New-York tribune., 1888-03-22
FRUITS or DEMOCRATIC POLICY


Stocks 90 lower, and wheat is lower, and
cotton is lower, and iron and wool arc weak.
Prices were not high when this downward
movement began; have not been relatively
high at any time this year. Money is not tight,
and no great pressure forces holders to throw
their properties overheard Neither is there
any great fear of financial collapse to induce
sales at sacrifice. The state of the markets
under such circumstances requires explanation,
and Democratic policies, Democratic imitation
of the currency and encouragement of extrav-
agant speculation, Democratic raids on indus
try through tariff agitation, offer the only ex-
planation that has yet been found to accord
with known facts.
All necessary information regarding the cx-
pansion of circulation by the Secretary Of the
Treasury has been given from time to time.
Details need not be repeated, nor is 1t peril
nent here to question the patriotic motives OF
the policy which the Secretary has chosen 10
pursue The fact is enough, that he has added
enormously to the circulation, and especially
to the most dangerous part of the circulating
medium the small silver notes, which remain
in circulation longest and operate most pow
erfully to influence local prices and to stimu-
late local speculation. In consequence. the
country has seen the most wonderful epidemic
of speculation ever witnessed since 1887. Tho
wild real estate speculation throughout the
country but especially at the West and South,
the desperate gambling in products OF all
kinds the creation of enormous manufacturing
establishments solely to prop up real estate
speculation the issue of new securities amount
ing to several hundred millions. in part to
hasten sales of land. and the tremendous effort
made for many months to raise the market for
securities and to keep it in such shape that
new securities offered could be marketed have
all attracted public attention and caused con-
servative business men to view the situation
with distrus.
OF late there has been an epidemic Of defal-
cation and Of failures scarcely less discredita-
Bile, resulting in nearly every case from the
speculative fever. If in some instances the
officials Of firms which have now been dragged
to ruin did not speculate themselves, as is said
Of the defaulting Treasurer Of the State of
Kentucky, it has appeared in many cases thus
far that the reckless speculations Of personal
or political friends, for whom defaulting Off
cials or failing firms had become responsible,
were the chief cause Of disaster.
Unsound speculation inevitably has it's reao-
ton. Nothing can be more certain in the
business world than this. The speculation in
wheat and cotton prevented the marketing OF
part Of the crops available, and consequently
there are on hand large stocks which prudent
bankers no longer like to accept as security for
loans Real estate booming at the South, and
the building OF new railroads on easily man
ufactured securities, have pushed the iron
manufacture to an expansion 20 great that the
first check caused shrinkagc Of 26 1-2 per
cent in the output since November 1. The
issue Of securities, at time when available
capital was largely absorbed in real estate
operations. has made the market for securities
heavy and practically helpless.
But all these influences might perhaps have
been successfully resisted by the tremendous
rccupcrative power Of the country, had not the
party in office seen fit, for purely partisan rea-
sons, to repeat It's annual assault upon tho
tariff with unprecedented energy. The at
tack not only arrested purchases in iron and
voollen trades, but brought disaster to pro-
find the prices lower than they can face with
hope of profits, and yet gradually sinking since
January l. All grades Of pig iron except the
best are slowly declining, and the collapse in
ore-producing regions has already brought
bankruptcy to many promising investments in
the Gogebic and some Southern districts, and
disaster in mining districts less distant. These
are fruits of policy distinctively Democratic
II the country wants q different policy, it will
have to intrnst the power to different party
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