New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-28
THE CAUSES OF DEPRESSION.

r. begins to pinch. Industry and honest
business are disturbed in every part Of the coun-
try by the course which the Democratic party
has pursued and is pursuing Pleasant lotions
Of speculative "boomers" are giving place to
unvelcome realities For the four months
ending April 30 the actual business transacted
throughout the country was 10 per cent less
than IL was during the same months four years
ago. and in May the shrinkage Will be even
larger. A large number of iron and steel,
,yoollen knit goods and other manufacturing
establishments are standing idle. and many
thousand persons are out OF employment. EA-
cessiye speculation has kept In this country
large crops of staple products, so that nothing
short of a failure of crops amounting to ma
tonal disaster seems likely to lift prices to such
. mint that the short crops foreshadowed by
official reports will prove remunerative to the
farmers Crazy land speculation has swept
over the country, leaving behind it new mort
oooes which may be estimated at 81 100000
600 in amount; an enormous increase III the
paper circulation has occurred, ana now goid
begins to 60 abroad.
It is not possible to convince many Democrats
that these changes are the natural result OF
narty mistakes. The Democrat does not be-
Iieve that imitation of currency is harmful;
Republcans believe and practical business men
know that it is. He does not see how any
bodv il hurt by kindling the flames of the wild
est speculation practical men know thae III
Hated prices of real estate bring mischief ana
that vast accumulations Of unsold products put
our markets and therefore our producers at the
mercy of foreign buyers. 1t seemed TO the
Democrats mere frenzed partisanship for Re
publicans to criticise the Secretary OF the Treas
ury. when he was pouring out $50, OOO,OOO OF
currency in a few months, and making things
lively, in order TO carry elections in 1886. But
the men who then predicted the pinching reac-
ton which now appears were not In error IL
seemed to the Democrats nonsense to say that
a proposition to take off part OF the burden
which Expresses the people" could cause DIS
aster. But the army Of workers who look IN
vain for employment at closed mills and FUR
naces know that the consequences are pain
fully real to them. Initiation of currency and
tariff agitation have made disturbance. and
the country will have to make the best OF it,
A shrinkage in exchanges; what does 1t
mean? Week before last S118, 100000 less was
paid than in the corresponding week last year,
and in the end nearly the entire sum paid rep
resents labor employed and its wages. If the
products are not bought they cannot be sold,
and the men and women WHO would gladly
make more must wait. This year, taking the
transactions Of the first five months as test,
one-tenth less is paid out for things purchased
than was paid four years ago in the same
months, and that means difference of SO, OOO,-
600, 900 a year in payments Of all kinds. A
large part are speculative, it is true, but the
policy of the party in power stimulates specu-
lation, while it depresses industry. 1t shuts
manufactures in which thousands of Amer-
cans are employed, and sends gold to Europe to
pay for foreign products imported
The people who refused to believe that DEM
ocratic victory in 1884 would do harm were
not the wisest people on earth. This country
is of wonderful resources and growth. 1t can
stand more running than any other, and Its
misfortunes would appear the bliss of Paradise
to those who dwell continually under the blight
ing influence of theories which Democrats are
trying to apply here. The Nations marvel
lous vitality and recuperative power will doubt
less enable it to overcome obstacles and escape
disasters, but it will have to pay the cost of
Democratic msgoyernment all the sans.