CHAPTER XXI GOLD STANDARD ACT OF 1900 1897-1902 THE gold standard advocates, who hoped that McKinley's election would be accepted as a final declaration in favor of the gold standard and that legislation would be speedily enacted, under the influence of his administration, insuring such result, were doomed to disappointment. McKinley was a safe exponent but not a moulder of public sentiment. His characteristics in this respect earned him the criticism of always "keeping his ear to the ground." The leaders of the Republican party were still influenced by the habit of deference to silver advocates and silver interests and the very large vote cast for Bryan, under stress of a presidential campaign, was a tangible evidence of strength and distinct source of inspiration far outweighing any sense of discouragement involved in his defeat. McKinley's congressional record upon the question of the standard justified the silver advocates in expecting no drastic measures at his hands, and the record of other Republican leaders fortified the hope of sufficient Republican assistance to defeat such measures should they appear. The gold standard had distinctly triumphed, but the lines of battle were still drawn, astute generals were deploying for position on either side, and the struggle was to be finally determined in the presidential contest of 1900. McKinley was easily persuaded that one more effort to secure international agreement in favor of the enlarged use of silver as money should be made. The troubles of Great Britain in pre serving even approximate stability in ratio between the rupee and the pound, among other causes, had precipitated a general discussion of the subject in Europe and perhaps justified this attempt on the part of our government. Senator Wolcott (Colo.), ex-Vice-President Adlai Stevenson, and General Charles J. Paine were sent abroad as commissioners. They visited the different capitals of Europe, were pleasantly received, but elicited no responsive interest. The complete failure of the mission was so generally anticipated in advance that it produced no appreciable effect upon public sentiment at home. A deficit in revenue of $18,000,000 estimated for 1897 was not disturbing, because the cash balance, including the gold reserve, was nearly $213,000,000, resulting from the proceeds of the bond sales in 1894-1896. The fact that Cleveland's struggle to maintain the gold standard was largely caused and greatly intensified by insufficient revenues was fully understood and appreciated. In fact the most serious criticism upon Cleveland's administration is his failure to influence legislation which would presently produce revenue sufficient for his needs. McKinley convened Congress in extra session and an act increasing the tariff generally, including a reimposition of part of the duty on sugar, which had been abolished by the McKinley act of 1890, soon produced sufficient revenue. Lyman J. Gage, for more than a generation a successful banker in Chicago, had been appointed Secretary of the Treasury. He brought his long experience and study to the work of solving the currency problem and before the regular session of Congress opened had elaborated a complete plan well worthy of adoption which was submitted to that body in December, 1897. His purpose was, as he expressed it, to put the country squarely upon a gold basis. The business interests of the country were keenly alive to the necessity for action and under the leadership of H. H. Hanna delegates from all sections assembled in convention at Indian |