The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-08-28
THE CURSE OF CONTRACTION.

The announcement that Judge Martindale,
of the Indianapolis Journal, has been COM
PEELED to surrender his handsome estate and
90 into bankruptcy will excite the sym
pathies of a large numoer of his fellow citi-
zens and neIgbbors, without regard to party
affiliations. Such failure is calamity in
any community, and tells more elOquently
than words of the inroads the corroding
curse of contraction has made upon the
earnings of life time. Judge Martindale
has been regarded as one Of the most shrewd
business men of Indianapolis. His pur-
chases of real estate were large
and, with few exceptions, well located
handsome business blocks in the very heart
of the city, which ought to have maintained
their value, if such a thing were possible.
But the radical contraction policy made it
impossible and as a result property valued,
when it was mortgaged, at 1854 800 will not
now yield in cash Judge Martindale's ag-
gregate liabilities of $4,000 showing a
shrinkage of the enormous sum Of S439, 800
The property in question is now valued,
according to the statement rendered in the
bankrupt court at $503, 900, and even at
these figures, the shrinkage, since the mort
cages were made, amounts to SOL, 500.
Viewed from any standpoint Judge
Martindale's case is one of the sad
dest commentaries upon the. devil
ish financial policy of the radical
party that has been made in Indiana. While
this distraction of fortunes is going forward,
while mortgages are being foreclosed, while
business blocks and residences are passing
into the hands of banks and insurance COM
panies, while the bankrupt hearse and the
sherif7s hammer evidence the death of busi-
ness and the curse OF contraction, there are
those who are continually harping upon the
increased purchasing power of the dollar,
and Judge Martindale's estate gives lively
illustration of this wonderful power, when
mortgages to the extent of $685.
600 take property which, when the
mortgages were made, was valued
at s754, 500. The trouble with those who
harp upon the increased purchasing power
of money, as compared with the prosperous
times before the radical curse of contraction
wrought the ruin of the business of the
country, is that they state but one phase of
the proposition, for in proportion, as the
purchasing power of money has increased,
the opportunities to obtain money have de-
creased. If money were as plenty to-day as
when Judge Nartindale purchased his mag
nifcent estate, it is fair to assume there
would be no necessity for bankrupt court
to adjust his affairs. He would still be the
owner Of the magnificent blocks, his palatial
residence, and remain sole proprietor of the
Journal. 1t therefore matters precious little
to him what the present purchasing power
of money may be, since estate valued
at $5O3, 600 will not sell for 1915, 900 cash, the
amount of his liabilities. This miserable
chasing power argument, and comes down
from estates representing hundreds of thou
sands of dollars to the poor man who, by the
curse of the radical contraction and shrink
ing policy, can not purchase loaf of bread
He is told by the Shylocks that the purchas-
ing power of dollar has increased about
three fold" He may reply, Possibly; but
my opportunities to earn a dollar
have decreased a hundred fold. In
fact have no dollar at all.
Bread is cheap, know, but 1 can not earn q
dime wherewith to purchase it. Cohtrac-
ton has closed the industries of the country
and am forced into idleness." The lesson
is one Of terrible significance, and can not be
studied too closely. The time for bankrupt
petitions is drawing to a close, but failures
ara likely to continue until the democratic
party obtains full control of the government
and inaugurates an era of reform.