Government and Administration of the United States by Westel W. Willoughby and William F. Willoughby

W >> Westel W. Willoughby and William F. Willoughby >> Government and Administration of the United States

Pages:
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11

[Footnote 2: R.T. Ely, _Taxation in Am. States and Cities_.]

Nearly all of our State and local governments, as well as the national
government, have contracted large public debts, the interest payments
upon which constitute one of the chief items in their lists of
expenditures. The present debt of the Federal Government is largely the
result of the enormous expenditures occasioned by the Civil War. In
1865, August 31, it reached its highest point $2,381,530,294, with an
annual interest charge of $150,977,697. Since then it has been steadily
reduced until in 1889 the total interest-bearing debt was but
$829,853,990, with an annual interest charge of $33,752,354. The
principal of the national debt is mainly in the form of interest-bearing
bonds held by the National banks and private individuals. These bonds
are of various denominations and are promises of the government to pay
the sums named on their face, at the expiration of a certain period. The
bonds at present unpaid, and as such constituting the major portion of
our national debt, are principally of two kinds; those bearing four and
one-half per cent, annual interest and falling due in 1891, and those
bearing four per cent, interest and falling due in 1907.

The debts of most of the States were contracted by ill-advised and
untimely systems of internal improvements. The total state indebtedness
June I, 1890, as shown by the Eleventh Census, was $238,396,590, a
decrease of slightly over $58,000,000 in ten years. The tendency now
seems to be for States to withdraw from the money market as borrowers,
and for the county and city governments to take their place.

The local debts are very large, and have shown a marked increase during
the last twenty years. They have been for the most part incurred in
improvements and construction of public works, which have in most
instances well repaid the debts incurred.

CHAPTER XVIII.

Money.[1]

No man by himself produces everything he wants to use, but devotes his
time to the production of some few things, and the surplus that he does
not use, he exchanges for other things made by other men. In rude stages
of society this is done by a direct exchange of one commodity for
another, _e.g._ so much wheat or corn for a gun or plow. This is a very
imperfect and cumbersome method, which cannot be employed in our present
complicated transactions of buying and selling. There thus early
developed the use of money, or the practice of referring the value of
all things to one standard, usually the precious metals: so that,
instead of trading 20 bushels of corn for a plow, where it would be
necessary to go to the great trouble of finding a man who had a plow,
and also wanted your corn, you sell it for so much money, and with this
money you buy a plow. Money is thus but a medium of exchange and a
standard of value.

In the United States, as in most nations, money has always been made by
the Government, and the Government alone, so that one certain fixed
system may prevail. For the sake of convenience, money is made of
various kinds and denominations, and United States money may
conveniently be regarded under the five following divisions: 1. _#Gold
Coin, Gold Bullion, and Gold Certificates.#_--There are six gold coins:
(1) the eagle, $10 piece; (2) the double eagle, $20 piece; (3) the half
eagle, $5; (4) the quarter eagle, $2.50; (5) the $3 piece, and (6) the
$1 piece. The three last are but little used. The gold bullion, or gold
in bars and blocks uncoined, is for all practical purposes as good as
the coin, and in foreign trade is much used, it being more convenient to
handle. Besides the gold coin and bullion there are in circulation gold
certificates. These are paper, the same in general appearance as the
ordinary bank-note, and certify that an equivalent amount of gold has
been deposited with the Treasurer of the United States, and that the
holder of the certificate has the right to obtain the gold for it at any
time. This does not increase the amount of money in circulation, as for
every one issued just so much coin is withdrawn and stowed away in the
Treasury. The certificates are used simply for convenience, and in order
to avoid the necessary wear of the coin if in constant use. These
certificates are of the denomination of $20.

2. #_Silver Dollars and Silver Certificates_#.--There is no silver
bullion circulating as money, for a silver dollar does not contain a
dollar's worth of silver, as the gold dollar does of gold, and the
silver bullion is thus of different value (less value), according to
weight, than the silver dollar. The silver certificates are similar to
the gold certificates, already described, and certify that an equivalent
amount of silver has been deposited in the Treasury.

