Chapter D: Magone to Tilden (3)

"The malcontents are restless, vituperative, mischievous, and cowardly. They abound in threats and slurs and insinuations, and would do much harm if they only dared and knew how. But they are bewildered, and so simply stand under cover, make faces, and tell what they intend to do at the next State convention; among other things, they are then and there to annihilate the _Argus_. Our organization here, with Abraham Lansing for president, is very strong--stronger than ever before--and we shall send an influential and a united delegation to the convention. The soreheads begin to count much upon the ripple of disagreement that seems to exist among our friends in N. York. The Governor must smooth the troubled waters. He knows how.

"Return to Albany as soon as you can. Diluted as they are, can't the principles of the removal bill be applied to those Job's comforters with some effect?

"Respectfully and truly yours,
"DANIEL MANNING."

TILDEN TO FRANCIS S. THAYER, AUDITOR OF CANAL BOARD

"_Personal._

"NEW YORK, _June 25th, 1875_.

"My dear Sir,--You are quite correct in assuming that no action of mine on any bill or item has been inspired by anything but kindly disposition towards you.

"1. The canal extraordinary repair bill. When I found that I must veto this I at once communicated with you, and expressed the opinion that it would not prejudice your position as to the $15,000. That is my opinion now. I do not see any reason to doubt that you can pay that sum out of ordinary repairs. Tho' as an original job it may have been extraordinary work, when it came to be left in a condition to interfere with the current use of the canal, the removing of the obstruction, and putting in order the bank of the canal, is ordinary repairs.

"You may get the money at once on this theory. You could not get it under the extraordinary repair bill.

"2. The Hudson River improvement bill. The Comptroller informed me that there would be no money to pay for this object or the soldiers of 1812. The veto certainly had no reference to the commissioners.

"3. The supply bill was finally disposed of on information that had gradually been collected in the last two days of the period allowed by the Constitution, and while I was disabled by boils, so that I could not sit up. I should have communicated with you about the item of $750 if there had been time. I supposed I had sufficient and correct information from a gentleman to whom I had referred a portion of the supply bill for the investigation of facts.

"His report to me was that this item was in conflict--by inadvertence, I presumed--with two clauses of the amendment to the Constitution.

"Certainly I had no idea of unkindness or disrespect towards you. I shall be happy to look into the case, and if there is power to make this provision, to favor it.

"I have on several occasions manifested favorable sentiments towards you and your brother. I mentioned him favorably in the special canal message, and you on some recent occasions.

"I gave up my judgment as to the $150,000 for the aqueducts and 16 locks to your joint opinion and wishes.

"I desire to treat you with consideration, and to co-operate with you for the public good.

"Of course I have defined views of duty in respect to the policy to be pursued as to the canals, in which I should be glad to have your concurrence as far as is consistent with your judgment.

"I have dictated this hasty answer to your note in order to avoid delay.

"_Hon. Francis S. Thayer._"

FRANKLIN B. DEXTER TO MR. TILDEN

(MR. TILDEN RECEIVES THE DEGREE OF LL.D. FROM HIS ALMA MATER)

"YALE COLLEGE, NEW HAVEN, CONN., _July 5,
1875_.

"SIR,--I have the honor to inform you in an official way that the president and fellows of this college, at the recent public commencement, conferred upon you the honorary degree of Doctor of Laws, and in connection with that act enrolled you with the academical graduates of the college in the class of 1837.

"In thus recognizing the eminent public services which have so abundantly deserved the honorable regard of all public-spirited men, the corporation are especially proud to recall the fact that the foundations of your educational training were in part laid here, and to claim you, in virtue of this former connection, as an alumnus of Yale.

"Very respectfully,
"Your obedient servant,
"FRANKLIN B. DEXTER,
"_Secretary_.

"_His Excellency Gov. Tilden._"

CHARLES O'CONOR TO S. J. TILDEN

"CITY OF NEW YORK, STATION M, _Aug. 12th, 1875_.

