The Crime of 1873: Did He or Didn't He?

SEC.15. That the silver coins of the United States shall be a trade-dollar, a half-dollar, or fifty-cent piece, a quarter-dollar, or twenty-five cent piece, a dime, or ten-cent piece; and the weight of the trade-dollar shall be four hundred and twenty grains troy; the weight of the half-dollar shall be twelve grams (grammes) and one-half of a gram. (gramme;) the quarter-dollar and the dime shall be respectively, one-half and one-fifth of the weight of said half dollar; and said coins shall be a legal tender at their nominal value for any amount not exceeding five dollars in any one payment.

     The Free Silver movement became popular after people realized what the Coinage Act

of 1873 had done - effectively demonetizing silver in this country. The term Free Silver

meant unlimited coinage of silver. Economic panics in 1873 and later in 1893 stirred up

the issue - especially in western states. The Bland-Allison Act and the Sherman Silver

Purchase Act enabled the government to buy some quantities of silver, but did not placate

the Silverites. Democratic President Grover Cleveland did not like the Sherman Act and

made sure Congress repealed it in 1873. The defeated Democratic Presidential candidate

William Jennings Bryan built his campaign around free silver in 1896.  Bryan did receive

eighty-one percent of the vote in Nevada. The United States went on the gold standard in

1900. This ended the Free Silver movement.

      Three years after the Coinage Act passed, Senator Stewart began to complain that

 a massive crime had been committed, perpetrated by easterners and European financiers.

Stewart spoke about the silver question often, appearing as a buffoon in political cartoons.

       Stewart continued his finger pointing for years, possibly for the reason of covering up

or making up for his part in demonetization. Henry Linderman, the Mint Director in

Philadelphia, created most of the wording of the act. Sherman introduced the bill in

Congress. A copy of a check indicated western banker William Ralston bribed Linderman.

Ralston papers note he paid large sums of money to Linderman. Ralston’s

Bank of California intertwined very deeply with the Comstock fortunes.  When Europe

went on the gold standard, Ralston feared too much silver would be dumped in America.

Comstock silver might lose value. Ralston exerted influence on western politics. It was

well known that Stewart helped things go well for the "Bank Gang" who ran it.

 Ralston liked to stay in the background, but he was the brains behind this financial

 organization. According to a paper by Yale Professor Daniel Decanio, Ralston’s plan

was to have a silver trade dollar to be used in the world market, but not the United States.

He thought California’s proximity to the Asian markets would result in more money for

the Bank of California and more wealth piling up at the Comstock. By 1875 Ralston and

Linderman were dead. The Bank of California collapsed the same week as Ralston’s

death. The day he lost the title of bank president, he drowned in the Pacific Ocean – quite

possibly a suicide, but another point never proven.

     With Linderman and Ralston both dead, Stewart ramped up his accusations and finger

 pointing. Stewart denied knowledge of the so-called crime. It is hard to believe Stewart

did not know what was going on as the bill took three years to get through Congress.

He was exceedingly bright; few details ever escaped his eagle like mind. Stewart spent a

great deal of time blaming William Sherman, the congressman who introduced the bill.

Sherman would not go along with abolishing the coinage rate, another possible outcome

desired by Ralston. The truth of Stewart’s involvement will never be known. Senator

Stewart even rejoined the Republican party after his stint with the Silver Party.

     William Morris Stewart and William Chapman knew each other quite well. Stewart

Ralston came from similar backgrounds. Both had several siblings, traveled to the

 West during the gold rush and possessed insatiable desire for wealth and power.

They achieved these goals, but both had serious money problems by the end of their lives.

Ralston went west via the southern route. He stayed in Panama for five years working for

a steamship company. Stewart and Ralston could have met as Stewart journeyed through

Panama, also on the way to California. One of Ralston’s brothers purchased a Stewart

home in Carson City when the family was off to Washington D.C. Ralston parlayed his

money and by 1864 opened the Bank of California. He was always the brains behind the

operation, but chose the title of head cashier. He fell in love with San Francisco with

hopes of making it a cultural mecca of the world. This took money - and lots of it. With

William Sharon as his right hand man in Virginia City, the Bank of California invested in

the highly prized Comstock Lode. Through Sharon’s astuteness the Bank Gang from

California controlled profits from the best mines and mills. Stewart spent time in San

Francisco, learned the law profession and dabbled in mines – another opportunity for

Ralston and Stewart to know each other. Stewart relocated to Virginia City and made a

fortune settling mining disputes. Stewart represented big mining companies. Ralston and

the Bank of California owned the mines. When Nevada became a state Stewart turned to

politics. It took financial backing to win elections, and the Bank of California supported

Stewart with generous contributions. That included the payback of Stewart supporting the

bank interests. One example of Ralston influence over Stewart came when the quirky

Adolph Sutro desired to build a tunnel through Mt. Davidson for mining safety and

financial reasons. Stewart became the first president of the Sutro Tunnel Company. When

Ralston realized that the Bank would lose money if the tunnel became a reality, he turned

against it. In a short time Stewart resigned as the president and belittled the project.

     Ralston liked to control political activities in Washington D.C. He often influenced

Senator Stewart to help achieve his goals. When Stewart did not prove powerful

enough to get things done Ralston’s way, his crony William Sharon received the

call to become a U.S. Senator. As it turned out, both Senator Sharon and then Senator

James Fair contributed little during Stewart’s twelve-year hiatus. When Stewart ran again,

Nevada citizens believed him to be a firm proponent of the free silver movement. Stewart

talked about the Crime of 1873 from 1876 until he became a Republican again after

William McKinley won the election in 1898. Stewart himself mentioned in a speech that

perhaps it was best not to know what had actually happened in regard to the Crime of ’73.

He could have been talking about himself.