Sold – In a Letter Sent “In Strict Confidence,” President Grover Cleveland Discusses Strategy on Important Financial Matters

An 8 page letter, also hoping not to be hardened on receiving kindnesses as President: “It is said that public life hardens one to these things I hope I shall be able to stand it.”

One of the most contentious issues dividing the Republican and the Democratic parties in 1887 was that of high protective tariffs. While it had not been a central point in his campaign, Cleveland’s opinion on the tariff was that of most Democrats: that the tariff ought to be reduced. Republicans generally favored a high tariff to protect American industries. American tariffs had been high since the Civil War, and by the 1880s the tariff brought in so much revenue that the government was running a surplus.

In 1886, a bill to reduce the tariff was narrowly defeated in the House. The tariff issue was emphasized in the Congressional elections that year, and the forces of protectionism increased their numbers in the Congress. Nevertheless, Cleveland continued to advocate tariff reform. As the surplus grew, Cleveland and the reformers called for a tariff for revenue only. His message to Congress in 1887 (quoted below) pointed out the injustice of taking more money from the people than the government needed to pay for its operating expenses. Republicans, as well as protectionist northern Democrats like the powerful Speaker of the House from Pennsylvania, Samuel J. Randall, who believed that without high tariffs American industries might fail, and continued to fight reformers’ efforts. Roger Q. Mills, the chairman of the House Committee on Ways and Means, proposed a bill that would reduce the tariff burden from about 47% to about 40%.  After significant exertions by Cleveland and his allies, the bill passed the House. The Republican Senate, however, failed to come to agreement with the Democratic House, and the bill died in the conference committee. Dispute over the tariff would carry over into the 1888 presidential election.

Of the names mentioned in the following letter, William Mutchler was a Congressman from Pennsylvania; Arthur D. Markley a Pennsylvania Democrat and future member of state senate. He was also son-in-law of powerful politico and future U.S. Senator Boies Penrose;  Richard H. Hand a New Jersey politician and cousin of Judge Learned Hand; Richard Patterson likely the member of the Pennsylvania state house of representatives of that name; and Antonio Joseph a delegate to U.S. Congress from New Mexico Territory.

Autograph Letter Signed as President on Executive Mansion letterhead, eight pages, Washington, May 11, 1887, to Democratic Congressman William Lawrence Scott of Pennsylvania. Scott also served as a member of the Democratic National Committee and was a Cleveland ally.

“Your kind letter and the barrel therein referred to have arrived and I return my sincere thanks for both.  I never owned a barrel of whiskey before and it makes me feel very rich, which sensation I understand often accompanied the consumption of a much less quantity.  Your repeated kindnesses  come upon me so fast that I am in a chronic state of thankfulness; but as it is said that public life hardens one to these things I hope I shall be able to stand it.

“I want to talk with you about a number of things, and as you will persist in running away I shall try to write you something concerning them. Randall was in the other day & seemed to be amiable.  He said he was going to Philadelphia in a few days and hoped to get the Marshall business eased up a little as far as Joseph is concerned.  I said I would wait till I saw him again.  He spoke very highly of course of Hand and I really expect he will see him before he returns.  He also approved very fully the selection of Patterson for the place he holds.  Mutchler was in a day or two ago and seems to think under all the circumstances Markley would be the best appointment – though he spoke well of Hand and only doubted the propriety of his selection because he was known as a Randall man and perhaps a recognition of another element might be more useful.  I honestly think Pennsylvania matters are straightening out.

“Now another thing in strict confidence.  I am thinking strongly of consolidating some of the Internal Revenue districts.  It ought to be done in the direction of economy and business methods and I am of the opinion that this movement would rob people in Congress who want to reduce the revenue in that quarter instead of by readjusting the Tariff, of an argument based upon the present expense of conducting an Internal Revenue System.  The consolidation under advisement would dispense with Boyle’s friend who is quite inefficient and the office at Erie.  It puts both of these two Districts in McGonigles and a part in Biglers.  Of course some of the Collectors thus superceded can be retained as Deputies.

“I have talked with a few of our people on the general subject of this consolidation scheme and they all seem to think it should be done.  In fact looking the thing all over I think I cannot help it.  Have you anything to say about the two PA Collectors who it seems might be dispensed with?  It happens that both of them come pretty near you there I mention my intention, though I don’t expect to do so in any other case.  If these things are done they ought to be done pretty soon so that the new arrangements can begin with the new fiscal year.” Accompanied by the original Executive Mansion mailing envelope, addressed by Cleveland to “Hon. Wm L. Scott Erie Pennsylvania”, adding “Personal.” It is housed in a custom case.

The issues of the tariff and internal revenue continued to receive Cleveland’s attention. In his Third Annual Message to Congress on December 6, 1887, Cleveland stated attacked the tariff: “The public Treasury, which should only exist as a conduit conveying the people’s tribute to its legitimate objects of expenditure, becomes a hoarding place for money needlessly withdrawn from trade and the people’s use, thus crippling our national energies, suspending our country’s development, preventing investment in productive enterprise, threatening financial disturbance, and inviting schemes of public plunder.” However, he never did succeed in obtaining a significant tariff reduction. And in his Executive Order of May 7, 1895, he designated new Internal Revenue Rules to deal with the abuses he was concerned with here, thus achieving that goal.