"DEAR SIR,--So the anti-peculation campaign is fairly opened. It can eventuate on one way only. No such controversy ever ended in favor of the swindlers.

"But you want some documents. A big one is being prepared by a sub-editor here. He asks me for some facts. More than I can give him. Will you make some of your troops get for me:

"1. Copy of the minutes of the proceedings of a little extemporaneous bar meeting in Albany, held during the Tweed hab. corp. argt. G. T. ---- in the chair. D. D. Field moved. I never saw them. I think they must be in the _Argus_. Let us have _name and date of the paper_. It relates to a new form of obsequious reverence for appeal judges.

"2. The letter of Allen J., just previous to your nomination, offering to withdraw, if every one else would, in favor of his cousin Church. _Name and date of paper._

"I want you to give me the pedigree or connecting link by which Allen's cousinship to Church appears. Mistakes will occur unless men are careful. If you don't know the connecting link, how can it be relied upon? Don't you _know_ the principal fact?

"In looking into the history of the men, I am most at a loss to account for Grover's fall. I have a theory, but it is not as clear and satisfactory as the _known facts_ in respect to all others.

"Your speeches make the welkin ring. Why did you not touch them up at Rochester? Is there a strong peculation clique there? 'Begad, I begin soospec,' as the Frenchman said when he caught a man in bed with his wife.

"I wish very much I could have a little chat with you, but I suppose it is impossible.

"I want a short, succinct statement of the canal frauds detected by the recent committee. I don't know how to draw it myself. I mean what I say, a '_short and succinct_' thing.

"The anti-peculation document in contemplation will go hopping along on one leg if there be not a better short presentment of the canal detection than any one here knows how to write.

"Y'rs truly,
"CH. O'CONOR."

"P. S.--Answer as quickly as you can."

* * * * *

On the 9th of August, 1875, E. Delafield Smith was removed from the office of counsel to the corporation on charges formulated by Charles O'Conor, the sufficiency of which was approved by Governor Tilden in a letter which follows. On the same day the late William C. Whitney was appointed to the office vacated by Mr. Smith. Mr. Whitney, at the time of his appointment, was but thirty-six years of age.

* * * * *

"STATE OF NEW YORK, EXECUTIVE CHAMBER,
"ALBANY, _August 6, 1875_.

"TO THE HON. WM. H. WICKHAM,
_Mayor of the City of New York_.

"SIR,--At the time the proceedings for the removal of E. Delafield Smith, counsel to the corporation of the city of New York, matured in the submission to me of all the papers which either party deemed necessary to a full hearing of the case, the bill under which the suits growing out of municipal frauds were transferred to the care of the Attorney-General was well advanced towards its passage, and soon after it became a law.

"So far as any urgency resulted from the connection of this case with those suits, that element disappeared; and in no other respect were the interests of good government in immediate jeopardy. In the mean time the absorbing demands of measures of canal reform, and the pressure of legislative business superseded all less urgent matters; and in accordance with the usual practice of the executive office, this case, with similar ones from other parts of the State, and with the mass of kindred business, was deferred until after the close of the legislative session, and after the action on the bills and appropriations left at the adjournment, I have now examined the voluminous papers submitted, and have carefully considered the facts and evidence which they present, with the aid of such other light as was within my power.

"I am of the opinion that acts are established which amount to causes of the nature contemplated by law, and which would at least be sufficient to induce a private client to change his counsel. It seems to me quite clear that a rule at least as stringent as would govern a private client ought to be applied for the protection of a great community besieged by many millions of unjust and fraudulent claims, which are prosecuted with the energy of private interests, and which are always able to obtain great advantages over the public in a contest of professional talent, skill, zeal, activity, and persistence. I have, therefore, executed a certificate of approval, which is herewith transmitted. I have the honor to be your obedient servant,

"SAMUEL J. TILDEN."

