have marked the places where the deadly blight of [ treason has blasted the councils of the brave in j their hour of might. The trusts and combinations i — the communism of pelf — whose machinations have prevented us from reaching the success we deserve, should not be forgotten nor forgiven."
The close of the year If^4 was market! by finan- cial depression, by a larger deficit t han had been expected, and by a decline in the revenue. Al- though the Sherman act hail been repealed, no progress had been made with the scheme presented by Secretary Carlisle for reducing the paper cur- rency and providing for an adequate reserve. The reserve was threatene<l twice, and the president was obligol to make use of the power givt-n under i the resumption acts, by issuing l(oO,000,(X)0 worth of five-per-cent ten-year bonds for the purchase of gold. In his message to the last session of the 58d congress he stated that he should employ his borrowing power " whenever and as often as it be- comes necessary to maintain a sulTlcient gold re- serve and in abundant time to save the credit of our country and make gixxl the &nancial declara- tions of our goveniment."
In February, IHit.^. the jfuld reserve had fallen to $4U00O,000, and Mr. Cleveland aske<l congress for perml-wion to issue three- [>er-cent bonds payable in gold. This being denied him, ho issued four-per- cent thirty-year bonds redeemable in e<iin, to the amount of $62,000,000. In Juru', 1H03, the supreme court decided by a majoritv of one that the income tax that had b(>en imposed by the Wilson bill was unconstitutional, and the treasary thus lost a source of revenue that it had been estimated would yield $30,000,000 yearly. In his message of December, 1805, the president recommended a general reform of the banking and currency laws, including the retirement and cancellation of the greenluu'ks and treasury coin notes by exchange for low-interest U. S. bonds ; but congress failed to act on this recommendation. Gold exports continuc<l, and in January preparations were made for a new loan. An invitation was issued asking applications for $50 thirtv-vcar f<)ur-|)cr-cent bonds to the amount of $100,000,(XW Ix'fore « Feb.. Kurtjpean bankers held back, a frw-coinnge bill havitig Ikhmi mean- while n'|Mirlwl fuvnmbly in the S4'nale, hut Ameri- cans suljscTiljcd freely, and the treitsury obtained $111,000,000 in thus way. This success was con- trasted by Mr. Cleveland's opponents with his policy in the loan of 1S95, which was maile by con- tract with a svndicale of bankers; but it was pointed out in favor of that policy that it was the only course possible in a sudden emergency, and that such an emergency did not exist in 18iM. On 2U .May the president vetooti a river ami har- bor bill that provided for the immetliate expenili- ture of $17,01)0.000, and authorizc<l contracts for $62,00(),()(X) mon?, but it was passe<l over his veto. In July, 1«04, serious lalxir tnmhles arose in Illi- nois and other states of the west, tieginning with a strike of the employees of the Pullman palace car company, and spreading over many of the railroads centring in Chicago. Travel was' interrupte<l. the mails delayed, and interstate commcrci? olisl riicted. So wide-spread Ixtcame the trouble, involving con- stant acts of violence and lawlessness, and so grave was the crisis, that military force was necessary, especially in Chicago, to preserve the peace, en- force the laws, and protect property. The presi- dent, with commendable firmness and promptness, fully met the emergency. Acting under authority vested in him by law, he orden^l a large force of IT. S. troojia to Chicago to remove obstructions to the mails and interstate commerce, and to enforce the laws of the United States and the process of the federal courts; and on 8 and i) July issued proclamations commanding the dispersion of all unlawful a.ssemblages within the disturbed states. The governor of Illinois objected to the presence of the troops without his sanction or request. In answer to his protest the president telegraphed: "Federal troops were sent to Chicago in strict ac- cordance with the constitution and laws of the l'nit<d States upon the demand of the post-offlce de{>artment that obstruction of the mails should be removed, and upon the representations of the judicial oflii-ers of the Unite«l States that process of the federal courts could not be executed through the ordinary means, and upon abundant proof that cons|)iracies existed against commerce between the states. To meet these conditions, which are clearly within the province of federal authority, the pres- ence of federal troops in the city of Chicago was deemed not only proper, but necessary, and there has been no intention of thereby interfering with the plain duty of the local authorities to preserve the i>eace of the city."
To a further protest and argument of the govern- or the president replied : " While I am still per- suaded that I have transcended neither my author- ity nor duty in the emergency that confnmts us, it seems to me tlmt in this hour of danger and public distress discussion may well ^ve way to active effort on the part of the authorities to restore obedience to the law and to protect life and property."
The decisive action of the president restored order, ended the strike, and received the commen- dation of both houses of congress and of the people generally. The president then appointed a com- mission to investigate the causes of the strike. It Ls interesting to note in this connection that by special message to congress of 22 April, IKSO, Presi- dent (.'leveland hiul strongly recommended legis- lation which shouW provide for the settlement by arbitration of controversies of this character. Early in ilay, 1806, Mr. Cleveland Lssued an order by which 30,000 additional posts in the civil seni-ice were placed on the list of those recjuiring a certificate from the civil -service commissioners, thus raising the number on this list to HO.OOO. When he first became president there were only i:),0OU an|M)intments out of 130,000 for which any test of tlie kind was rwjuired.
In .Mr. Cleveland's last annual message, after de- claring that the agreement between Ureat Britain and the United States reganling the Venezuela boundary question ha<l practically removed that question from the field of controversy, he added that " negotialions for a treaty of general arbitra- tion for all differences between Great Britain and the United States are far ailvanced and promise to reach a successful consummation at an early date." On 11 Jan.. 1897, a treaty l)etween Oreat Britain and the Unit«I States for the establishment by the two countries of such an international tribunal of genenil arbitration was signed by Secretary Olney and Sir Julian I'auiicefote nt Washington, and sent by President Cleveland to the senate. This treaty was hailed with great satisfaction bv all friends of arbitration. The preamble stilted that the articles of the tre»ity were agreed to and concluded because the two cfiuntries concerned are "desirous of con- solidating the n-lations of amity which so happily exist. Ix'tween them and of consecrating by treaty the principle of international arbitration." No reservation was made regarding the subject-matter of disputes to Iw arbitralisl. Matters involving pecuniary claims amounting to $500,000 or less were to be settled by three arbitrators, consisting
