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===Budget surplus and civil service reform=== The Delaware legislature re-elected Bayard to the Senate for a third term in 1881 without serious opposition.{{sfn|Tansill 1946|p=295}} The Senate in the [[47th United States Congress|47th Congress]] was evenly divided between Republicans and Democrats, with the new vice president, Arthur, holding the tie-breaking vote.{{efn|The Senate contained 37 Democrats, 37 Republicans, and two independents, one of which caucused with each major party.}} After spending the special session of March 1881 in an intra-Republican Party fight over the confirmation of Garfield's cabinet nominees, the Senate went into recess until October.{{sfn|Tansill 1946|pp=296β299}} By that time, [[Assassination of James A. Garfield|Garfield had been assassinated]] and Arthur was president.{{sfn|Tansill 1946|pp=296β299}} When the Senate reconvened, the Democrats held the majority briefly, and Bayard was elected [[President pro tempore of the United States Senate|president pro tempore]] on October 10; Republicans regained the majority three days later as Republican latecomers arrived and were sworn in, and David Davis took over the office.{{sfn|Tansill 1946|pp=296β299}} Among the issues confronting the Senate was the surplus of government funds. With high revenue held over from wartime taxes, the federal government had collected more than it spent since 1866; by 1882 the surplus reached $145 million.{{sfn|Reeves 1975|pp=328β329}} Opinions varied on how to [[Balanced budget|balance the budget]]; the Democrats wished to lower [[tariff]]s, in order to reduce revenues and the cost of imported goods, while Republicans believed that high tariffs ensured high wages in manufacturing and mining. They preferred the government spend more on [[internal improvements]] and pensions for Civil War soldiers while reducing [[excise]] taxes.{{sfn|Reeves 1975|pp=328β329}} Bayard did not oppose some veterans' pensions, but worried that pensions would require continued high tariffs, which he opposed.{{sfn|Tansill 1946|p=300}} He supported the movement for a commission to examine the tariff and suggest improvements, but opposed the resulting [[Tariff of 1883]], which reduced tariffs by an average of 1.47%.{{sfnm|Tansill 1946||1pp=300β301, 308β309|Reeves 1975||2pp=334β335}} Congressional Republicans also sought to deplete the surplus through a Rivers and Harbors Act that increased spending on internal improvements; Bayard opposed the bill and was gratified when Arthur vetoed it against his own party's wishes.{{sfn|Tansill 1946|p=307}} Bayard and Arthur also agreed on the need for civil service reform. Garfield's assassination by a deranged office seeker amplified the public demand for civil service reform.{{sfn|Reeves 1975|pp=320β324}} Leaders of both parties, including Bayard, realized that they could attract the votes of reformers by turning against the [[spoils system]] and, by 1882, a bipartisan effort began in favor of reform.{{sfn|Reeves 1975|pp=320β324}} In 1880, Democratic Senator [[George H. Pendleton]] of Ohio introduced legislation that required selection of civil servants based on merit as determined by an [[Civil service examination|examination]], but the bill did not pass.{{sfn|Reeves 1975|pp=320β324}} After the 1882 congressional elections, in which Democrats campaigned successfully on the reform issue, the Pendleton bill was proposed again, and again Bayard supported it, saying that "the offices of this Government are created ... for the public service and not for the private use of incumbents."{{sfn|Tansill 1946|p=307}} The Senate approved the bill 38β5 and the House soon concurred by a vote of 155β47.{{sfn|Reeves 1975|pp=320β324}} Arthur signed the [[Pendleton Civil Service Reform Act]] into law on January 16, 1883.{{sfn|Reeves 1975|pp=320β324}}
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