and sold in this country without the payment of a royalty to the author. It is fair to say, however, that, for the most part, a sense of honor induced those who made use of the opportunity to pay the foreign author a reasonable compensation.

661. The Seal Fishery Question. After the purchase of Alaska (1867) the United States assumed entire control of the seal fisheries in Bering Sea. England, however, claimed that the jurisdiction of the United States did not extend beyond a three-mile limit and encouraged the Canadians in sealing outside of that boundary. Matters were brought to a crisis when our cruisers began to attack and confiscate (1886) the Canadian seal vessels. The trouble was, however, adjusted by a board of arbitrators, who met at Paris (1893). This board.

decided that the United States had no jurisdiction over the seal fisheries beyond the three-mile limit, but that both nations might join in protecting the seals in the open water to prevent their extermination. This adjustment of the difficulty concerning seal fisheries without appeal to arms was another of the many triumphs of arbitration.

662. Oklahoma Territory Opened-Six New States Admitted. Shortly after Harrison's inauguration, the United States purchased Oklahoma, which then formed a part of Indian Territory, from the Creek and Seminole Indians. In order to prevent unlawful speculation, the President issued a proclamation forbidding entrance into the territory before noon of April 12, 1889. As the soil and climate of the new territory were particularly desirable, about fifty thousand people called

"boomers" gathered on the border, and at the first blast of the bugle rushed into the "promised land." Then began the . scramble for selecting lands from the two million acres which were thrown open to settlement that eventful day. Cities and towns and a new commonwealth were created in a wilderness within twenty-four hours.

Four states entered the Union in 1889-North Dakota, South Dakota, Montana, and Washington. Two entered in 1890Idaho and Wyoming.

663. The Johnstown Flood. The city of Johnstown and a number of villages located on the Conemaugh River in western Pennsylvania suffered an appalling disaster May 1, 1889. A dam in the river gave way and the flood swept villages and towns before it. The greater part of Johnstown was destroyed. Thousands of lives and millions of dollars' worth of property were lost. Again, as in similar instances, the generosity of the American people came to the aid of the stricken inhabitants.

664. Two Centennials. The hundredth anniversary of the beginning of our government under the Constitution and the inauguration of Washington was commemorated by a grand three days' celebration in New York City (April, 1889). Characteristic features of the festivities were naval and military reviews, and a grand parade exhibiting all the industries and the trades of the American metropolis. Commemorative exercises were held at the Sub-Treasury Building on Wall Street, which occupies the site of Old Federal Hall where Washington took the presidential oath. At the close of the exercises, the Most Reverend Archbishop Corrigan of New York gave his blessing to the assembled multitudes.

In November of the Constitutional Centennial (1889), the Catholic Church of America also celebrated the first centenary anniversary of the establishment of its hierarchy.

665. The First Catholic Lay Congress. The celebration of the centennials of the inauguration of Washington as the first President of the nation, and the installment of the Very Rev

erend Father Carroll as first Bishop of the United States, were marked also by the meeting of the first Catholic Lay Congress in the United States. It was composed of fifteen hundred delegates from the several dioceses, including men of various nationalities, also Indians and negroes-all of whom joined in perfect harmony for the common purposes of the occasion which were increased activity on the part of the laity in aid of the clergy; a declaration of views on the important Catholic questions of the hour; and the assistance of the poor.

666. Indian Troubles-Strikes. Trouble with the Sioux Indians again broke out (1890) in Dakota. Sitting Bull, having once more excited his tribe to hostility, engaged in a bloody battle with the United States troops under General Miles at Wounded Knee, South Dakota. About two hundred Indians were killed, among whom were Sitting Bull, his son, Crow Foot, and six other famous warriors. The Indians, seeing the hopelessness of continuing the strife, finally surrendered.

The workmen of the Carnegie Steel Works at Homestead, near Pittsburg, struck (1892) for higher wages. Scenes of violence occurred, and a number of persons were killed. A military force sent by the government of Pennsylvania finally occupied the city and restored order.

667. The Campaign of 1892. In the campaign of 1892, Harrison was again the nominee of the Republican party, and Cleveland the choice of the Democrats. Their platforms were much the same as in 1888. The People's party, an outgrowth of the Greenback party, named James B. Weaver of Iowa as its candidate on a platform demanding among other things, the free coinage of silver and gold at a ratio of sixteen to one, an income tax from persons having an income exceeding four thousand dollars per year, the control of railroads, telegraphs, and similar public service corporations by the government, a national currency to be loaned to the people at two per cent on the security of certain farm products, and the issue of money by the government only, and not by the banks.

CHAPTER XXXVIII

GROVER CLEVELAND'S SECOND ADMINISTRATION

DEMOCRAT-1893-1897

668. Cleveland and Stevenson Are Elected. The result of the election of 1892 was a sweeping victory for the Democratic party, which elected both the President and Congress. Grover Cleveland was chosen by a majority of one hundred and thirtytwo electoral votes over Benjamin Harrison, and a plurality of one hundred and ten votes over Harrison and Weaver. Adlai E. Stevenson was chosen Vice-president.

669. The Panic of 1893. Cleveland, as we have noted, began his administration with a Democratic majority in both houses of Congress-something unheard of since the outbreak of the war. The country, too, was enjoying unusual prosperity. But the pension, tariff, and monetary legislation of the previous presidency had greatly disturbed the financial world. Scarcely had the Democratic administration begun its career, when a great currency famine and, subsequently, a disastrous panic swept over the country. Hundreds of banks failed; business houses suspended work; thousands of laborers were thrown out of employment; great distress became apparent among the poorer classes; strikes were common, and the number of vagrants increased enormously.

The reasons for the panic of 1893 may be found in the following facts:

(a) the manufacturers of the country feared that Democratic supremacy would decrease or do away with the protective tariff. Such a turn of affairs, they argued, would flood our markets with foreign articles, greatly reduce prices, and, consequently, occasion disaster to those in

possession of a large stock of home manufactures. Therefore they suspended work in their shops as soon as it became evident that the Democrats would win the election. Thus thousands of workmen were left without means of support and the business of the country was prostrate;

(b) the greenbacks in circulation amounted to a very large sum, and the monthly quantity of bullion, which the treasurer was directed to buy, was to be paid for with new notes "exchangeable for coin." Now, "coin" meant gold. Thus, the notes in circulation were redeemable in gold to an enormous amount (five hundred million dollars in 1893). This sum was constantly being increased by the provisions of the Sherman Act, and naturally the people began to doubt the ability of the government to redeem the notes in gold. This serious condition of financial affairs finally brought the panic; (c) silver had fallen in twenty years (1873-1893) from one dollar and thirty cents to about eighty cents an ounce. This frightened American as well as European depositors and creditors, who feared that the government, not having enough gold in readiness, might decide to redeem its notes in silver, instead of gold. Hence they started "runs" on the banks to redeem their bonds and notes in gold before the government should offer pay for them in less valuable coin. Then came the crash banks, being unable to meet the demands, failed; business men, finding it impossible to borrow money, had to suspend work, which meant the discharge of laborers and consequent hard times.

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670. The Repeal of the Sherman Act. In order to stop the further purchase of silver bullion and consequent issues of silver certificates, which continued to drain the gold in the treasury, Cleveland summoned a special session of Congress and advised the repeal of the Sherman Act. Shortly after,