Resource Center OLLibrary
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During the winter of
1872-3, an investigation into the
affairs of the Credit Mobilier -- a corporation formed for
the purpose of building the Pacific Railroad -- was ordered
by Congress. It was discovered that many of the securities
of the road had found their way into the hands of members of the
general government, upon whose legislation depended the value of
the stock. Two representatives were censured, and a senator barely
escaped expulsion.1
24. Early in the spring much trouble was
caused by the Modoc Indians, who refused to 
remain
upon their reservation in Oregon. Peace commissioners were
sent out to negotiate with them; but the Indians treacherously
made an attack upon the council while in session, and two of its
members, Gen. Canby and Rev. Dr. Thomas, were
killed. An active campaign was then begun against the Modocs, who
were finally compelled to surrender. Several leaders of the tribe
were executed at Fort Klamath, October 3, 1873, and the
tribe was removed to a reservation in the Indian Territory.
25. In the autumn of this year occurred a
financial panic, which in character was far more general
and extensive than those which had preceded it in 1837 and
1857.2
The effects of the war had tended to
establish fictitious values and inflated prices, and this
depression was looked upon as a perfectly natural reaction. It
was, of course, attended with much evil, brought ruin to various
industries, and was particularly severe upon the laboring people,
many of whom were thrown out of employment. This state of affairs
gave rise to a class of persons known as "tramps," people who
obtained their living by going from town to town begging and
stealing. They became so numerous, and committed so many acts of
violence, that many of the states were obliged to pass laws for
the general protection of society.
By some a further issue of
paper money was advocated as a measure of
relief,3 while 
others
asked for a return to specie payments. Congress, in 1875,
passed a bill naming January 1, 1879, as the date upon which
resumption should take place. Financial affairs adjusted
themselves accordingly, and on the date mentioned, specie payment
was resumed.
1 See p. 319, ¶ 17. 2 See p. 201, ¶ 1; -- p. 225, ¶ 3. 3 See p. 312, ¶ 62.
QUESTIONS. -- What was the Credit Mobilier? What was the result of the investigation of its affairs by Congress? 24. What is said of the Modoc Indians? How did they treat the peace commissioners? What was the result of the campaign against these Indians? 25. What was the character of the panic of 1873? What had been the effect of the war? State what is said about "tramps." What general measures of relief were urged, and, what did Congress do? What resulted?
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26. Political
disturbances in reference to state governments occurred during
this administration in Louisiana and South Carolina.
In the former state both political parties claimed the election of
its governor and legislature, and threatened to establish their
claims by force, so that President Grant felt compelled to
interfere, and sent thither bodies of United States troops.
They sustained the authority of the Republican state
officers. A similar condition of affairs existed in South
Carolina, and by similar interference the Republican
state government was upheld.
27. Colorado, having a population
of one hundred and twenty-five thousand, applied in 1875
for
admission to the Union. In March of that year Congress
granted to the people of the territory power to frame a
constitution. By proclamation of the president it
took its place in the Union during the summer of 1876. It
is known as the "Rocky Mountain" or "Centennial" state.
That part of Colorado lying east
of the Rocky Mountains and north of the Arkansas River was
originally a portion of the "Louisiana purchase."1 The
remainder was included in the Mexican cession2 of 1848.
Colorado made the thirty-eighth state.
28. 1876 marked the
completion of the first century of the republic,3 and
was known as the Centennial Year. The epoch was generally noticed
in all parts of the country.
The Fourth of July was especially
observed. At Philadelphia an International
Exhibition was held, opening upon the 10th of May, and closing
in November. It was visited by nearly ten millions of people. For
the purposes of the exhibition two hundred buildings were erected
in Fairmount Park, six of these alone covering a space of
sixty acres. The display of manufactured goods and general
products from the many states of the Union was exceedingly
extensive and attractive, while foreign countries, particularly
China, Japan, Russia, and France, by their varied contributions,
added much to the interest of the exhibition.
29. This year was also
marked by a further disturbance among the Indians.
The Sioux refused to settle upon the reservation assigned
them by treaty, and made various attacks
1 See p. 166, ¶ 3, and note 5. 2 See p. 219, ¶ 7. 3 See p. 119, ¶ 2.
QUESTIONS. -- 26. Give an account of the political disturbances in Louisiana and South Carolina. 27. When did Colorado apply for admission to the Union? How and when was she admitted? What is the state called? From what sources was Colorado originally obtained? What is her number in the order of admission? 28. For what was the year 1876 noted? How was it observed? What exhibition took place at Philadelphia? Give an account of it. 29. What is said of the trouble with the Sioux?
