense, should have their claims upon the national justice placed beyond the whim, or the caprice, or the malice of an accidental majority in Congress. Nor would it have been wise to leave open to those who in the conflict of arms had lost their slaves, the temptation to besiege Congress and the Legislatures of their States for compensation. Such an opportunity would have been a menace to the public credit, and would have proved a constant source of corruption. The Republican therefore said, "We shall incorporate the right of the soldier to repayment, in the very Constitution of the Republic; and shall in the same solemn manner decree that as slavery instigated the drawing of the sword against the life of the nation, and justly perished by the sword, its assumed value shall not be placed upon the free people of the United States as a mortgage whose payment may be exacted from their property and their toil." Against these just provisions, which in their nature are limited as to time, the Democrats in Congress and in every Legislature of the Union recorded an absolutely unanimous vote.
Another provision of the Fourteenth Amendment, temporary in its application, indeed necessarily limited to the existing generation, was demanded by the Republicans. The great mass of those engaged in the Rebellion were pardoned the moment their arms were laid down. But the leaders who, in official position before the war, had solemnly sworn to support the Constitution, were held to be far more guilty than the multitude who followed them. They deliberately rebelled against a government to which, on their consciences and on their oaths, they had given their personal pledge of fidelity. The Republicans did not propose to visit even these chief offenders with pains and penalties; but they resolved to place in the Constitution a prohibition upon their holding office under the National government until after two-thirds of both branches of Congress, satisfied of their good intentions, should remove their disabilities. The Democrats unanimously voted against even this mild discipline to those who precipitated the desperate war, thereby declaring their willingness, if not their desire, that the most guilty should fare as well as the innocent; that for example Mr. Toombs might resume his seat as a senator from Georgia, Mr. Breckinridge as a senator from Kentucky, Mr. Benjamin as a senator from Louisiana, Mr. Jefferson Davis as a senator from Mississippi.
Still another provision of the Amendment which might prove temporary in its application, or might prove permanent, as the South should decide, was that relating to representation in Congress. On this point the Republicans held, as has been so often repeated, that the negro should not be included in the basis of representation until he was admitted to suffrage. There is such absolute justice and fair dealing in this proposition, that no reply which deserves to be called an argument has ever been made to it. The original provision in the Constitution by which three-fifths of the slaves were enumerated in the basis of representation, agreed to originally as a compromise in connection with the subject of direct taxation, had lost its relevancy by reason of emancipation as decreed in the Thirteenth Amendment. The question now before Congress was therefore a new one. It affected the rights of States and the equality of citizens. To concede four and a half millions of negroes to the basis of Southern representation, and at the same time to confine the suffrage to the whites, was not merely a harsh injustice to the colored race, but it was an insulting discrimination against Northern white men. It gave, as was well said at the time, a far greater influence in National affairs to the vote of the Confederate solider in the South than to the vote of the Union soldier in the North. In Congressional districts where the colored race constituted one-half of the total population (and in many instances the proportion was even larger), the vote of one white man offset the vote of two in a Northern district where suffrage was impartial. This ratio of influence went into the Electoral College, and gave to the white men of South Carolina, Mississippi and Louisiana double the power of that enjoyed by white men in New York, Illinois and California. The loss of Representatives to the Northern States, or more properly speaking the gain to the Southern States on existing numbers, would be nearly one-eighth of the entire House, and fully one-quarter of those likely to occupy seats on the Democratic side of the chamber. In the Electoral College, the loss to the North and the gain to the South would be nearly in the same ratio. In the rapid increase of the negro race the offensive discrimination against the North would be continually enlarging in its proportions. The corrective provision in the Fourteenth Amendment was designed to prevent this grave injustice both to the negro and to the white man—but every Democrat in Congress and in the State Legislatures voted against it through all the stages of its enactment and its ratification, and thereby expressed a willingness to give an unfair advantage to the Southern white man, and to establish an unfair discrimination against the Northern white man.
Important and essential as are the provisions of the Fourteenth Amendment just cited, indispensable as they have proved in the system of Southern Reconstruction, they are relatively of small consequence when compared with that great provision which is for all time:—that provision which establishes American citizenship upon a permanent foundation, which gives to the humblest man in the Republic ample protection against any abridgment of his privileges and immunities by State law, which secures to him and his descendants the equal protection of the law in all that relates to his life, his liberty, and his property. The first section of the Constitutional amendment which includes these invaluable provisions is in fact a new charter of liberty to the citizens of the United States; is the utter destruction of the pestilent heresy of State-rights, which constantly menaced the prosperity and even the existence of the Republic; and is the formal bestowment of Nationality upon the wise Federal system which was the outgrowth of our successful Revolution against Great Britain.
