Democrats, five representatives, two of whom were Republicans and three Democrats, and four members of the Supreme Court, two of whom were Republicans and two Democrats. The four justices were to select a fifth member of the Court as the fifteenth member of the commission.

When the measure was agreed upon, it was expected that Justice Davis, who was

lected, but just before the bill was passed Davis was elected to the United States Senate by the legislature of Illinois and resigned from the Court. Justice Bradley, a Republican, was finally put on the commission, which was thus composed of eight Republicans and seven Democrats, and in every important case that came before them the vote stood eight to seven. All the votes in dispute were given to Hayes, and

RUTHERFORD B. HAYES.

he was declared to have been elected president of the United States. This result, however, was not reached until March 2, 1877, two days before the day set for the inauguration of the new president.

The country had been through a serious political crisis, and narrowly escaped another civil war. The Democrats, however, offered no resistance, and it is now generally known that assurances were given to the Democratic leaders

South

through some of Hayes's friends that in case they would acquiesce in the decision of the commission Hayes would immediately withdraw the troops from the South. Restoration As this was an object which the Democrats had of Home long tried to bring about, they were satisfied Rule at the with the compromise. One of the most unfortunate features of Hayes's conduct was the fact that he rewarded Wells, the chairman of the Louisiana Returning Board, and his friends by appointing them to good positions under the Federal government. The Republican governors of Louisiana and South Carolina who had certified the Hayes returns were unable to maintain themselves, without Federal aid and withdrew with the troops, leaving the field to their Democratic opponents, who were promptly recognized by Hayes.

TOPICAL REFERENCES

1. Lincoln's Plan of Reconstruction: Proclamation of December 8, 1863, Messages and Papers of the Presidents, Vol. VI, pp. 213– 215; Wilson, Division and Reunion, pp. 254–257; Rhodes, History of the United States, Vol. IV, pp. 484-487, Vol. V, pp. 46–57, 132– 137; J. T. Morse, Abraham Lincoln, Vol. II, Chap. VIII; J. W. Burgess, Reconstruction and the Constitution, Chap. II; W. A. Dunning, Essays on Civil War and Reconstruction, Chap. II.

2. Character and Policy of Andrew Johnson: Schouler, History of the United States, Vol. VII, pp. 1–42; Rhodes, Vol. V, pp. 516– 565; Dunning, Reconstruction, Political and Economic, Chap. III; Burgess, Chap. III.

3. Congressional Plan of Reconstruction: Schouler, Vol. VII, pp. 43-92; Rhodes, Vol. V, pp. 565-625, Vol. VI, Chap. XXXI; Dunning, Reconstruction, Chaps. IV-VI; Burgess, Chaps. IV-VII.

4. The Impeachment of President Johnson: Schouler, Vol. VII, pp. 99-123; Rhodes, Vol. VI, Chap. XXXIII; Dunning, Essays, Chap. V; Burgess, Chap. IX.

5. The Nomination and Election of Grant: Dunning, Reconstruction, Chap. VIII; Stanwood, History of the Presidency, Chap. XXIII; Schouler, Vol. VII, pp. 123–128; Rhodes, Vol. VI, Chap. XXXIV.

6. The South under Negro Rule: Dunning, Reconstruction, Chaps. VII, XI, XIII, XIV; Burgess, Chap. XII; Schouler, Vol. VII, pp. 168-176; Rhodes, Vol. VI, Chap. XXXVII; W. L. Fleming, Reconstruction in Alabama; J. W. Garner, Reconstruction in Mississippi; H. A. Herbert, Why the Solid South?

7. Grant as President: Schouler, Vol. VII, Chaps. II, III; Rhodes, Vol. VI, Chap. XXXIX; Dunning, Reconstruction, Chap. XVIII; M. Storey, Charles Sumner, Chaps. XXII-XXV.

8. The Disputed Election of 1876: Dunning, Reconstruction, Chaps. XIX-XXI; Rhodes, Vol. VII, Chaps. XLIII, XLIV; Schouler, Vol. VII, pp. 301–355; Stanwood, Chap. XXV.

PART VI

THE NEW NATION

CHAPTER XXVI

ECONOMIC CHANGES, 1877-1897

THE period from 1877 to 1897 was one of economic change and political readjustment. It witnessed the rapid expansion of business, the settlement of the West through The period the building of railroads and immigration, the 1877-1897 organization of trusts, the formation of labor unions and the use of boycotts and strikes, the rise and fall of the Populist party, and the failure of both State legislatures and Congress to regulate the new forms of industrial organization. The period closed with an alliance between business and politics, in which business controlled, and the Republican party, which came into possession of all branches of the government in 1897, publicly proclaimed itself the agent of business prosperity.

The Centennial of the Declaration of Independence was celebrated at the beginning of this period by an exhibition which was the first revelation of the country's vast resources. The great Columbian Exposition held in Chicago in 1893 registered the wonderful industrial progress that had been made in less than two decades.

The Democratic party, which had lost control of the Federal government in 1860 through a factional split, recovered ground rapidly after the Civil, War Frequent and in the elections of 1874 regained control of political the House of Representatives. In fact, in changes eight of the eleven Congresses convened between 1875 and

1897 the House had a Democratic majority, though in all but two of these Congresses the Senate was Republican. In four of the six presidential elections held during these years the party in power was defeated; it was a period of political change and uncertainty.

During the whole of Hayes's administration the House was Democratic and during the second half the Senate also was Democratic, so that even had he possessed the powers of leadership which he lacked he could not have put through any party legislation. His administration was concerned with questions relating to the resumption of specie payments, the refunding of the national debt, and the status of paper money and of silver in our currency.

By the Refunding Acts of 1870 and 1871 the treasurer was authorized to buy up bonds bearing five, six, and seven per cent interest and to issue new bonds at four Resumption of specie and four and one half per cent. In 1869 an act payments of Congress pledged the good faith of the United States to pay in coin "all obligations not otherwise redeemable" and to redeem legal tender notes in specie "as soon as practicable." Finally, in 1875 Congress passed the Resumption Act, which directed the secretary of the treasury to begin the redemption of greenbacks in gold on the first of January, 1879.

The demand for an in

flated

currency

The agitation for the retention of the greenbacks as a permanent part of our currency had begun about 1868 and had made great headway in the West. The Independent or Greenback party nominated candidates for the presidency in 1876, 1880, and 1884, but the advocates of an inflated currency finally united forces with those who favored the free coinage of silver. The ratio of 16 to 1 for the coinage of silver and gold had been fixed by law in 1834, but as silver was undervalued little or none was brought to the mint. As the silver dollar had been practically out of circulation for a generation