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upon friendly Indians. In June a force
of regular troops, under command of General Custer and
General Terry, was sent against them. On the twenty-fifth
General Custer came suddenly upon the enemy. A terrible
battle ensued. The soldiers were completely overwhelmed, and
nearly all were killed, General Custer himself being slain
while making a gallant hand-to-hand fight. Subsequently
reinforcements arrived; a pursuit and attack followed, and the
Sioux, being beaten, surrendered.
30. The presidential election of
1876 was one of exceeding interest on account of the close
character of the contest. Rutherford B. Hayes,1 of
Ohio, was elected president, and William A. Wheeler, of New York,
vice-president. The successful candidates were the nominees of the
Republican party.
The Democrats named for their
candidates Samuel J. Tilden, of New York, and Thomas A. Hendricks,
of Indiana. A third party, called the Greenback party, also
placed in the field the names of Peter Cooper, of New York, and
Samuel E. Cary, of Ohio. The election took place, but the
issue remained for some time unsettled in consequence of
disputes which arose 
concerning
the return of electoral votes from several of the states. The
matter was by Congress referred for settlement to a
committee, known as the Electoral Commission,
consisting of five senators, five representatives, and five judges
of the Supreme Court. This commission finally decided, by a vote
of eight to seven, that Tilden and Hendricks had received one
hundred and eighty-four electoral votes, and Hayes and Wheeler one
hundred and eighty-five. The latter were therefore declared
elected, and were duly inaugurated in the following
March.
31. Upon entering office, President
Hayes2 found political affairs in the South,
particularly in Louisiana and South Carolina, in an
extremely disturbed condition, growing out of the fact that rival
governments in each commonwealth were disputing as to the right to
the administration of local authority. His predecessor had
sustained the Republican governments3 of
1 Rutherford Birchard Hayes was born at Delaware, Ohio, October 4,1822. He was graduated at Kenyon College in 1842, and afterwards at the Harvard Law School. He then entered upon the practice of his profession at Fremont, Ohio. When the Civil War broke out, he entered the army, and by faithful service rose from the rank of major to that of brevet major-general. At the the close of the contest he returned to his native state and became prominent in political affairs. He was member of Congress for two terms, and three times elected governor of Ohio.
2 See Appendix, p. 23. 3 See p. 323, ¶ 26.
QUESTIONS. -- State the facts of the battle between General Custer and the Indians. What was the final result? 30. Name the candidates for president and vice-president in the campaign of 1879. What was the result of the issue? To whom was it referred? Who were declared elected? -- 31. How did President Hayes find affairs in the South at this time? What had been the action of Hayes's predecessor?
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these states by placing United States troops
within their borders. The president withdrew the troops, and the
Democrats, coming into power, took control of affairs in
both states.
The
subject of civil service reform received the cordial
support of President Hayes. The matter, however, did not
meet with general acceptance, owing, perhaps, to the fact that the
offices under the control of government had been used as rewards
for party services, and those having these places within their
gift were naturally unwilling to part with such patronage. The
president was apparently sincere in his efforts at reform, and
found some zealous supporters.
32. In the summer of 1877
there occurred an extensive and disastrous strike of railroad
operatives, which greatly interrupted travel and disturbed
business throughout the country, and
was marked by unusual violence and great loss and destruction of
property. The strike was caused by a reduction of wages, which the
workmen united to resist. They failed of their purpose, but quiet
and order were only restored by the aid of troops of the national
army.
The outbreak commenced about the middle
of July, at Martinsburg, W. Va., with the workmen on the Baltimore
and Ohio road. The strike soon spread to other railroads, and
extended as far west as the Mississippi river, and east and north
to Canada. At Pittsburg, Pa., a fearful riot occurred,
which the state troops attempted to quell, but without success.
Depots, machine-shops, cars, and large quantities of freight, were
burned by a mob which ruled the city for several days. Nearly one
hundred persons were killed. The loss of property was variously
estimated from five to six millions of dollars. Other riots, not
so destructive in character, took place at St. Louis, Chicago,
Louisville, Baltimore, Hornellsville, N. Y., and Reading and
Scranton, Pa. These
QUESTIONS. -- What course did the president pursue? What is said of civil-service reform? 32. What is stated about the strike of railroad operatives in the summer of 1877? Give an account of the outbreak and what resulted therefrom. How and when was quiet restored?