Before the adoption of this Amendment citizenship of the United States was inferred from citizenship of some one of the States, for there was nothing in the Constitution defining or even implying National citizenship as distinct from its origination in or derivation from a State. It was declared in Article IV, Section 2, of the Federal Constitution, that "Citizens of each State shall be entitled to all the privileges and immunities of citizens in the several States;" but nothing was better known than that this provision was a dead letter from its very origin. A colored man who was a citizen of a Northern State was certain to be placed under the surveillance of the police if he ventured south of the Potomac or the Ohio, destined probably to be sold into slavery under State law, or permitted as a special favor to return at once to his home. A foreign-born citizen, with his certificate of naturalization in his possession, had prior to the war no guarantee or protection against any form of discrimination or indignity, or even persecution, to which State law might subject him, as has been painfully demonstrated at least twice in our history. But this rank injustice and this hurtful inequality were removed by the Fourteenth Amendment. Its opening section settled all conflicts and contradiction on this question by a comprehensive declaration which defined National citizenship and gave to it precedence of the citizenship of a State. "All persons born or naturalized in the United States and subject to the jurisdiction thereof are citizens of the United States and of the States wherein they reside." These pregnant words distinctly reversed the origin and character of American citizenship. Instead of a man being a citizen of the United States because he was a citizen of one of the States, he was now made a citizen of any State in which he might choose to reside, because he was antecedently a citizen of the United States.
The consequences that flowed from this radical change in the basis of citizenship were numerous and weighty. Nor were those consequences left subject to construction or speculation. They were incorporated in the same section of the Amendment. The abuses which were formerly heaped on the citizens of one State by the legislative and judicial authority of another State were rendered thenceforth impossible. The language of the Fourteenth Amendment is authoritative and mandatory: "No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty or property without due process of law, nor deny to any person within its jurisdiction the equal protection of the laws." Under the force of these weighty inhibitions, the citizen of foreign birth cannot be persecuted by discriminating statutes, nor can the citizen of dark complexion be deprived of a single privilege or immunity which belong to the white man. Nor can the Catholic, or the Protestant, or the Jew be placed under ban or subjected to any deprivation of personal or religious right. The provision is comprehensive and absolute, and sweeps away at once every form of oppression and every denial of justice. It abolishes caste and enlarges the scope of human freedom. It increases the power of the Republic to do equal and exact justice to all its citizens, and curtails the power of the States to shelter the wrong-doer or to authorize crime by a statute. To Congress is committed the authority to enforce every provision of the Fourteenth Amendment, and the humblest man who is denied the equal protection of the laws of a State can have his wrongs redressed before the Supreme Judiciary of the Nation.
It is perhaps not strange that the Democrats of the South were hostile to the great results wrought for freedom, for justice, and for popular rights by the Fourteenth Amendment. Their education, their prejudices, their personal interests had all been in the opposite direction, and it was doubtless too much to hope that all these would be overcome by a victory for the Union—a victory which carried to their minds a sense of personal humiliation and of remediless ruin. If their course was unwise it is not altogether unintelligible. But the action of the Northern Democrats cannot be accounted for and cannot be excused. They stood stubbornly, solidly, without reason, without justification, against a great enlargement of popular rights. It is a matter of wonder that a political organization which claims Jefferson for its founder and Jackson for its exemplar, should have surrendered to its rival the sole glory of an achievement which may well be compared with that increase of liberty attained by our ancestors, when the dependence of Colonies was exchanged for the independence of States.
Two eminent judges of the Supreme Court who died after the close of the war are entitled to the admiration and gratitude of the loyal citizens of the United States. When Mr. Lincoln was inaugurated there were three judges on the Supreme Bench from the States which afterwards formed the Confederacy,—James M. Wayne of Georgia, John Catron of Tennessee, and John A. Campbell of Alabama. The last-named was placed upon the bench in 1853, and was undoubtedly the choice of Jefferson Davis, who as the leading Southern member of President Pierce's Cabinet exerted large influence, if not absolute control, over appointments from the slave-holding States. The personal and political associations of Judge Campbell led him to resign his position on the Supreme Bench, and to give the weight of his name and his learning to the Confederate cause.
Judge Wayne was appointed by President Jackson in 1835, and Judge Catron by President Van Buren immediately after his inauguration in 1837, under a bill enlarging the Court, which had been approved by General Jackson. Judge Catron had long been a favorite of General Jackson in Tennessee, and it was understood that in appointing him to the Bench Mr. Van Buren was carrying out the expressed wishes of his predecessor. Both judges came from that earlier and better school of Southern Democracy which resisted the injurious heresies of State-rights and Nullification, sustained the Force Bill under President Jackson, and stood loyally by the Union of the States. They were allied to the South by birth, by education, and by the associations of a lifetime. Their friends, their kindred, even members of their own families, joined in the Rebellion. But these patriotic men, one of whom was born during the Revolutionary war and the other during the first term of Washington's Presidency, maintained their judicial positions and were unshaken in their loyalty to the Union. Their example was followed by few officials from the states that seceded, but the steadfastness of their faith was a striking illustration of the difference between the South of Jefferson and Jackson and the South of Calhoun and Davis. They sat on the Bench throughout the entire civil struggle,—Judge Catron dying in May, 1865, in the eighty-seventh year of his age, and Judge Wayne in July, 1867, in his seventy-eighth year.
