CHAPTER XVII

HIS SECOND ADMINISTRATION

In

THE storm of criticism and calumny through which President Grant passed during the election canvass of 1872 had no effect to change his general course or open his eyes to the true sentiment of the nation. stead of realizing that he was reëlected, not because his administration was approved, but because circumstances prevented an effective combination of the various elements of sincere opposition, he and his friends accepted the result as popular approbation of their past conduct and warrant for its continuance. Things went from bad to worse with a pell-mell rapidity that made good men shudder.

In the four years there were but two exhibitions of conspicuously courageous and honorable statesmanship. One was the passage of the Resumption Act of January 14, 1875,

which promised the resumption of specie payments on January 1, 1879, and gave the Secretary of the Treasury adequate power to make the performance of the promise possible. This was one result of the collapse in 1873 of the enormous speculation promoted by a fluctuating currency and fictitious valThe demand for a currency of stable value enabled the conservative statesmen in Congress to take this action. Grant's approval of this act and his veto in the previous year of the "inflation bill" must always be regarded as highly commendable public services.

ues.

The only immediate change in the cabinet was the appointment of William A. Richardson to succeed George S. Boutwell as Secretary of the Treasury. Mr. Richardson had some qualifications of experience for the place, but wanted the essential traits of firmness and high motive. In the next year after taking office he was forced to resign, on account of a report of the committee of ways and means condemning him for his part in making a contract, while acting

Secretary of the Treasury, with one Sanborn, for collecting for the Treasury, on shares, taxes which it was the business of regular officers of the government to collect. Immense power was given by the contract, and the resources of the Treasury Department were put at the service of a crew of irresponsible inquisitors before whom the business community trembled. They extorted immense sums in dishonorable ways which aroused popular resentment. The President saw no wrong, and accepted Secretary Richardson's resignation unwillingly, at once nominating him to be Chief Justice of the Court of Claims, a reward for malfeasance which amazed the country, although the administration supporters in the Senate confirmed it.

General Benjamin H. Bristow, of Kentucky, became Secretary of the Treasury, a man of superior ability, aggressive honesty, and moral firmness. He quickly uncovered a mass of various wrongdoing, the safeburglary frauds of the corrupt ring governing Washington, the seal-lock frauds, the

subsidy frauds, and, most formidable of all, the frauds of the powerful whiskey ring having headquarters in St. Louis. The administration of the Treasury Department, especially the Internal Revenue Bureau, was permeated with corruption. The worst feature of it all was that officers who desired to be upright found themselves powerless against the intrigues and the potent political influence of the rascals at the headquarters of executive authority. When the evidence of wrongdoing accumulated by the new Secretary of the Treasury was laid before the President he was dumfounded by its wickedness and extent, but showed himself resolute and vigorous in supporting his able and resourceful Secretary. The trap was sprung in May, 1875. Indictments were found against 150 private citizens and 86 government officers, among the latter the chief clerk in the Treasury Department, and the President's private secretary, General O. E. Babcock. All the principal defendants were convicted except Babcock, and he was dismissed by the President.

During all these proceedings, in spite of the President's professions, the Treasury Department was beset by subtle hostile influences and impediments. The politicians who had the President's ear made him believe that it was the ruin of himself and his household that the investigators sought. Only the enthusiastic popular approval of Secretary Bristow's brave course prevented yielding to the political backers of the corruption. When in the spring of 1876 Bristow initiated a similar campaign against the corruptions rife on the Pacific coast, the Secretary was overruled and the government prosecutors were recalled. Whereupon the Secretary resigned, and no less than seven high Treasury officials, who had been active in the crusade of reform, left the department at the same time. Mr. Bristow was succeeded by an honorable man, the President had to appoint a man known to be pure, Lot M. Morrill, of Maine; but he was infirm, and all aggressive reform work ceased.

In the War Department, Secretary Bel