XXVII. SECOND ADMINISTRATION OF DROVER CLEVELAND Cabinct.—seerrtary of State, Walter Q. Gresham. Indiana, March 6, 1893; Richard Olney. Massachusetts, June 10, 1895. Secretary of the Treamw„John G.Carlisle, Kentucky, March 6. 1893. Secretary of War, Daniel S. Lamont. New York, March 6, 1893. Secretary of the Nary, Hilary A. Herbert. Ala bama, March 6, 1893. secretary of the interior, Hoke Smith, Georgia. March 6. 1893. t General, Richard Olney, Massachusetts. March 6, 1893; Judson Ohio. Postmaster-Gen eral, Wilson S. Bissell. New York, March 6, 1893; William L. Wilson. West Virginia, March, 1895. Secretory of Agricult lire, J. Sterling Morton, Nebraska, Mareh 6, 1893.
In his second administration the President applied himself particularly to the promotion of tariff and financial reforms, and this period was marked by the intense and persistent opposition of his own party in both Houses of Congress. His earliest act of importance was the with drawal from the Senate of the treaty for the an nexation of Hawaii to the United States, which had been negotiated in the closing days of the previous administration. Ile also sent James H. Blount, ex-Congressman from Georgia, to Hawaii as a special commissioner to investigate the cir cumstances of the overthrow of the royal Govern ment, and, on his report, took the ground that the United States Government had through its representatives committed a grievous wrong against the kingdom. See HAWAIIAN ISLANDS.
The legislation on the tariff was the most im portant domestic incident of this term. A new bill, bearing the name of Chairman Wilson, of the House Committee on Ways and Means, and pro viding for free raw sugar, free wool, free coal, free lumber, and free iron ore, and reducing the duties on many articles in the existing schedules, was introduced December 19, 1893. In the fol lowing month a measure providing for an income tax was presented in the House, and that and others concerning the internal revenue were in corporated in the bill during the subsequent debate. When the bill reached the Senate it underwent radical alterations, many amendments being made, notably those imposing a duty on sugar, coal, and iron ore, and the House at first refused to concur in the Senate amendments. Fi nally, however, it withdrew from its position of non-coneurrence and the bill was passed. (See TARIFF.) The President allowed the bill to be come a law without his signature. On an appeal to the United States Supreme Court, that body, April 2, 1893, declared two provisions of the in come-tax law unconstitutional, and upheld the remainder by a tie vote, and on May 20th, OD a rehearing, declared the whole measure unconsti tutional.
Early in the term occurred the great com mercial panic of 1S93. which was followed by a long period of depression. President Cleveland was determined to maintain the gold stand ard, and in the summer of that year called an extra session of Congress in order to secure the repeal of the Sherman Act of 1890. This he ac complished in the face of great opposition. In January, 1894, because of the heavy withdrawal of gold coin from the Treasury and the large re duction in the gold reserve of $100,000,000, Sec retary Carlisle, of the Treasury Department, in vited proposals for the purchase of $50,000,000 of 5 per cent. bonds, and this sale resulted in the acquisition of $58.660,917 in gold, which was added to the reserve. The drain on the reserve, however, continued, and in November following the Secretary issued a second call for the purchase of $50,000,000 bonds, when the subscriptions aggregated $178.341,150 and the sale yielded $58,538,500 in gold, which brought the reserve to $111.142,021. In about two months after this sale the reserve declined to $41,340,181. The President, in a special message to Congress, January 28, 1895, recommended that authority be given the Secretary of the Treasury to issue bonds bearing a low rate of interest, to maintain the reserve and redeem outstanding notes issued for the purchase of silver; but Congress did not approve the recommendation. Secretary Carlisle then signed a contract with New York bank ers to supply the Government with 3,500,000 ounces of standard gold coin, at the rate of $17.80441 per ounce, for 30-year 4 per cent, bonds, on conditiun that one-half of the coin should be obtained in Europe, and that if Congress should authorize their issue, bonds payable in gold and bearing 3 per cent. interest might with in ten (lays be substituted at par for the 4 per cent. bonds. The President again urged Congress to authorize the issue of low-rate bonds, declar ing in his message that more than $16,000,000 in interest would be saved thereby, and Congress again withheld its sanction. Under the contract the Secretary sold $62,315,000 in bonds for a little over $65,000,000 in gold. The subscriptions to this loan aggregated $590,000,000 in London and $200,000,000 in New York. Under the con tinuance of the business depression, Secretary Carlisle was forced early in 1896 to sell $100, 000,000 of 30-year 4 per cent. bonds.