The conduct of these venerable judges is all the more to be praised because they did not personally sympathize in any degree with the Republican leaders. They did not believe in the creed or the policies of the party, and feared the result of its administration of the National Government. Their views in regard to the Constitutional rights of the slave-holders were the same as those held by the Confederate chieftains. They had both concurred with Chief Justice Taney in the Dred Scott decision. But it was enough for them now to know that Mr. Lincoln had been Constitutionally chosen President of the United States, and had been Constitutionally installed in his great office. It was not for them as Justices of the Supreme Court to know any thing of his Executive acts, except as they might properly come for review before their high tribunal. They illustrated the honorable line of duty for a Judge under the Government of the United States. Off the Bench, his right to political opinions is no more to be questioned than that of any other citizen. On the Bench, he falls short of the full measure of his exalted duty if by any way or any expression he discloses his sympathy with one political party or his prejudice against another.
It is a tribute of honor to the Supreme Court that through all the mutations of its existence only a single Justice has proved unfaithful to the Union of the States; and prior to the war three-fifths of all the Justices were appointed from the South. Southern men in all other departments of the Public Service—those eminent in our Congressional annals, in the Army, in the Navy, in the field of Diplomacy, and even one who had occupied the Presidential chair—followed the lead of their States in rebellion against the Union; or rather it may with truth be said, they led their States into rebellion against the Union. Judge Campbell, in furnishing the sole exception to the record of judicial loyalty, did not yield without a struggle. He was surrounded with peculiar embarrassments, and was not strong enough to overcome them. He realized his position, and did what he could to avert war; but when war was inevitable, he upheld the Confederate cause and became one of its directing minds. In contrast with the fall from his high estate and over against all the evil influences which forced Judge Campbell to his fate, the names of Catron and Wayne will shine in history as examples of the just judge and the incorruptible patriot.
[(1) The President's personal hostility to some of the officers thus assigned was well known, and surprise was expressed that he did not countermand or qualify the order of General Grant when first issued. He was especially unfriendly to General Sheridan, and late in the summer of 1867 relieved him from his command. General Hancock was gazetted as Sheridan's successor, but he did not reach his post until late in November, the district meanwhile being under the command, first, of General Charles Griffin, and, second, of General Joseph A. Mower. General Hancock's order assuming command, issued on the 29th of November, had a certain political significance. He expressed gratification "that peace and quiet reign in the Department," and that in his purpose to preserve this condition of things, he regarded "the maintenance of the civil authorities in the faithful execution of the laws as the most efficient under existing circumstances." He said that when insurrectionary force had been overthrown and peace established, "the military power should cease to lead, and the civil administration resume its natural and rightful dominion." "Solemnly impressed with these views," the General announced that "the great principles of American liberty are still the lawful inheritance of the people and ever should be. The right of trial by jury, the habeas corpus, the liberty of the press, the freedom of speech, the natural rights of persons, and the rights of property, must be preserved."
General Sheridan had issued an order defining the qualifications of those who might sit on juries during the period of Reconstruction. One of the first acts of General Hancock was to annul this order. He declared "that the determination of who shall and who shall not be jurors appertains to the legislative power," and he indicated his intention of carrying out the existing law of Louisiana in regard to the selection of juries. General Sheridan had distributed certain memoranda of disqualification, together with questions to be proposed, for the registrars. Their effect in substance was to disqualify all persons who, having acted, prior to January 26, 1861, as United-States senators and representatives, electors, officers of the Army and Navy, civil officers of the United States, and State officers provided for by the Constitution of the State, had afterwards engaged in the Rebellion; and also all those who in 1862 and 1864 claimed the protection of foreign powers. General Hancock set aside this action, declaring that he dissented from the construction given to the Reconstruction laws therein, and ordered the registrars to be guided by their own interpretation of the laws and of the Fourteenth Amendment. It was the popular understanding that General Hancock, in these successive steps, was acting in full sympathy with the wishes and designs of the Administration, in all of which he readily concurred as a Democrat.
The appointment of General Pope for the District of Georgia, Alabama, and Florida, had not been agreeable to the President. General Pope's political convictions were of a very positive character, and they were not at all in sympathy with the National Administration. He administered the Reconstruction laws, therefore, in their full spirit and with an entire belief in their justice and equity. He insisted on fair dealing, and suppressed all interference with voters by violence or threats of violence on the part of the late rebels. He would not permit the menace of military organizations, and expressly refused to allow any parading of armed men, except of United-States troops. It was General Pope's opinion that the South had seen quite enough of men in arms within the past four years, and he believed that safety and order would be best maintained by having no uniform worn except that of the Army of the United States, and no other flag shown than the flag of the Union. Holding these pronounced views, aggressively loyal in every thought and action, General Pope was naturally in antagonism with the policy of the President. Towards the close of the year he was relieved of his command and General Meade ordered to take his place.
General Sickles, of the District of North Carolina and South Carolina, was relieved of his command early in September (1867), and General E. R. S. Canby appointed as his successor. General Sickles had been very energetic in the administration of affairs in his department, and had shown remarkable aptitude and efficiency in the discharge of his peculiar duties,—exhibiting in his administration the very qualities most likely to prove offensive to the President. He had perhaps the most difficult command of any of the generals on duty in the South, as the State of South Carolina had from the beginning of the Rebellion presented certain phases of disobedience to Federal authority peculiar to her population and naturally arising from her antecedent history. General Sickles had some trouble with Attorney-General Stanbery, and asked for a court of inquiry, that he might vindicate himself from the accusations of that official.