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were finally quelled in most part by the local militia. In some
instances regular troops were called in, and rendered prompt and
efficient service. It was not until towards the close of August
that peace and quiet were restored and travel and traffic fully
resumed by all the railroads.
33. During this summer the Nez Perce*
Indians, who had hitherto been friendly, caused some
disturbance. The affair was not of great magnitude, and was soon
quelled by the United States forces.
34. An extra session of Congress
was called in October by reason of failure at its previous
sitting to pass the customary appropriation bills.
The regular session began as usual in
December, and the chief interest centred (sic) upon what
was known as the Silver Bill. It was a measure for
re-establishing the free coinage of silver and making coined
silver dollars legal tender for all debts public and private.
Reasons for its introduction were found in the fact that by an act
of Congress, in 1873, silver had been demonetized; and
further, by the belief on the part of many that such a law would
be a relief to the general financial depression then
prevailing.1 This view was, however, opposed by others,
who were of the opinion that exactly the opposite result
would
be produced by the success of the measure. As the value of silver
had depreciated on account of its demonetization by England,
Germany, and other European countries, and the increased
production of silver from the mines of the west, the question was
also raised as to whether the government was not pledged to pay
its debts in gold. The bill, however, was passed early in 1878,
having been amended so as to limit the coinage of silver, and also
to secure to the government the profit of the coinage.
The Bankrupt Act, which had been
in operation since 1867, was repealed during the latter part of
this session.2
The commission to whom, under the
Treaty of Washington,3 had been referred the
difficulties between the United States and Great Britain growing
out of the question of fisheries off the coasts of
Newfoundland and Nova Scotia, sat at Halifax during August, 1878,
and finally agreed that the United States should pay to Great
Britain the sum of five millions five hundred thousand dollars, as
a compensation for fishing privileges for the term of twelve
years. The people of the United States considered this award
excessive and unjust, but notwithstanding, the claim was promptly
paid.
*How pronounced, and where located?
1 See p. 322, ¶ 25. 2 See p. ¶ 8. 3 See pp. 319-320, ¶ 20.
QUESTIONS. -- 33. What Indian outbreak occurred this summer? 34. Why was an extra session of Congress called in October of this year? What prominent bill was introduced at the regular session in December? Give a general account of it. Did the bill pass? How was it amended? When was the Bankrupt Law repealed? Give an account of the settlement of the fisheries question. What was the feeling of the people of the United States?
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In the early part of 1879 a
bill was introduced into Congress, having in view the
lessening of Chinese
immigration. It was favored more especially by those from the
states of the Pacific coast. Its opponents believed the
measure unnecessary and unwise, as well as in direct violation of
the treaty existing with China.1 The bill passed
Congress, but was vetoed by the president and failed
to become a law.
35. An extra session of Congress
was called by the president on the 18th of March, for the purpose
of passing appropriation bills not acted upon at the regular
sitting.
Early in June a fresh Indian trouble was
developed by the actions of the Utes, in Colorado. They
became discontented and began to burn the forests and grasses
along the line of their reservation. They also tyrannized over the
white settlers, committed acts of arson, and denied the right of
the authorities to arrest them on their reservation.
Difficulties occurred at the White
River Agency, which finally culminated in an attack, in which
Agent Meeker and seven white men were massacred by the
Indians. The women and children were not harmed, but were secured
and taken to the home of Ouray, one of the chiefs of the
tribe. They were afterwards given up to General Adams. A
conference was finally had between Generals Adams and
Hatch and Chief Ouray, in which the latter agreed to
surrender the twelve Indians who were concerned in the
Meeker outrage, provided they should be taken to
Washington for trial. These terms were
accepted.
36. The year 1879 was noticeable
for a revival of business. From all quarters of the
United States there were reports of better times and
general activity. Manufacturing everywhere increased, trade
received new life, agricultural productions were abundant, and the
depression which had followed the war began at last to pass
away.
Here, for the present, this history closes. Its course, from the beginning, shows the protecting care of God over the American nation, and gives confidence that under His guidance a people who, during the late momentous years of their history, have evinced such patriotic energy, wise forecast, determination in disaster, and moderation in success, will continue to maintain the high resolve, that "the government of the people, by the people, and for the people, shall not perish from the earth."
1 See p. 318, ¶ 13.
QUESTIONS. -- What is said concerning the Chinese immigration bill? 35. When and why was an extra session of Congress called? -- Give an account of the uprising of the Utes. What took place at the White River Agency? What conference occurred, and with what result? 26. For what was the year 1879 noticeable?
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© 1999, 2000, 2001 for NEGenWeb Project by Ted & Carole Miller