River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1893-06-29
The Repeal of the asherman Act

We signed a petition the other day,
asking the President to call congress
together without delay, and to recon-
mend the repeal of the Sherman Act"
of 1890. We have been asked why we
signed this petition. This is cruel for we
do not know, except that our leading
business men had signed it and we found
ourselves in good company. We also
complied with the request of a good
friend who told us it was ''all right" in
signing it 1t seems to be taken for
granted that the repeal of the Sherman
Act will restore confidence and let up on
the present stringency in money matters
and consequently make better times. If
that be true we stand by our petition and
want the act repealed. That position
seems, however, little illogical. Under
the Sherman Act the government pur-
chases fifty-four million ounce Of silver
each year and issues in payment for it
silver certificates to the amount of the
commercial value of the bullion pur-
chased, which certificates pass as money
and are legal tender, and have been
and are now, convertible into gold. This
means the addition to our circulating
medium of about fifty million dollars per
annum. Repeal the Sherman Law with
out any substitute and it certainly means
that much less money placed in circula-
ton each year, and under ordinary cir
cumstances a contraction of the currency
would not be expected to relieve finan-
cial stringency. But it is claimed that
because of this much discussed law the
gold is leaving the country and that,
unless it is repealed, we will soon find
ourselves ON a silver basis, the result of
which would be that we would have to
buy gold at a premium to pay principal
and interest on municipal, state. railroad
and other Indebtedness represented by
bonds held abroad, as well as to settle
the balance of trade of late against this
country. Such a condition of affairs
would certainly be unfortunate for this
country. The news also comes to us that
India, heretofore ON free coinage"
basis as far as silver is concerned, has
abandoned that policy and adopted the
single "gold standard" of Europe. That
may offer an additional reason why this
country should fall into line and adopt
the same standard.
The democratic victory of last fall
means, if it means anything, that we
expect to be less self-reliant than former
ly, that we will be more dependent upon
the money centers of Europe and their
ideas of finance. five want to borrow
money from them. We must, like all hor
rowers, comply with their terms. In our
opinion the tariff lies at the bottom of
our present difficulties. The foreign
market is to be preferred. according to
the democratic idea, wherever it is the
cheapest, and they tell us it is the cheap
er all along the line. That means that
present investments in manufacturing in
this country must meet bedrock compe-
tition from abroad. 1t means further
that contemplated investments have been
Withdrawn, that money which, had the
republican party succeeded last fall,
would have sought investment in manu-
featuring in the United States, has gone
elsewhere. Perhaps it will be said that
the democratic party does not contem-
plate any such radical change as their
platform forecasts. This is probably true
The fact still remains, that the whole
commercial life of the Nation has, be-
cause of the political revolution of last
fall, been surrounded by an uncertainty,
which the repeal of the Sherman Act
alone will not remove. 1t may to some
extent restore confidence, but good
times" cannot be expected, until capital
is assured just what the policy of the
party in power will be on the subject of
the tariff. Even a moderate following
out of the principles of the democratic
platform means larger purchases abroad,
less production here, consequently larger
balances of trade against us to be settled
in cash, and that the drain of gold but
Just commenced will continue. Being
made dependent on the systems of Eu-
rope financially and industrially. it would
seem that the sooner we come to Europes
single gold standard the better. The
situation is but the logical result of the
late democratic victory.