General Schofield and General Ord alone of the original commanders in the Southern military districts were left to carry through the work of Reconstruction. They both discharged their duties with intelligence and fidelity. Nor was the work of Reconstruction essentially hindered by the changed in other departments. It is the trained habit of the officers of the United-States Army to carry out their orders with implicit faith, and there is seldom a conflict as to the line of duty to be followed. If there was any exception, it was in regard to the course pursued by General Hancock. His conduct became a subject of controversy, and the popular division respecting its merits was on the political line. The National Administration and the Democratic party, both North and South, applauded every thing which General Hancock said and did in Louisiana. The Republican party throughout the country, and the General commanding the army, who was about to be nominated for the Presidency, united in strong disapproval of his course. But General Hancock's construction of the laws under which he was acting was the same as that held by the Attorney-General of the United States, and he thus felt abundantly justified and fortified in his position. He disobeyed no specific order of the General commanding the army, and, even if there had been a difference between them, General Hancock was sure of the sympathy and support of their common superior—the President of the United States.
It was however the subsequent opinion of General Grant that much of the disorder and bloodshed in the State of Louisiana during the national election of 1868 had resulted from the military government of General Hancock. It was not his belief that General Hancock had the slightest desire or design to produce such results, but that they were the outgrowth of the encouragement which the rebels of Louisiana received from the changes which General Hancock inaugurated in the manner of administering the Reconstruction Laws. Aside however from the conduct of General Hancock, the removal of General Sheridan from the Louisiana District was unqualifiedly offensive to General Grant in a personal sense, and contrary to his best judgment on ground of public policy and safety. His attachment to Sheridan was very strong, and a wrong against the latter was sooner or later sure to be resented by General Grant. His feelings of the question were promptly and significantly shown when he became President. Inaugurated on the 4th of March, he caused an army order to be issued on the morning of the 5th, restoring General Sheridan to his former command in Louisiana, and ordering General Hancock to the remote and peaceful Department of Dakota.]
CHAPTER XIII.
The financial experience of the Government of the United States in the years following the war is without precedent among nations. When Congress first met after the close of hostilities (December, 1865), it was as a ship sailing into dangerous and unknown seas without chart of possible channels. The Reconstruction problem before the country seemed at the time to be less difficult than the financial problem. Other nations had incurred great expenditures for war purposes, but had always left them in chief part as a heritage for the future. Great Britain will probably never pay the total principal of her public debt. France will be burdened perhaps as long as her nationality endures by the debts heaped upon her through the ambition of her sovereigns, and in her own struggles to enlarge the liberty of her people. But in this country the purpose was early formed, not simply to provide for the interest upon the debt incurred in the war for the Union, but to begin its payment at once, and to arrange for its rapid liquidation. In view of the magnitude of the sum involved this was a new undertaking in the administration of Government finances.
The difficulties of the situation were undoubtedly aggravated and complicated by the questions which arose from the condition of the Southern States. Could Congress expect at once that the populations in those States would begin to contribute to the revenue, would cease to require large expenditures for the maintenance of the National authority, would again add to the volume of our exports, to our commerce, and our general prosperity? Serious re-action had in other lands followed the financial expansion created by great wars, even without complications similar to those which the disturbed condition of the South seemed to render unavoidable. Ought Congress to accept such a re-action as the necessary condition of the restoration of our currency, of return to a normal situation, of adjustment of expenditure to revenue on a peace footing? Could the possibility be entertained of such a return and such an adjustment, without panic, without paralysis of industry, without temporary interruption and prostration of commerce? Grave apprehensions were felt as to the possible effect upon production and trade of the legislation required to maintain the National credit. These apprehensions derived force and peculiar seriousness from the growing conflict between President Johnson and Congress upon measures of Reconstruction and upon removals from office.
In spite however of all suggested fears and doubts, a feeling of confidence pervaded the country, and was fully shared by Congress, that the power which had saved the Union could re-establish its credit without panic and without dangerous and prolonged depression. Faith in the resources which had equipped and supported the National armies, now embraced the plainer and less exciting duties of funding and paying the debt and of protecting the notes of the United States. The loans had been placed, the money borrowed, under the excitement of war,—sometimes under the pressure of defeat, sometimes in the exaltation of victory. Without this pressure, without this exaltation, could money be secured at a rate adequate to build up a National credit worthy to be compared with that of the older and richer nations beyond the Atlantic?
The intrepidity with which Congress met its task will always compel the admiration of the student of American history. While the war lasted, the contributions by taxes and by loans had been on a munificent scale. The measures adopted at the close of the Thirty-eighth Congress, after four years of desperate struggle and on the very eve on National victory, showed as great readiness to make sacrifices, as little disposition to count the cost of saving the Union, as had marked previous legislation. Less than six weeks before the surrender of Lee the internal taxes were increased, the duties on imports were adjusted to that increase, and a new Loan Bill was enacted. The bill provided for borrowing, in addition to the authority given by previous Acts, any sum not exceeding $600,000,000 in bonds, or treasury notes convertible into bonds, at six per cent interest in coin or seven and three-tenths per cent interest in currency. This provision was found to be so comprehensive that it not only provided a strong instrumentality for meeting the immense demands incident to the disbanding of the armies and the final settlement of claims connected with that momentous change in our affairs, but also laid the foundation for the policy of funding the debt at a reduced rate of interest. These results testify to the magnificent proportions of the financial legislation during the period of hostilities.