3. _#Subsidiary and Minor Coins.#_--All coins of a lower denomination
than $1 belong to one or the other of these two classes. There are three
subsidiary coins, the fifty cent, the twenty-five cent, and the ten cent
pieces. The three cent piece is no longer coined. All other coins are
minor coins. The peculiarity of the subsidiary and minor coins is that
they are, as compared with the standard coins (gold and silver dollars),
of a greater value than the value of the metal they contain. The
subsidiary coins are legal-tender to the amount of $10, the minor to
the extent of twenty-five cents. By legal-tender is meant that the
government has ordered that it must be received in payment of all debts
and articles bought. Gold coin and the silver dollars and certificates
are legal-tender to any amount.

4. _#Treasury Notes.#_--Under this head are included that form of money
ordinarily known as "greenbacks," from the color of their backs. They
were originally issued during the civil war, and are promissory notes on
the part of the government, and as such constitute a portion of the debt
of the government. They are paper, which of itself is of no value, and
no coin is deposited in the Treasury which they represent, as in the
case of the gold and silver certificates. They thus cost the government
nothing, and, as they are made legal-tender, and paid out by the
government, they were just so much clear gain to it. At first they were
not redeemable, i.e., exchangeable for coin at the Treasury, but since
1879 they are, and are therefore just as valuable now as any other form
of money, though formerly worth much less than their face value. One
hundred million dollars in gold is kept on deposit in the Treasury for
their redemption.

5. _#Notes of National Banks.#_--This is the one form of money that is
not issued directly by the Federal government, but through the agency of
what is called our "National Banking System," which may be thus
described: A national bank can be organized by any number of men,
provided the capital stock of the bank is at least $100,000. One-third
of the capital must then be invested in government bonds and deposited
in the United States Treasury. The bank may then issue notes to the
extent of 90 per cent, of such deposit. Such notes are thus amply
secured by the deposits with the government. The government guarantees
their payment, and so they circulate as well as the certificates issued
directly by the government. Thus a great deal of the paper money in
circulation is issued by the national banks, which must, on demand, be
redeemed with coin, and, in case of failure of the banks, are paid by
the government, which reimburses itself from the deposits. A bank-note
differs from a Treasury note in two particulars. The Treasury note or
"greenback" is a promise of the government, and is legal-tender in
payment of all private debts; the bank-note is the promise of a private
company, and is not legal-tender. A bank-note is said to be paid when
the bank gives a greenback or coin for it. A greenback is said to be
paid or redeemed when the government gives gold for it.

The following figures, taken from the report of the Secretary of the
Treasury for 1889, give the amounts of the various sorts of money
described in the foregoing, which were then in the Treasury, in the
banks, and in the hands of the people:

Gold coin and gold bullion, $680,063,505
Silver coin and silver bullion, 343,947,093
U.S. Treasury notes, 346,681,000
National Bank-notes, 211,378,963
Subsidiary coins, 76,601,836

It will be noticed that gold and silver certificates are not included,
for, as explained, they merely represent an equal amount of coin or
bullion on deposit.

The total amount of money is thus approximately $1,660,000,000, which,
divided by the total population, gives about $27 per capita. It should
be borne in mind in connection with these figures that other devices,
such as checks, drafts, bills of exchange, and other forms of credit,
are used side by side with money in carrying on trade and serving the
same purposes.

By the Compromise Silver Bill of July 14, 1890, provision was made for a
new kind of paper money. By this act the Secretary of the Treasury was
directed to purchase, from time to time, silver bullion to the amount of
4,500,000 ounces each month, and to issue in payment for such purchases
Treasury notes; these notes so issued to be redeemable on demand in
coin, and to be a legal tender in payment of all debts, public and
private, except where otherwise expressly stipulated.

[Footnote 1: In the preparation of this article, much assistance has
been derived from an article by H.C. Adams contributed to the
_Chautauquan_.]

CHAPTER XIX.

Public Lands of the United States.