CHARLES O'CONOR TO TILDEN

"FORT WASHINGTON, _Sept. 30, 1875_.

"DEAR SIR,--The thing I apprehended, when suggesting doubts as to the expediency of removing Smith, begins to develop itself.

"All outside counsel, _i. e._, Barlow, Carter, and the like, are henceforth to be excluded from any city defence against jobbery. The new corp. counsel and his clerks and employés inside of the office are to conduct all the city's business.

"The earliest fruit of this will doubtless be the recovery of $100,000,000 against the city in the water-meter case. This was one of Tweed's last contracts. Plenty more of like sort will follow.

"Browne's[67] article cannot be got into any of the city papers. Many conjectures as to the cause might be indulged in. But one is that, it being very long and requiring an extra for its publication, the printers think the reformers ought to be paid for.

"I know no one who is able and willing to contribute to the cost, and I am not inclined to incur additional expenditures whilst standing alone in that department.

"Yours truly,
"CH. O'CONOR."

"_Gov. Tilden._"

HORATIO SEYMOUR TO GOVERNOR TILDEN

"UTICA, _October 19, 1875_.

"MY DEAR SIR,--I am too ill and too old to do much at this election.[68] I have been kept in my house for some days by sickness. I shall be glad to help all I can, as I do not like the looks of the canvass. I fear the loss of some part, if not of the whole, of our ticket or of a majority so small that it will be counted a defeat. My fears may spring from the distrust which old men have of the future. Do not feel too sure. I know you are very confident, and so are the Republicans.

"I am, truly yours, &c.,
"HORATIO SEYMOUR."

"_To Governor Tilden._

"I will let you know what I can do."

J. E. COOLEY TO TILDEN

"PALAZZO COOLEY, 2 VIA DEI PUCCI,
"FLORENCE, ITALY, _Oct. 20th, 1875_.

"HON. SAMUEL J. TILDEN.

"DEAR SIR,--Allow me to congratulate you on the success and popularity of your administration as Governor of the State of New York. It seems to have the true Bentonian and Silas Wright tone or ring in it. I like it, and wish you the most perfect and entire success in the noble and patriotic efforts you are making to ferret out and punish thieves, without regard to party, and bring back the administration of the public affairs in the State of New York to the splendid condition they were in when confided to the guidance and care of such men as Wright, Marcy, and others of their best and most influential days. May God give you health and strength to carry out your noble purposes to the utmost limit of your commendable aspirations.

"I rejoice to hear of the signal defeat of the Democratic party of Ohio on their shameful inflation platform; and I am prayerfully hopeful that a similar result may accrue to the silly, not to say dishonest, inflationists of Pennsylvania. However much it may be regretted that the foolish inflationists of the Democratic party should have had sufficient influence to insure its defeat this fall in those two States, it will have the good effect to tumble out of the Presidential path several aspirants and possible candidates for that high office.

"The Democrats in the United States have once more the political cards in their own hands, and they are mostly trumps. Two-thirds, I may venture to say, of the Republican party, are wearied, not to say disgusted, with Grant's administration and sigh for a change, which would have been affected at the last Presidential election but for the inconceivable folly of the Democratic party in nominating Greeley, who for forty years had exerted himself to the utmost of his ability to destroy the party and malign and blacken the character of the most pure-minded and patriotic members of it.

"'Free trade, reform, and speedy return to specie payments' should be the conspicuous rallying or watchwords of the Democratic party in the future; and it must follow, as the night the day, that, with that insignia inscribed upon its banners, and with candidates truly representing the sentiment or policy it indicates, the party will next year triumphantly sweep the country from one extremity to the other.

"Protective duties, Civil War, and excessive issues of paper money have done much to demoralize the character of our people and waft the country towards the brink of ruin! It is high time to bring these destructive measures to an end; and to the Democratic party, rightly directed, is reserved the noble and patriotic mission of effecting this incalculable benefit to the United States, which would bring back the party itself to the enjoyment of all of its pristine power and the warm affection of an overwhelming majority of the people.