When the Thirty-ninth Congress met in December, 1865, gold stood at 147-7/8 @ 148-1/2. A month later, on the 1st of January, 1866, the legal-tender notes and fractional currency amounted to $452,231,810; notes bearing 7-3/10 per cent interest, to $830,549,041; compound-interest notes payable three years from date (a considerable proportion of which time had elapsed), to $188,549,041; certificates of indebtedness, payable at various dates within the current year, to $50,667,000; and the temporary loan, practically payable on demand, had reached the large sum of $97,257,194. These might all be called floating and pressing obligations, and their grand aggregate was $1,618,705,045. At the same time the amount represented by bonds (6's of 1861, 5-20's, and 10-40's) was $1,120,786,700,—showing a total National debt on New-Year's Day, 1866, of $2,739,491,745. If the National credit was to be maintained these sixteen hundred millions of floating obligations must be promptly placed on a basis that would give time to the Government to provide means for their ultimate redemption. President Johnson, in his message at the opening of the session, spoke of the debt not as a public blessing, but as a heavy burden on the industry of the country, to be discharged without unnecessary delay. This was the popular sentiment in all sections of the country, although in financial circles arguments were frequently heard in favor of creating interminable obligations and of adjusting the debt on a basis of permanency, after the European fashion. The reduction had indeed already begun, since the maximum of debt had been attained in the preceding August.
The Secretary of the Treasury, Mr. Hugh McCulloch, estimated that for the fiscal year ending with June, 1867 (for which Congress was about to provide), the revenue would exceed the expenditures by $111,682,818, and that the whole of our vast debt could be liquidated by annual payments within thirty years. Mr. McCulloch's plans were to take from the compound-interest notes their legal-tender quality, from the date of their maturity, and to sell six per cent bonds, redeemable at the pleasure of the Government, for the purpose of retiring both the compound-interest notes and the plain legal-tenders. He believed that the entire debt might be funded at five per cent, while the average of the annual interest now stood at 6-62/100 per cent. He pointed to harmony between the different parts of the Union and to the settlement of the relations of labor in the Southern States, as essential conditions to the best management of the National obligations.
The leading feature of Mr. McCulloch's financial policy was the immediate and persistent contraction of the currency. His argument in support of the policy, as given in his annual report, was not accepted by the country or by Congress without serious reservation; but his belief in the theory was strong and determined, and so far as the laws permitted he went on reducing the volume of paper in circulation until on the 12th of April, 1866, the sum of legal-tenders was brought down to $421,907,103. Financiers of the Eastern cities favored the policy of contraction, although the logical plea was urged against them that the country would grow up to the volume of currency if not harried and disturbed by new legislation. Manufacturers and the holders of their products, and many who had incurred pecuniary obligations in the expanded currency, took alarm at the rapidity with which the Treasury notes were withdrawn. The argument was urged that the heavy taxes could not be met if the withdrawal were so rapid, and that industry and trade would in consequence be paralyzed by the enforced fall in prices.
These opinions and apprehensions were developed in the debate which led to the passage of the Act of April 12, 1866. The subject was first introduced by Mr. Alley of Massachusetts. On the 18th of December (1865) he offered a resolution concurring in the views of the Secretary of the Treasury, in relation to the necessity for a contraction of the currency, with a view to as early a resumption of specie payment as the business interests of the country would permit. Under a suspension of the rules, without debate, 144 voted for the resolution, 6 against it, and 32 were not recorded. Two months later, on the 21st of February, 1866, Mr. Morrill, from the Committee on Ways and Means, reported a bill which, as he explained, would expand the authority provided by the Act of March 3, 1865, for funding interest-bearing obligations, so as to include non-interest-bearing obligations. The measure authorized the Secretary to exchange the bonds prescribed by the Act for notes or certificates, and power was given to negotiate them and make them payable either in the United States or elsewhere, but if beyond the sea at not over five per cent interest.
—Mr. Thaddeus Stevens declared that the bill put over sixteen hundred millions of Government paper under the absolute and uncontrolled discretion of the Secretary of the Treasury. "This is a tremendous bill," said he. "It proposes to confer more power upon Mr. McCulloch than was ever before conferred upon any one man in a government claiming to have a constitution."
—Mr. Hooper of Massachusetts magnified the financial achievements of the Government, urged the policy embodied in the bill, and insisted on the importance of restoring the currency to a sound condition at the earliest practicable moment. He controverted the suggestion which had been made to increase United-States notes to $1,000,000,000, on the ground that the value of that dollar would be constantly fluctuating. A minority of the commissioners appointed by the preceding Congress to inquire into the state of trade and commerce had presented a specious argument in favor of debasing the coinage, but Mr. Hooper dismissed the proposition summarily and argued strongly for a contraction of legal-tender notes.
