Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1885-04-10
CURRENCY AND TARIFF.
THEIR INFLUENCE UPON business
PROSPERITY.

The two most Important lneasuies
about which Congress has power tC
legslate, affecting the business
prosperity of the country, are the
tariff and the currency. Business
as general rule, lie largely based
upon the currency. Anything
which affects the volume OF the
currency would of course affect
business prosperity. Contraction
in the volume of currency causes Q
shrinkage Of prices, makes money
more scarce aud difficult to be had
and causes widespread bankruptcies
among business men who are ID
debt. The contraction of the
volume of currency which took
place between the years 1868 aud
1873 caused the panic of 1883 and
the hard times which followed. In
1878 the number of bankruptcies
in the country reached 10000. A
bill passed by Congress in May OF
that year stopping further destruc
tion of grcenbacks brought relief
Business revived, and the country
was generally prosperous until
1882. The agitation OF the tariff
question which has occurred since
then has brought on business de-
pre-. sion again. During the year
1884 the bankruptcies in this coun
try reached over H., 900.
There are now in the United
States about 3O0,0O0 manufacture
ing establishments, giving en-
ployment to nearly 100000 OF
people. Any reduction OF duties
on foreign imports materially affects
the prosperity of every one of these
manufacturing interests. In loS-
Congress appointed a tariff com
mission which travelled all oyel
the country, making Investigations
in regard to different industries
and the influence of the tariff upon
them. \ bill was passed in March
1883, making general reduction
Of duties on foreign goods. The
mere agitation Of the question had
disastrous influence upon the
manufacturing industries, even be
fore the bill passed. The reduction
of duties caused a shrinkage in the
price of all manufactured products.
This destroyed confidence among
our manufactures and among those
dealing in manufactured products.
The results Of this Of course caused
widespread depression of the bust
ness interests of the country. III
has caused manufactures to dis
charge a large number of their en-
plnyes, and to reduce the wages OF
those still in their employ, and to
curtail their expenses in every way
they could, III order to keep their
business running. The depression
of business that has been brought
about has affected unfayorably
every industry of this country
manufacturing, mining, mechanl'
cal and agricultural. There has
been reduction Of wages amount
inc to from 10 to 30 per cent. in
the different Industries. This OF
course takes "a large amount OF
money out of the hands of the
working class that is weekly spent
in our market. The laborer who
gets $40 a week usually spends the
most of that amount before the end
of the succeeding week. If hi'
wages are cut down to SO per week,
and one third of those employed in
the factories are turned out Of EN-
ployment, it takes millions o
! dollars out of the hands of the trad
inc classes that would otherwise
/ be in circulation with our markets
/ Ii has II direct tendercy to ARE s.
consumption, as we'll asproductlon
lis estimated that the losses en-
tailed upon this country owing tC
the contraction Of the currency
which took place between 1868 anC
1873 amounted to thousands o
millions of dollars, and when WI
take into consideration the shrink
age in the value of real estate ant
personal property, it amounted u
tens of thousands of millions. Th'
bsses entailed upon the country as
= result of the reduction of duties
which took place between tho year
1852 and 1884, will also amount Il
thousands of millions of dollars
and the sbrinkage in the price
Of real estate and persona
property to the thousands of mil
lions more. The depreciation II
stocks and bonds alone equals
thousand millions. The shrinkag'
of values tends to destroy conf
dence among business men, and
thus will produce business depres
sion. Nothing will do this so effect
ually as a reduction of the volum'
of currency and a reduction O
duties on foreign imports.
A protective tariff is designed t
encourage capitalists to invest thei
money in manufacturing enterprise
in this country, and To give ne'
and greater employment to th
laborers OF the country and to Civ
them better wages. A reductio
of duties of course is made in Oh
interests of foreign manufactures
importers and traders. There ar
plenty of facts that go to sho'
u.o. ,xion a nrotective eystem