"The war is happily at an end, and protective duties may be abolished by repealing the ruinous acts that authorize their unjust exactions. But a return to specie payments cannot be effected by simply passing resolutions or empty and vague enactments of Congress. Something more grave and important is required to insure this great and much-needed reform in the deplorable financial condition of the country.

"In an extremity, and as a _war measure_, the government, having undertaken to furnish a paper currency declared to be equal in value to gold; and having made that currency the basis of a system of banking, which has been generally adopted throughout the country, it cannot now withdraw itself from the full responsibility of that position without great detriment to the best interests of the country, and incurring lasting dishonor, until it shall have, as it is abundantly able to do, appreciated that currency and brought it up to par in gold. This being done, the government will have returned to specie payments; and greenbacks, being the basis of banking, the banks themselves will also have resumed specie payments, if in a solvent condition, with an augmented appreciation of the whole volume of the currency, including the greenbacks and the bills of the national banks equal to the difference between the current value of the depreciated currency and the price of gold in the American market, which I perceive by the last quotations is 16 per cent. This _agio_ or premium, calculated on the whole amount of paper currency now issued by the national banks and the government (equal, I suppose, to no less than $700,000,000), would amount to $112,000,000; and this large sum is simply what would, in that event, justly accrue to the possessors or holders of the depreciated currency of the government and the national banks.

"How, it may be asked, can this desirable result be _easily_ attained? Evidently in no other way than by the government taking such steps and adopting such measures as will surely bring into its possession an amount of gold sufficient to enable it to deal in its own currency for _all_ government transactions. How is this to be done? Simply by a six-per-cent. 'redemption loan,' having 30 years to run, and to an amount equal to the full volume of the greenback currency now afloat. I say _six per cent._ because I would make the absorption of the loan _speedy_ and _sure_, though it is not unlikely that a loan of the kind might be slowly negotiated at 5 or even 4-1/2 per cent. interest. But a government loan at 6 per cent., having thirty or even _twenty_ years to run, would be caught up with avidity by capitalists on both sides of the Atlantic at a large premium; and it would at once throw the balance of trade in favor of the United States, so that there would be no immediate demand for gold abroad. It would, also, break down at once the mischievous ring speculations in gold at home, and obviate the necessity of buying gold for the payment of customs; and as gold could be obtained at any time for greenbacks or the bills of specie-paying banks, the demand for it would become so small that gold, instead of commanding, as it does at present, a ruinously high premium, would most likely become a drug!

"Such a loan as I have indicated should be put upon the principal money markets of the United States and in Europe and bid for simultaneously, and _payable_ in _gold_.

"Should such a condition of monetary affairs be attained the government might withdraw the greenbacks from circulation, so fast as the volume of currency necessary to meet the requirements of commerce should be supplied by sound specie-paying banks, until the whole amount ($400,000,000) shall have been retired, without disturbing materially the general current of trade or adding a single dollar to the present indebtedness of the United States. The interest on the new loan would, of course, have to be provided for; but that would be more than compensated by the saving of gold premium, now annually required in payments for foreign importations, which, whatever may be the amount, is added to the price or cost of all foreign commodities consumed by the people of the United States. The loan, moreover, would doubtless be taken at a premium of 10 to 15 per cent.; if so, $40,000,000 to $60,000,000 would be realized by the government by the operation.

"The glory of this great and patriotic achievement may be made to redound to the honor of the Democratic party is aroused to a proper sense of justice, and stimulated to a faithful performance of its obvious duty to the country; and, above all, inspired with a firm determination to be true to its own self.

"I have the honor to remain, with great respect,

"Very truly, your friend,
"J. E. COOLEY."