—Mr. Hulburd of New York maintained that taxation could not be increased to meet the existing and maturing obligations of the Government. He held that under the Acts of June, 1864, and March, 1865, the Secretary had power to sell at home or abroad six per cent coin bonds in any amount to meet short obligations of the Government. "Under the proposed measure," he said, "authority is specifically asked to withdraw the fractional currency and legal-tender notes, in whole or in part, and to substitute bonds for them. The like power was never asked for Neckar or for Pitt. As a principle the proposition is dangerous." He protested vigorously against making any part of the public debt payable in foreign countries.
—Mr. John Wentworth of Illinois argued in favor of contraction, maintaining that the purpose of the pending bill was to make the Secretary of the Treasury master of the situation. "If we expect him to compete successfully with the most desperate body of men in the world we must confer upon him the necessary powers. The real question is, Shall our Government pay its pensions and all its employees and creditors in depreciated paper, when by borrowing a little money at six per cent it can bring its paper to par?" He charged that an immense lobby against the bill had thronged the hall, and was surprised to find importers among them. "But the importers have found," said he, "that a bloated currency bloats the fashions." He earnestly indorsed Mr. McCulloch as a cautious man, who would not be precipitate, no matter what power might be conferred upon him: "If we adopt his policy we shall wake up some morning and find the paper of our country at par."
—Mr. Pike of Maine doubted the necessity of enforced contraction; but if contraction was necessary, he was for taxing the circulation of national banks out of existence, and afterwards retiring greenbacks. "Once upon a specie basis," said he, "let the business of the country regulate itself." He proposed also to allow the States to tax the bonds of the United States.
—Mr. Price of Iowa asked: "Would any prudent and sensible business man who had given his note payable at his own option, without interest, be likely to give for it another note for the same amount payable at a certain time, with interest at six per cent semi-annually, in gold coin?"
—Mr. Scofield of Pennsylvania asked if the legal-tender notes were not, upon their face, payable on demand.
—Mr. Allison of Iowa insisted that "the Secretary of the Treasury does not propose to return to specie payments immediately, but he expresses the opinion that the reduction of greenbacks by the sum of one hundred million dollars will secure that result."
—Mr. Boutwell of Massachusetts was content to try the experiment of converting the interest-bearing obligations into long bonds, but was unwilling to go farther.
—Mr. Sloan of Wisconsin proposed an amendment to make "bonds and all other obligations of the United States hereafter issued payable in lawful money," but the suggestion met with no favor.
—Mr. Roscoe Conkling maintained that "in the first place, the Secretary of the Treasury has now the power, under the Act of March 3, 1865, to exchange any securities of the Government which bear interest for any other securities which bear interest. In the second place, he has the power to call in, to cancel, to annihilate, so that it shall never go out again, every particle of currency issued prior to June 30,1864; and the truth is, that substantially if not literally the whole of the currency was issued previous to that time." . . . "Only one power," said Mr. Conkling, "remains to be conferred upon him; and that is, the power to put his bonds upon the market when he pleases, where he pleases, as he pleases, sell them for money, and with that money purchase the outstanding obligations of the Government."
—Mr. Garfield argued that "under existing law, the Secretary can issue compound-interest notes and 7-30 bonds to meet current indebtedness; but these are the most expensive forms of government obligations, and therefore he ought not to use the power." He thought the proposed bill was necessary in the interest of the Government. He would "trust the Secretary to proceed cautiously in the path required by honor, to place our currency on a sound basis. . . . We have travelled one-third of the way since Congress met. Gold was then 148. It is now 130. Defeat this bill, and there will be a jubilee on Wall Street."
—Mr. Lawrence of Ohio opposed the bill, and presented a letter from Mr. Freeman Clarke, then Comptroller of the Currency, saying, "We have full power to fund every dollar of the floating debt without any legislation, and with no occasion for making any loan whatever."
—Mr. Morrill closed debate on the 16th of March; and the bill coming to a vote, was defeated,—ayes 65; noes 70. But on a motion to reconsider, it was again brought before the House on the 19th of March, and after brief debate was recommitted. When it re-appeared, four days later, it contained a proviso "that the Secretary of the Treasury shall not retire more than ten million dollars of legal-tender notes in the first six months after the passage of the Act, and not more than four million dollars a month afterwards; and shall make a report to Congress of his action under this provision." Mr. Morrill submitted a letter from Mr. McCulloch, expressing the opinion that "it will be a national calamity if Congress shall fail to grant additional powers to the Secretary." He added, that "the apprehension which exists, that if power is given to the Secretary to retire legal-tender notes the circulation will be ruinously contracted, is without any special foundation." The effect of the discussion was to strengthen the bill in the House where it was passed by ayes 83; noes 53.
The bill was favorably reported to the Senate from the Finance Committee, and came up for consideration on the 9th of April, under the charge of Mr. Fessenden.