Prior to 1781 but six of the original thirteen States--New Hampshire,
Rhode Island, Maryland, Pennsylvania, New Jersey, and Delaware--had
exactly defined boundaries. The others claimed lands of various extents,
stretching to the Mississippi River, or even to the Pacific Ocean. The
title to all this land was then in the individual States, and the
National Government, as such, had no land of its own. This question of
the ownership of the western land was one of the subjects of controversy
and discontent between the States. It delayed the adoption of the
Articles of Confederation for some time. Those States with little or no
land regarded with jealousy their more fortunate neighbors, and would
not consent to a union until a settlement or understanding was reached.

The Articles of Confederation were adopted only after assurance was made
that all the public lands would be ceded to the Federal Government. This
was finally done by the States.

The Government formed under the Constitution succeeded to all this land,
and in addition, to further cessions made by the States, the last being
that of Georgia in 1802. The subsequent additions of territory were made
directly to the United States, and not to the States, and all land thus
gained was held as public land to be disposed of by Congress.

While the area of the United States is 3,603,884 square miles, the
public domain which has been acquired by cession, purchase, or conquest,
to be disposed of by the Government as it desires, has amounted to
2,708,388 square miles, or about two-thirds of the total area of the
country.

The absolute title to this land, as before stated, became vested in the
United States Government. The disposal of these lands has always been
under the sole power and control of Congress.

This land was all thinly populated by Indian tribes, who merely hunted
over it, leaving unimproved its natural fertility and vast mineral
resources. These tribes, being actual occupants, were recognized to have
a sort of half interest in the land. This half ownership was always
first extinguished by the United States by purchase for small sums, or
by the granting of certain privileges, etc., before it was opened up for
settlement and occupation by the white man. Land is still held, to a
considerable extent, in this way by the Indians. This right of the
Indians can be extinguished only by the United States, as they are not
allowed to sell or treat at all with individuals or States or foreign
nations.

Until 1812 the affairs of the public domain were managed by the
Secretary of the Treasury. In that year the office of Commissioner of
the General Land Office was created, which remained a bureau under the
Treasury Department until 1846. On the creation of the Interior
Department in that year, Indian affairs were transferred to it, and have
remained under the same management until the present time. This bureau
has complete charge of all matters relating to the management and
disposal of the public lands, subject to the direction of Congress.

Almost every conceivable method of disposing of this land has been
followed. The Government has, however, never assumed the position of
landlord and rented the land, except in one case of some mineral land,
and this experiment resulted disastrously. Before the land could be
disposed of, it was necessary that it should be surveyed by the
Government. To do this there was adopted as early as 1776, the so-called
rectangular system, which, with slight changes, has been continued
until the present time. By this system there are first surveyed a base
and a meridian line, crossing each other at right angles, running north
and south and east and west. From these fixed lines the land is surveyed
and marked off into rectangles of six miles square, each thus containing
thirty-six square miles. This is called a township. This is again
divided up into sections of one square mile each or 640 acres, and this
again into quarter sections of 160 acres each. In some cases these are
still further subdivided.

The regulation and disposition of the public lands has been one of the
chief duties imposed upon Congress.

The chief methods by which the public lands have been disposed of are as
follows:

1. _#Educational Grants.#_--Congress from the very first provided
liberally for the establishment of common schools through grants of
public lands for this purpose. As each township is surveyed one quarter
section of 640 acres is set apart for common schools. This has continued
from the beginning down to the present time. In addition, large grants
have been made specially for the endowment of universities. Within later
years land has been given to every State to found State military and
agricultural colleges. Up to the year 1888, there had thus been granted
for educational purposes 77,448,192 acres.

2. _#Land Bounties for Military and Naval Service.#_--There have been
granted by different acts bounties of public land, in the nature of
pensions, to the soldiers and sailors of the United States Army, on
their honorable discharge, for their service to the Government. The
amount of land thus granted (1880) has been 61,028,430 acres.

3. _#To the States for Internal Improvement.#_--There was granted to the
States during the years from 1828 to 1846, for the improvement of
rivers, building of canals, wagon roads, railroads, etc., 162,230,099
acres.

4. _#Sale of Public Land.#_--Under this head there are two classes of
public land--first, that which may be bought for the minimum rate of
$1.25; and, secondly, the alternate sections along the railroads (the
other alternate sections being granted to the railroads), the minimum
price of which is $2.50. There have been sold in all 192,584,116 acres,
realizing $233,000,000.