DAVID A. WELLS TO TILDEN

"NORWICH, CONN., _Nov. 9th_, (_1875_).

"MY DEAR MR. TILDEN,--I return herewith answers to all your list of questions, so far as I am able. It is not easy to give definite answers to all, especially in relation to aggregate national wealth, income, and savings.

"I do not believe it judicious for you, in your message, to enter in any degree into the field of economic controversy. The masses won't comprehend, and the doctrinaires will fight you. Stick to the great principles, and do not commit yourself against contraction. I have thought a good deal over our conversation of last week, and I am more and more convinced there is no other practical way out of our financial difficulties. 'All roads lead to Rome,' and all roads to resumption involve contraction at some stage if they lead where they pretend to.

"Very Truly Yours,
"DAVID A. WELLS."

"QUESTIONS

"'1. What, at a given period, was the population of
England, France, United States?

"'2. What is the best estimate of their aggregate capital
at such period?

"'3. Their annual gross income or earnings?

"'4. Their annual income from foreign government?

"'5. Their annual outgo to pay interest on foreign
debts?

"'6. Their annual net savings or accumulation?

"'7. Their exports?

" imports?

"'8. Production of gold and silver in United States for
each of five years?

"'Exports and imports of gold and silver during same
period?

"ANSWERS TO QUESTIONS.

"NO. 1. POPULATION.

From 1872. France (exclusive of Alsace and Lorraine) 36,102,920
" " Great Britain 31,835,000
" 1870. United States (Census) 38,115,641
" 1872. " " (Estimated) 40,000,000

"NO. 2. AGGREGATE CAPITAL.

"_United States._--The valuation of the property of the U. S. by the census of 1870 was (in currency) $30,068,000,000. The returned assessed valuation for the same year was less than one-half, or $14,178,000,000. The census counted as property, both property and the evidence of debt secured on such property. I do not think the productive capital of the United States in excess of $25,000,000,000.

"_Great Britain._--Baxter, in 1867-8, estimated, from accepted data, the aggregate value of the real and personal property of the United Kingdom at 6,000,000,000 _pounds_, or 30,000,000,000 dollars. I should put it for 1872 as high as _seven_, possibly _eight_, thousand million pounds.

"_France._--I know of no estimate of the aggregate value of property in France. I find several recent French writers, who incidentally refer to it, as less than that of Great Britain.

"NO. 3 AND 5. ANNUAL GROSS AND NET INCOME ON SAVINGS.

"Baxter estimates, for 1867-8, the annual gross income of the United Kingdom as 814,000,000, or $4,070,000,000; and the _net_ at about 600,000,000, or $3,000,000,000. This last constitutes the fund out of which the nation feeds and clothes itself, pays taxes, and repairs and saves. I should estimate the gross income of Great Britain for 1872-4 at full 1,000,000,000, and the net at 800,000,000. There are no reliable data for estimating annual savings, constituting new capital. _Ten_ per cent., which is a high estimate, in my judgment, would give 80,000,000, or $400,000,000; and yet these figures are not consistent with the recent returns of the Board of Trade, respecting the income from British foreign investments.

"_France._--Victor Bonnet asserts that the data are certain that France before the war of 1870 saved annually as much as $400,000,000--2,000,000,000 francs; and thinks that the present saving is about $600,000,000. He quotes Sir Robert Peel, approvingly, to the effect that France, with equal revenues, saves more than Great Britain.

"_United States._--Greater natural resources here give a greater gross and net income, with equal labor. I am inclined to put our gross income between $6 and $7,000,000,000. I do not believe our annual saving, in prosperous years, in excess of _five_ per cent., or from $300 to $400,000,000.

"4. ANNUAL INCOME FROM FOREIGN INVESTMENTS.

"_Great Britain._--A late number of the London _Economist_ puts 80,000,000, or $400,000,000, as the minimum paid Great Britain by foreign countries for interest on capital invested abroad, and _for freights and commissions_. The last year, I should think, represented full _one-third_.

