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CHAPTER III. THE TIDE OF MATERIALISM

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The Civil War, which shocked the country into a new national consciousness and rearranged the elements of its economic life, also brought about a new era in political activity and management. The United States after Appomattox was a very different country from the United States before Sumter was fired upon. The war was a continental upheaval, like the Appalachian uplift in our geological history, producing sharp and profound readjustments.

Despite the fact that in 1864 Lincoln had been elected on a Union ticket supported by War Democrats, the Republicans claimed the triumphs of the war as their own. They emerged from the struggle with the enormous prestige of a party triumphant and with "Saviors of the Union" inscribed on their banners.

The death of their wise and great leader opened the door to a violent partizan orgy. President Andrew Johnson could not check the fury of the radical reconstructionists; and a new political era began in a riot of dogmatic and insolent dictatorship, which was intensified by the mob of carpetbaggers, scalawags, and freedmen in the South, and not abated by the lawless promptings of the Ku-Klux to regain patrician leadership in the home of secession nor by the baneful resentment of the North. The soldier was made a political asset. For a generation the "bloody shirt" was waved before the eyes of the Northern voter; and the evils, both grotesque and gruesome, of an unnatural reconstruction are not yet forgotten in the South.

A second opportunity of the politician was found in the rapid economic expansion that followed the war. The feeling of security in the North caused by the success of the Union arms buoyed an unbounded optimism which made it easy to enlist capital in new enterprises, and the protective tariff and liberal banking law stimulated industry. Exports of raw material and food products stimulated mining, grazing, and farming. European capital sought investments in American railroads, mines, and industrial under-takings. In the decade following the war the output of pig iron doubled, that of coal multiplied by five, and that of steel by one hundred. Superior iron and copper, Pennsylvania coal and oil, Nevada and California gold and silver, all yielded their enormous values to this new call of enterprise. Inventions and manufactures of all kinds flourished. During 1850-60 manufacturing establishments had increased by fourteen per cent. During 1860-70 they increased seventy-nine per cent.

The Homestead Act of May 20, 1862, opened vast areas of public lands to a new immigration. The flow of population was westward, and the West called for communication with the East. The Union Pacific and Central Pacific railways, the pioneer transcontinental lines, fostered on generous grants of land, were the tokens of the new transportation movement. Railroads were pushing forward everywhere with unheard-of rapidity. Short lines were being merged into far-reaching systems. In the early seventies the Pennsylvania system was organized and the Vanderbilts acquired control of lines as far west as Chicago. Soon the Baltimore and Ohio system extended its empire of trade to the Mississippi. Half a dozen ambitious trans-Mississippi systems, connecting with four new transcontinental projects, were put into operation.

Prosperity is always the opportunity of the politician. What is of greatest significance to the student of politics is that prosperity at this time was organized on a new basis. Before the war business had been conducted largely by individuals or partnerships. The unit was small; the amount of capital needed was limited. But now the unit was expanding so rapidly, the need for capital was so lavish, the empire of trade so extensive, that a new mechanism of ownership was necessary. This device, of course, was the corporation. It had, indeed, existed as a trading unit for many years. But the corporation before 1860 was comparatively small and was generally based upon charters granted by special act of the legislature.

No other event has had so practical a bearing on our politics and our economic and social life as the advent of the corporate device for owning and manipulating private business. For it links the omnipotence of the State to the limitations of private ownership; it thrusts the interests of private business into every legislature that grants charters or passes regulating acts; it diminishes, on the other hand, that stimulus to honesty and correct dealing which a private individual discerns to be his greatest asset in trade, for it replaces individual responsibility with group responsibility and scatters ownership among so large a number of persons that sinister manipulation is possible.

But if the private corporation, through its interest in broad charter privileges and liberal corporation laws and its devotion to the tariff and to conservative financial policies, found it convenient to do business with the politician and his organization, the quasi-public corporations, especially the steam railroads and street railways, found it almost essential to their existence. They received not only their franchises but frequently large bonuses from the public treasury. The Pacific roads alone were endowed with an empire of 145,000,000 acres of public land. States, counties, and cities freely loaned their credit and gave ample charters to new railway lines which were to stimulate prosperity.

City councils, legislatures, mayors, governors, Congress, and presidents were drawn into the maelstrom of commercialism. It is not surprising that side by side with the new business organization there grew up a new political organization, and that the new business magnate was accompanied by a new political magnate. The party machine and the party boss were the natural product of the time, which was a time of gain and greed. It was a sordid reaction, indeed, from the high principles that sought victory on the field of battle and that found their noblest embodiment in the character of Abraham Lincoln.

