1893-4] New Tariff Bill Labour disturbances. 669 such other legislation as would assure the maintenance of the gold standard. On November 1 the clause was repealed, but no other legislation was adopted. The gold reserve had then fallen to about $80,000,000. Meanwhile, the Democratic members of the Committee on Ways and Means of the House of Representatives had begun the preparation of a tariff bill. The result of their labours was the Wilson Bill, which derived its name from that of the chairman of the committee. Its basal principles were the adoption, wherever practicable, of ad valorem instead of specific duties, and the freeing from taxation of " those great materials of industry that lie at the basis of production." The free list was largely extended, and rates of duty were generally lowered. The loss of revenue was expected to be made good by an internal revenue bill. A clause was inserted repealing the reciprocity provision of the McKinley Act. The principal feature of the Internal Revenue Bill was a tax of two per cent, on the incomes of individuals and of corporations ; but, in the case of individuals, only income in excess of $4,000 was to be assessed. Strong opposition to this measure was manifested in the East, but it was popular in the South and West ; and a Democratic caucus, against the wish of Wilson, decided to attach it to the Tariff Bill. The bill, as thus amended, was adopted by the House of Representa- tives; but in the Senate it was thoroughly revised. Sugar, iron ore, and coal were restored to the dutiable list ; and, when the bill came to be discussed, it was evident that, by reason of its bearing on the indus- tries of various States, it could not command undivided party support. When it passed the Senate, early in July, 1894, it was essentially altered ; and it was not until August 13 that an agreement was reached between the two Houses. In the meantime the questions at issue had produced a serious breach in the Democratic ranks ; and President Cleveland had openly espoused the cause of the House of Representatives, especially with reference to the sugar schedule. A compromise measure, which was known as the Wilson-Gorman Bill, became law on August 28, without the President's signature. The income-tax was retained, but it was subsequently declared by the Supreme Court to be unconstitutional. In the elections held in the autumn of 1894 the Republicans swept the country, securing a majority of 140 in the House of Representatives, in which many leading Democrats, including Wilson, lost their places. The Democrats also lost their hold on the Senate. While the struggle over the tariff was in progress at Washington, a serious labour disturbance occurred at Chicago. The workmen employed in the shops of the Pullman's Palace Car Company near that city having struck against a reduction of wages, and the company having refused to refer the matter to arbitration, the president of the American Railway Union, an organisation of railway workers, ordered a sympathetic "boycott" of Pullman cars. The execution of this order was accom-