—Mr. Sherman re-affirmed the objections made in the House, that the power conferred was greater than had ever been granted to any Secretary of the Treasury since the foundation of the Government. "The power," said he, "is absolute. The Secretary may sell securities of any form at any time and fund the whole debt. No present necessity exists for such grant of authority. The proviso for restricting contraction is not adequate for that purpose. By retaining a large balance in the Treasury, the Secretary can contract the currency without violating the proviso." He deemed it unwise "to place in the hands of any mortal man this absolute and extreme control over the currency."
—Mr. Fessenden said the true principle of this bill was, "that as soon as it can be done with safety, Congress means that we shall get back to the old system of specie payments. That is about all there is of it. The effect of rejecting the measure will be to say to everybody that the Government intends to keep depreciated paper in the financial market."
—Mr. Chandler of Michigan believed the measure "to be evil, and evil only; containing dangerous powers which should not be conferred, and which no man should be willing to accept." Mr. Howe of Wisconsin agreed with him.
—Mr. Guthrie of Kentucky (Secretary of the Treasury under President Pierce) pronounced it "necessary and proper to give this power to the Secretary." And Mr. Morgan of New York, agreeing with him, declared that he desired the bill "just as it is."
—An amendment to strike out the words authorizing the sale of the bonds elsewhere than in the United States was overwhelmingly defeated, ayes 7, noes 35. The bill was then passed by ayes 32, noes 7, and by the President's signature became a law on the 12th of April, 1866.
The discussion of this important financial measure illustrates the various phases of opinion prevailing both in Congress and in the country. The desire to return to a specie basis was general, and yet not a few clung to the legal-tender notes as a permanent and standard currency. While the argument in favor of contraction was prosecuted with great force, the possibility of going too fast, even in the right direction, was conceded by the wisest financiers. The natural disinclination of the American people to entrust unrestricted power to any officer was frequently and forcibly expressed. The policy of funding the obligations bearing interest was admitted on all hands, and for this purpose the sale as well as the direct exchange of bonds was approved. But the repugnance to accepting less than par, or allowing the possibility of such a rate, had its origin and support in the patriotic instincts and in the sound judgment of the people. The requirement of a report from the Secretary and the limitation of the extent of contraction, were the essential changes which made the measure acceptable.
The enactment of this bill presents in an instructive light the character of our financial legislation and the methods by which it is accomplished. As originally presented the bill had the approval of the Secretary of the Treasury and came before the House with the favorable report of the Committee on Ways and Means. Yet it had no such standing as in the British Parliament is given to a financial project of the Government. There, such a proposition would be definitely framed at the Treasury, and its details would be elaborated when first presented. The Chancellor of the Exchequer would state the full character of the measure and the reasons for asking its adoption. Opposition or question would be expected only from the benches of the rival party. Here, on the other hand, after the House, using its own judgment, had modified the bill, criticism and hostility came from the Treasury that had originally proposed it. Several prominent members of the dominant party were pronounced in opposition. Saved by parliamentary strategy when once defeated, the bill was started into new life by the adoption of restrictions upon the power and the action of the Secretary of the Treasury. These restrictions were shown to be necessary in the progress of the debate. Individual judgment asserted itself and the Act became the harmonious resultant of the conflicting opinions of the entire House.
Congress therefore did not enact anybody's theory. It put into the statute the prudent, cautious sense of the people. Recognizing the principle of funding the floating obligations, and of contraction as a means to resumption, Congress only responded to the common sense of its great constituency, in forbidding reckless haste, and in defining the rate of speed. The purpose of keeping in Congress the control of the rate of contraction was only a part of the general determination that the representatives of the people and of the States shall prescribe the methods of conduct as well as the principles and broad measures of administration. Every Government finds by practice the system of legislation and administration best adapted to its own wants. While ministerial power and a trained following, such as obtain in England, may possess advantages under the circumstances existing in the British Empire, it is the settled judgment of this country that a perfectly free discussion, enlightened but not restrained by departmental recommendation or by dictation of committees, is best adapted to the varied and conflicting wants of the whole people. And this was never better illustrated than in the financial bill whose important provisions have been under consideration.
The revenue laws received careful attention during this session. The chief measure was the Act of July 13, 1866. It came before the House with the assurance from the Ways and Means Committee that it would steadily and materially reduce internal taxes. The system of internal revenue which had been so elaborately and intelligently constructed for war purposes, yielded $310,906,984 for the fiscal year ending June 30, 1866. Reduction were now made in the taxes on several hundred articles of manufacture, on savings banks, on the gross receipts of certain corporations; and the income tax was in some degree mitigated. The total reductions were estimated at $75,684,000, but an increase was proposed on raw cotton amounting to nearly one-third of this sum. Prolonged discussion arose over this tax and resulted in a disagreement between the two Houses. The bill was finally perfected in a conference committee and ended by reducing the total internal revenue to $265,920,474 per annum—with all allowance made for the growth of the country and the elasticity of Government receipts.