The dominant and domineering party chose the leading soldier of the North as its candidate for President. General Grant, elected as a popular idol because of his military genius, possessed neither the experience nor the skill to countermove the machinations of designing politicians and their business allies. On the other hand, he soon displayed an admiration for business success that placed him at once in accord with the spirit of the hour. He exalted men who could make money rather than men who could command ideas. He chose Alexander T. Stewart, the New York merchant prince, one of the three richest men of his day, for Secretary of the Treasury. The law, however, forbade the appointment to this office of any one who should "directly or indirectly be concerned or interested in carrying on the business of trade or commerce," and Stewart was disqualified. Adolph E. Borie of Philadelphia, whose qualifications were the possession of great wealth and the friendship of the President, was named Secretary of the Navy. Another personal friend, John A. Rawlins, was named Secretary of War. A third friend, Elihu B. Washburne of Illinois, was made Secretary of State. Washburne soon resigned, and Hamilton Fish of New York was appointed in his place. Fish, together with General Jacob D. Cox of Ohio, Secretary of the Interior, and Judge E. Rockwood Hoar of Massachusetts, Attorney-General, formed a strong triumvirate of ability and character in the Cabinet. But, while Grant displayed pleasure in the companionship of these eminent men, they never possessed his complete confidence. When the machinations for place and favor began, Hoar and Cox were in the way. Hoar had offended the Senate in his recommendations for federal circuit judges (the circuit court was then newly established), and when the President named him for Justice of the Supreme Court, Hoar was rejected. Senator Cameron, one of the chief spoils politicians of the time, told Hoar frankly why: "What could you expect for a man who had snubbed seventy Senators!" A few months later (June, 1870), the President bluntly asked for Hoar's resignation, a sacrifice to the gods of the Senate, to purchase their favor for the Santo Domingo treaty.

Cox resigned in the autumn. As Secretary of the Interior he had charge of the Patent Office, Census Bureau, and Indian Service, all of them requiring many appointments. He had attempted to introduce a sort of civil service examination for applicants and had vehemently protested against political assessments levied on clerks in his department. He especially offended Senators Cameron and Chandler, party chieftains who had the ear of the President. General Cox stated the matter plainly: "My views of the necessity of reform in the civil service had brought me more or less into collision with the plans of our active political managers and my sense of duty has obliged me to oppose some of their methods of action." These instances reveal how the party chieftains insisted inexorably upon their demands. To them the public service was principally a means to satisfy party ends, and the chief duty of the President and his Cabinet was to satisfy the claims of party necessity. General Cox said that distributing offices occupied "the larger part of the time of the President and all his Cabinet." General Garfield wrote (1877): "One-third of the working hours of Senators and Representatives is hardly sufficient to meet the demands made upon them in reference to appointments to office."

By the side of the partizan motives stalked the desire for gain. There were those to whom parties meant but the opportunity for sudden wealth. The President's admiration for commercial success and his inability to read the motives of sycophants multiplied their opportunities, and in the eight years of his administration there was consummated the baneful union of business and politics.

During the second Grant campaign (1872), when Horace Greeley was making his astounding run for President, the New York Sun hinted at gross and wholesale briberies of Congressmen by Oakes Ames and his associates who had built the Union Pacific Railroad, an enterprise which the United States had generously aided with loans and gifts.

Three committees of Congress, two in the House and one in the Senate (the Poland Committee, the Wilson Committee, and the Senate Committee), subsequently investigated the charges. Their investigations disclosed the fact that Ames, then a member of the House of Representatives, the principal stockholder in the Union Pacific, and the soul of the enterprise, had organized, under an existing Pennsylvania charter, a construction company called the Credit Mobilier, whose shares were issued to Ames and his associates. To the Credit Mobilier were issued the bonds and stock of the Union Pacific, which had been paid for "at not more than thirty cents on the dollar in road-making." * As the United States, in addition to princely gifts of land, had in effect guaranteed the cost of construction by authorizing the issue of Government bonds, dollar for dollar and side by side with the bonds of the road, the motive of the magnificent shuffle, which gave the road into the hands of a construction company, was clear. Now it was alleged that stock of the Credit Mobilier, paying dividends of three hundred and forty per cent, had been distributed by Ames among many of his fellow-Congressmen, in order to forestall a threatened investigation. It was disclosed that some of the members had refused point blank to have anything to do with the stock; others had refused after deliberation; others had purchased some of it outright; others, alas!, had "purchased" it, to be paid for out of its own dividends.

The Boss and the Machine: A Chronicle of the Politicians and Party Organization

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