by which
the Secretary of the Treasury could return his surplus funds to the
channels of trade was by redeeming government bonds; but as these were
the basis of bank note issues, the effect of any such action was to
produce a sharp contraction in this class of currency. Between 1882
and 1889, national bank notes declined in amount from $356,060,348
to $199,779,011. In the same period, the issue of silver certificates
increased from $63,204,780 to $276,619,715, and the total amount
of currency of all sorts nominally increased from $1,188,752,363 to
$1,405,018,000; but of this, $375,947,715 was in gold coin which was
being hoarded, and national bank notes were almost equally scarce since
they were virtually government bonds in a liquid form.

As the inefficiency of the monetary system came home to the people
in practical experience, it seemed as if they were being plagued and
inconvenienced in every possible way. The conditions were just such as
would spread disaffection among the farmers, and their discontent sought
an outlet. The growth of political agitation in the agricultural
class, accompanied by a thorough-going disapproval of existing party
leadership, gave rise to numerous new party movements. Delegates
from the Agricultural Wheel, the Corn-Planters, the Anti-Monopolists,
Farmers' Alliance, and Grangers, attended a convention in February,
1887, and joined the Knights of Labor and the Greenbackers to form the
United Labor party. In the country, at this time, there were numerous
other labor parties of local origin and composition, with trade
unionists predominating in some places and Socialists in others.
Very early, however, these parties showed a tendency to division that
indicated a clash of incompatible elements. Single taxers, greenbackers,
labor leaders, grangers, and socialists were agreed only in condemning
existing public policy. When they came to consider the question of what
new policy should be adopted, they immediately manifested irreconcilable
differences. In 1888, rival national conventions were held in
Cincinnati, one designating itself as the Union Labor party, the other
as the United Labor party. One made a schedule of particular demands;
the other insisted on the single tax as the consummation of their
purpose in seeking reform. Both put presidential tickets in the field,
but of the two, the Union Labor party made by far the better showing at
the polls though, even so, it polled fewer votes than