Not satisfied with the large reduction of taxes made at the first session after the close of the war, Congress resumed the subject at the second session. Early in February, 1867, Mr. Morrill, from the Committee of Ways and Means, reported a bill for the further reduction of taxes, which became a law on the 2d of March. The taxes removed were returning a yearly revenue of more than $36,000,000 to the National Treasury. The principal reductions were $19,500,000 from the income tax; $4,000,000 from clothing; $3,500,000 from woolens; $3,250,000 from leather; $1,000,000 from engines; $600,000 from sugar-refiners; $600,000 from tinware; $500,000 from castings; $500,000 from doors, sashes and blinds; with many others yielding less sums. All these formed a part of what were termed war taxes, and the steady purpose of Congress was to remove them as rapidly as the obligations of the Treasury would permit. As matter of fact they were removed long before such action was expected by the people, and before the special interests subjected to the burden had time to petition for relief or even to complain of hardship.
During the winter of 1866-67 there was a prolonged discussion in Congress over an Act finally passed March 2, 1867, authorizing the Secretary of the Treasury to exchange three per cent certificates of indebtedness for compound-interest notes, and allowing these certificates to be counted as a part of the reserve of National Banks. The first proposition was to allow interest at 3-65/100 per cent. The exchange of notes not bearing interest for those bearing compound interest was proposed by Mr. Stevens, and at first supported by a majority, but on reconsideration it was defeated. Objections was made to the bill that it was a scheme for giving to the banks interest on their reserves, which they could not otherwise receive when the compound-interest notes should be retired. Of these notes the banks held $90,000,000 and the limit proposed for the certificates was $100,000,000. Congress finally limited the amount of certificates to $50,000,000 at three per cent, and allowed them to stand for two-fifths of the reserve of any bank.
While this arrangement was an obvious advantage to the National banks, no such motive inspired Congress in passing the bill. Quite another object was aimed at in its enactment. The influence of contraction, which had gone into operation by the Act of the preceding summer, was already felt in the business of the country. The real significance of the Act just passed was that to a certain degree it checked and even neutralized the operation of the statute which ordered contraction. The compound-interest notes served the National banks as a part of their reserve, and as rapidly as they were cancelled, legal-tender notes were to be held in their stead. Their withdrawal from circulation for this purpose led therefore to a direct and forcible contraction of the actual currency of the country. By substituting the certificates of indebtedness as available for reserve this contraction was prevented, and by the concession of interest, even at three per cent, the banks were induced to surrender the securities which cost the Government a higher rate. The limit of these certificates was subsequently raised to $75,000,000,—a limit which in fact was often reached,—but as legal-tenders were needed the certificates were surrendered to the Treasury.
This is substantially the history of contraction, or of attempts at contraction made by the Thirty-ninth Congress. The successful effort to parry its effect, as already described, shows how unwelcome it had proved to the business community, and how Congress, without resorting at once to an absolute repeal of the act, sought an indirect mode of neutralizing its effect. Mr. McCulloch, in trying to enforce the policy of contraction, represented an apparently consistent theory in finance; but the great host of debtors who did not wish their obligation to be made more onerous, and the great host of creditors who did not desire that their debtors should be embarrassed and possibly rendered unable to liquidate, united on the practical side of the question and aroused public opinion against the course of the Treasury Department. An individual, by an effort of will, can bring himself to endure present inconvenience and even suffering, for a great good that lies beyond, but it was difficult for forty millions of people to adopt this resolve. Nor were the cases quite similar in motive and influence, for although it might be admitted that the entire nation would be benefitted by the ultimate result, the people knew that the process would bring embarrassment to vast numbers and would reduce not a few to bankruptcy and ruin. It was easy to see, therefore, that as each month the degree of contraction was made public, the people more and more attributed their financial troubles to its operation. Perhaps, in large degree, this was the result of imagination, and of that common desire in human nature to ascribe one's faults and misfortunes to some superior power. The effect nevertheless was serious and lasting. In the end, outside of banking and financial centres, there was a strong and persistent demand for the repeal of the Contraction Act.
The process of funding and paying the National debt, and of contracting the currency, went on with vigor and persistency during the summer and autumn of 1867. The Treasury statements for the year showed that up to November 1, 1867, the long obligations of the Government had been increased to $1,781,462,050; while the short obligations, other than currency, had been reduced to $441,655,120.63, and the currency in greenbacks, fractional notes and certificates of deposit for gold, to $402,385,677.39. The Treasury held $133,998,398.02; so that the National debt, less this cash, stood at $2,491,504,450. It thus exhibited an average reduction of the debt from its maximum, August 31, 1865, to November 1, 1867, of more than $10,000,000 per month.
Gold was lower than it had been, but great disappointment was felt because the premium, which had ranged in January, 1867, at 32-1/8 @ 37-7/8, was in November 37-1/2 @ 48-5/8, and the latter figure was higher than the quotation at the beginning of the first session of the Thirty-ninth Congress. The charge was current, and was believed by many, that the premium had been advanced by speculators to compel Congress to enforce the policy of contraction. On the other hand, it was declared to be demonstrably true that the reduction of the volume of paper did not lower the premium on gold. It only depressed production and placed the markets of every kind under the control of reckless operators. Surely, it was argued, the contraction had been severe enough to satisfy the advocates of the most stringent Procrustean policy. The short obligations had been cut down nearly one-half since January, 1866. If account were taken of compound-interest notes the reduction in currency ought to be reckoned at $100,000,000, and even at twice that sum, since the cash held by the Treasury had been taken from the circulation of the country. |
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