"_France._--The estimate of revenue derived by France from industrial enterprises in foreign countries and foreign loans, from 1873-4, is about 260,000,000 francs, $52,000,000.

"_United States._--Nothing.

"5. ANNUAL OUTGO TO PAY INTEREST ON FOREIGN DEBTS.

"_Great Britain._--Nothing.

"_France._--An inconsiderable amount, probably not in excess of 12 to 15 millions of dollars.

"_United States._--Not less than _one hundred millions_ of dollars. Probably more than less.

"7. EXPORTS AND IMPORTS.

_United States_ 1872-3 Exports $677,000,000, Currency.
1873-4 " 716,000,000, "
1872-3 Imports 649,000,000, Gold.
1873-4 " 693,000,000, "
_Great Britain_ 1872-3 Exports £311,000,000, $1,555,000,000
1873-4 " 297,000,000, or 1,985,000,000
1872-3 Imports 371,000,000 --------------
1873-4 " 370,000,000 --------------
_France_ 1872. Exports 3,679,000,000 francs, $735,000,000
" Imports 3,447,000,000 francs, $689,000,000

"8. BULLION PRODUCT OF THE UNITED STATES FOR EACH OF FIVE YEARS.

"The present product of gold and silver, or rather the product for 1873 and 1874, is estimated by the director of the Mint in his last report at $70,000,000 per annum. For the five years, from 1871 to 1876 inclusive, an average of $60,000,000 per annum would probably be about correct.

"9. EXPORTS OF GOLD AND BULLION FOR FOUR YEARS.

Exports 1870 $43,882,000
" 1871 83,400,000
" 1872 72,727,000
" 1873 73,417,000
Imports 1870 26,417,000
" 1871 21,268,000
" 1872 13,742,000
" 1873 21,478,000

FOOTNOTES:

[56] _Rochester Union and Advertiser_, of which Purcell was promoter.

[57] Mr. George W. Smith, my colleague as Executor of Mr. Tilden's Estate and at the date of the following letter his private Secretary, writes me:

"The horse General Dix refers to, and which he had in Virginia, was a gray horse, about sixteen hands high, and a remarkably easy-riding horse. Mr. Tilden, I think, bought the outfit off him--horse, saddle, and bridle--just before General Dix went to Paris, and paid him $300. Before the general's return from Paris, Mr. Tilden put the horse in part payment of another horse. The general never recovered him."

[58] An expert accountant employed by Mr. Tilden to report upon the bank accounts of persons implicated in the frauds of what is known to history as the Tweed ring.

[59] A lawyer who had been a member of the law firm of Brown, Hall & Vanderpool, and at the time of writing this letter was Mayor, and inculpated with Tweed and others in municipal frauds.

[60] A famous dealer in horses in the New York market from Kentucky, and who supplied Mr. Tilden with his best riding and coach horses.

[61] This no doubt refers to the nomination of Greeley for President.

[62] Mr. Tilden spent most of the summer of 1873 in Europe, his first visit to the Old World. He bore with him the above enumerated letters of introduction from Mr. Evarts.

[63] Mr. George W. Smith, Mr. Tilden's private secretary, informs me that, according to his recollection, Mr. Tilden did not cease to be chairman of the State committee until he was nominated for Governor in 1874.

[64] This address was found among Mr. Tilden's papers, and was written by him at the request of the Mayor.

[65] Son of Judge Campbell, once a surrogate of New York, and, like his father, a Democrat.

[66] Former Secretary of State.

[67] Presumably then managing editor of the _Evening Post_.

[68] Referring to the approaching election of State officers, at which the Governor's canal reform policy was to be submitted for the first time to the popular crucible.

[End of volume I.]

Transcriber's Notes:

Simple spelling, grammar, and typographical errors were
silently corrected.

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Anachronistic and non-standard spellings retained as printed.

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