5. #_Under the Pre-emption Acts._#--These acts, passed at various times,
provide that where a man, a citizen of the United States, settles upon
and cultivates for a certain length of time, a tract of land not greater
than 160 acres, the United States will give him such tract.

6. #_Under the Homestead Acts._#--The homestead laws have created a
better and more certain manner for settlers to acquire land than under
the pre-emption acts. By these acts it is provided that any citizen who
will select either 160 acres of the $1.25 land, or 80 of the $2.50 land,
can then get a permit from the land office, settle on his land, and
acquire a title to it.

7. _#Under the Timber Culture Act.#_--This act gives to any one the
right to 160 acres of the $1.25 land if he will plant 10 acres in
timber, or 80 acres of the $2.50 land if he will plant 5 acres in
timber.

8. _#Certain Lands to States.#_--Quite a large quantity of the public
land has been given to the States on account of its quality, as swamp or
overflowed land, and for various reasons, to the extent of 158,417,514
acres.

9. _#Grants to Pacific and other Railroad Companies.#_--The nature of
these grants have already been spoken of in another chapter. From 1850
to 1872 a total of 150,504,994 acres was given for railroad
construction.

XX.

Reconstruction.

The conclusion of the civil war in 1865 did not relieve the United
States Government of its extraordinary difficulties. There was the whole
South, a conquered territory, occupying the anomalous position of a
district, still within the Union, yet possessing no legal state
governments. The Confederate government had now been destroyed by the
North, and the South was thus without a government. Four million slaves
had been liberated, who were uneducated, without money, and living among
people hostile to them. Congress had to provide for and protect these
freedmen in their rights. The work to be done by Congress, was then:--1.
To decide upon what terms and upon what conditions the seceded States
should be re-admitted into the Union, and to provide for them a
government until such re-admission. 2. To protect the negro.

The South, though in the Union, had at this time, of course, no
representation in Congress, and consequently, the Republicans were in
great majority. Unfortunately, Johnson, who succeeded to the Presidency
at the death of Lincoln, though a Republican, disagreed with his party,
and legislation upon this subject was only secured by passing all acts
over his veto by a two-thirds vote.

After much discussion, the first Reconstruction Bill, "to provide for
the more efficient government of the rebel States," was passed in 1867,
vetoed by the President, and passed over his veto. Its principal
provisions were--1. The insurrectionary States were to be put under
United States control, and for this purpose divided into five military
districts, over each of which the President was to appoint a commanding
officer. 2. The people of the various States might hold a delegate
convention, elected by the citizens who had not been deprived of the
right to vote for participation in the rebellion. The convention was to
prepare a new constitution, which constitution was to be then submitted
to the vote of the people, and when ratified by them and approved by
Congress, should go into force, and the State be entitled to
representation in Congress. Before approval by Congress the
constitutions adopted by the rebel States had to agree in all the
following particulars: (1) abolishing slavery; (2) declaring null and
void all debts created by States in aid of the rebellion; (3) renouncing
all right of secession; (4) declaring the ordinance of secession which
they had passed null and void; (5) giving the right to vote to all male
citizens, without regard to color; (6) prohibiting the passing of any
law to limit or abridge the rights of any class of citizens.

In 1868 the Fourteenth Amendment was adopted by a sufficient number of
States, and was declared a part of the Constitution.

In 1871 all the States were, for the first time since 1861, represented
in both houses of Congress. Reconstruction by Congress was then
completed.

CHAPTER XXI.

Party Machinery.

In all the States, counties, cities, and even in the smaller
subdivisions of wards, political parties are thoroughly organized, with
acknowledged leaders, and under systems of rules or party government.
This party government, or "machine," as it is called, has been created
by no law or constitution, but is one which has been gradually formed by
the voters themselves, and under which they have voluntarily placed
themselves, in order better to succeed in their elections, well
realizing that the best chance of success is by having all the voters of
their party united on certain principles embodied in a party platform,
and having candidates so nominated that the whole party will recognize
them as their choice.

