Republican Party and the nomination of Rutherford B. Hayes, former governor of Ohio.

The Whisky Ring. Grant was conscientious in trying to hold the country under good government, but the era was marked by notorious frauds committed against the United States. Among these was the Whisky Ring. This was made up of a number of corrupt politicians who stood in favor with certain rich distillers in this country, and who defrauded the government out of large sums of money by not reporting the true quantity of whisky manufactured, and thus allowing the distillers to go on manufacturing large quantities of liquor without paying the required revenue tax. In return for not reporting correctly on the quantity, the tax collectors were given sums of money as bribes. This system of grafting, as it was called, was discovered. Then Grant ordered that every one detected

be brought to speedy trial and convicted. Over two hundred convictions were made and the offenders fined and imprisoned.

Indian Troubles. When the war was over the government of the United States gave large sums of money and vast areas of land to certain railroad companies, provided that they would undertake the construction of a transcontinental road. This work was taken up and successfully carried on, but with it came some serious outbreaks of the Indians. The most important of these troubles was with the Sioux, whom the government attempted to remove from their lands to other reservations farther west. The Indians ob

SITTING BULL.

jected. Led by their chiefs, Sitting Bull, Crazy Horse, and Rain-in-the-Face, they made a number of fierce protests against removal. The government was obliged to send out troops to suppress the Indian outbreaks. Their most notable stand against the Indians was made by General Custer with six hundred

men on the Little Big Horn River, Montana. Custer and all of his men were caught in the valley and within a half hour they were massacred by the Indians. Not one of their number escaped. Later on General Canby succeeded in suppressing the Indians and removed them to the reservations that were assigned to them.

GENERAL CUSTER.

Great Disasters. During this administration two great fires occurred that were awful in their consequences. One took place in Chicago, and was caused by a cow overturning a kerosene lamp in a stable and setting fire to the premises. A stiff breeze was blowing from the lake, and before the fire could be controlled, the flames had spread into the neighborhood. For two days and nights the flames raged, consuming all grades of property. It was estimated that thirty thousand houses were destroyed, two hundred million dollars' worth of property lost, and one hundred thousand persons were left homeless.

In the following year another disastrous fire occurred in the city of Boston, Massachusetts. Large numbers of properties in the business center of the town were consumed. The loss of which was estimated at eighty millions of dollars.

In both cities the residents began rebuilding; and in a short time splendid fireproof and modern buildings took the place of the lost property. Better facilities for managing fires were devised. Laws for fire prevention were also established in many states.

Organization of Labor. - On Thanksgiving Day of 1859 the garment cutters of Philadelphia met and organized the "Noble Order of the Knights of Labor." Their object was to reduce the hours of labor to eight per day and to secure a weekly pay day, better legislation for the protection of laborers in factories, mines, and workshops, and protection of women and children's labor. Their membership was open to all trades and nationalities, both men and women. The movement was received throughout the country with cordial appreciation. Within a very few years the Knights of Labor numbered millions of wage

earners.

The organization did not form a political party, but its members voted with the political faction of their own choice. In all of the states and cities where the organization was formed, the members worked steadily and effectively for proper legislation for the working classes. The result of their efforts was the establishment of the United States Department of Labor, the organization of bureaus of arbitration in some of the states, and child labor laws. To a certain extent, they succeeded in getting the United States to prohibit the immigration of the Chinese.

American Federation of Labor. Somewhat later the organized trade unions in the United States planned to establish the American Federation of Labor. This association encouraged the laboring classes to form separate trade-unions for the promotion and protection of their respective trades. This organization has not been political in its plans and its members have been generally conservative in their ideas. Like the Knights of Labor, the Ameri

can Federation has been drawn into labor strikes that have been of serious moment in the United States.

Great National Strikes. After the panic of 1873, a number of leading railroads reduced the wages of their employees. This was the cause of widespread discontent.

For some time the issues were discussed by both sides; but no agreement could be reached; and a strike was threatened. Thousands of railway employees appealed to their unions. A sympathetic strike was declared in which many men took part. The railroads attempted to import laborers into the districts where the strike was on, in order to take the places of the strikers. This led to intense feeling between the railway workmen and the railroad managers. Riots took place in some of the cities. In Pittsburgh the situation became markedly serious. Several million dollars' worth of property was destroyed. Here the state and national troops were ordered out to restore order.

Two years later another great strike occurred in St. Louis. It spread to other cities. Again all transportation was tied up and business interests delayed, while riots occurred, and there was considerable loss of property. The national troops were summoned as before, and the troubles suppressed with some loss of life.

Chicago Anarchists. In the same year, 1886, that the St. Louis strike occurred, the Labor Unions in Chicago demanded an eight-hour day." In order to secure this demand thousands of men quit work, and refused to let others take their places. Important public meetings were held in various parts of the city where the workingmen gathered and discussed their grievances. One of the speakers declared that the men should use force, if necessary, to gain their rights. His speech was so inflammatory that he was arrested; and, while he was on his way to the police station, an anarchist threw a dynamite bomb into the crowd

and killed several persons. This act of violence was condemned by the workingmen, as well as by the public. The unwise teachings of the anarchists, that the government and the laws were wrong and unjust and should be destroyed, were also condemned throughout the country.

Panic of 1873. At the close of the war there was a renewed interest in business. Enterprises of larger magnitude were planned. Capitalists began now to organize their money into corporations for the purpose of making large deals and rapid dividends on their investments. Railroads were merged into trunk lines. Mines were consolidated into extensive stock companies. Manufacturing interests were combined. Thus the entire country was in the heyday of a new business activity.

National Debt Decreased. While this industrial and financial energy was stimulating the country, the government decreased the national debt by taking one hundred million dollars of paper money out of circulation. At this time the value of a paper dollar had decreased until it was worth only seventy cents instead of one hundred. This depreciation was beginning to be felt, as the national supply of gold and silver in circulation was reduced in 1871 over sixty million dollars. This was because a large amount was taken to Europe in exchange for European goods, and the sale of American products in Europe did not make up the difference. The great fires in Chicago and Boston destroyed millions of dollars' worth of property. These fires also caused a depression in business. Many investors became reckless in their plans and built railroads beyond the needs of the population, so that great sums of money were going out in all directions, and there was not a corresponding return.

Financial Reaction. The consequence was that all of these influences brought about a rapid reaction in money circles. Rich firms began to fail. Many people drew their