465.  The McKinley Tariff, 1890.—­One of the questions most discussed in the campaign of 1888 was the reform of the tariff.  There seem to have been two sets of tariff reformers.  One set of reformers proposed to reform the tariff by doing away with as much of it as possible.  The other set of reformers proposed to readjust the tariff duties so as to make the protective system more consistent and more perfect.  Led by William McKinley, the Republicans set to work to reform the tariff in this latter sense.  This they did by generally raising the duties on protected goods.  The McKinley Tariff Act also offered reciprocity to countries which would favor American goods.  This offer was in effect to lower certain duties on goods imported from Argentina, for instance, if the Argentine government would admit certain American goods to Argentina on better terms than similar goods imported from other countries.

[Illustration:  THE CAPITOL AT WASHINGTON.]

[Sidenote:  Gold and Silver]

[Sidenote:  Sherman Silver Law.]

466.  The Sherman Silver Law, 1890.—­In the Civil War gold and silver had disappeared from circulation.  But after the close of the war a gradual return was made to specie payments.  In the colonial days the demand for silver, as compared with the demand for gold, outran the supply.  The consequence was that silver was constantly becoming worth more in comparison with gold.  In the nineteenth century the supply of silver has greatly outstripped the demand, with the result that silver has greatly declined in value as compared with gold.  In 1871 the government decided to use silver for small coins only, and not to allow silver to be offered in payment of a larger sum than five dollars.  This was called the “demonetization of silver.”  In 1878 a small but earnest band of advocates of the free coinage of silver secured the passage of an act of Congress for the coinage of two million silver dollars each month.  The silver in each one of these dollars was only worth in gold from ninety to sixty cents.  In 1890, Senator John Sherman of Ohio brought in a bill to increase the coinage of these silver dollars which, in 1894, were worth only forty nine cents on the dollar in gold.

[Sidenote:  Business depression.]

[Sidenote:  Cleveland elected President, 1892.]

467.  Election of 1892.—­One result of this great increase in the silver coinage was to alarm business men throughout the country.  Business constantly declined.  Every one who could lessened his expenses as much as possible.  Mill owners and railroad managers discharged their workers or reduced their wages.  Harrison and Cleveland were again the Republican and Democratic candidates for the presidency.  As is always the case, the party in power was held to be responsible for the hard times.  Enough voters turned to Cleveland to elect him, and he was inaugurated President for the second time (March 4, 1893).