The aims of party organization are: First, union, that is, having all
voters united as to candidates and platform; and second, recruiting or
the gaining of new adherents.

There are at present two opposing political parties, both striving for
the control of the Government. Both have very nearly the same system of
party government, but their organizations are totally distinct and
separate one from the other.

There are two distinct parts of party government. They are; first, sets
of committees, whose business it is to do all the work of managing
elections, such as raising and applying funds for election purposes,
organizing meetings, providing speakers, publishing and distributing
political tracts and other information, and stirring up enthusiasm by
parades and fireworks, etc. They have also the important duty of
calling together nominating conventions.

The second part of the "machine" embraces the nominating conventions,
which propose the names of the candidates whom their party are to
support for election. These assemblies are called together by the
committees periodically, for the purpose of specific nominations, and
cease to exist as soon as their work is done. Besides nominating
candidates, the conventions draw up the platform, which is a statement
of party principles, beliefs, and pledges. To provide for their
reassembling next time, they also elect a new committee, for the next
term; and also send delegates to the next higher convention. Thus are
found committees and a nominating convention, managing not only national
and state elections, but even arranging and managing elections in the
smaller electoral subdivisions.

There is a committee and a nominating convention for every city, for
every county, for every district, and for every State. There are, then,
throughout the whole United States, such committees, each controlling
its own local affairs, but yet all related to each other, thus forming
one vast organized system.

Beginning with the smallest and lowest, let us show their mutual
connections and workings. Starting, then, with the township convention,
or convention of a city ward, we find that all the voters of the party
are called together on a certain day by a committee (which was chosen at
the preceding meeting) for the purpose of nominating candidates for
local affairs, and naming delegates to represent them at the city or
county convention. The city or county convention, composed of these men,
is called together by the city or county committee. It first nominates
candidates for the city or county offices, and selects delegates to the
state convention, and also provides for the next meeting by the election
of a new committee for the ensuing year. In similar manner, just before
every state election, the state convention, composed of city and county
delegates, is called together by the state central committee. Here are
nominated men for state officers; a new committee is appointed to manage
state elections; and also, once every four years, the important duty of
selecting Presidential electors is performed. The Democrats also select,
in this state convention, their delegates to the National Presidential
Nominating Convention. The Republicans select but four delegates from
each State in state conventions, the remainder being appointed in
district conventions. Following the same method the National Central
Committee calls together a National Convention of all the delegates
which have been appointed by the State, for the purpose of (1)
nominating candidates for their party for President and Vice President;
(2) drawing up and accepting a party platform; (3) selecting a new
National Central Committee for the next four years, which committee is
to manage the election campaign and call the next National Convention.

CHAPTER XXII.

National Conventions and Presidential Campaigns.

_#History and Development of the National Convention.#_--In the
Presidential elections of 1789 and 1792 there was no necessity for
regular party nominations, as the whole people were practically
unanimous in favor of Washington. Likewise in 1796 it was so well
understood that Adams was the man desired by the Federalists, and
Jefferson by the Democrats, that formal nominations were not required.
But, commencing with 1800, political parties were more divided in their
choice, and some method was demanded by which it might be decided on
whom the party should unite. From 1800 to 1820 this demand was met by
nominations made by Congressmen, in caucuses, or private meetings, of
the members of each party. This method finally proved unsatisfactory to
the country, but from 1824-1835 no new and better method was invented,
and nominations were made rather irregularly, each State legislature
proposing the name of its favorite. This method of nomination naturally
failed to unite the voters of the party, in all the different States, on
one man, and had to be abandoned. After a failure to revive nomination
for President by Congressional caucuses, a new method was developed and
adopted, which was by National Nominating Conventions, such as we have
to-day. The introduction of this last plan may fairly be dated at 1840.
National Conventions were first held at Eastern cities, but are now held
further West, to accommodate the shifting center of population, Chicago
being the favorite city. The National Convention is composed of
delegates from all the States. Each State sends twice as many delegates
as it has representatives in the National Senate and House of
Representatives, thus making a total now of 802. In addition to these,
the Republicans allow two delegates from each of the Territories.

Pages:
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11