Middletown transcript., 1893-08-26
UNcERrAISr4 ABourTHETARIFF
The Cause of the Financial and
fnYnu,ereiaI T,r.oub1<. ~


The Cause of the Financial and
Commercial Trouble.
The following letter published in the
Morning Nei0s. gives some interesting sug-
,gestions along the line Of our present
difficulties.
WILMINGTON, Del, August 20, 1892
The Hon. ANTHONY HIeGINs.
DEAR SIR: understand you expect to
make speech in the Senate on the fnan-
cial and business troubles which the
country is now experiencing. 7 win give
you q text:
Confidence is the foundation of financial,
commercial and business prosperity; destroy
confidence and you sap the foundation Of
the whole structure The great and in-
creasing depression in the business Of the
country may be due in part Of the purchase
of silver by the government and to the.
change in the relative value of gold and
silver. This difference arises not so much
from the decentralization Of silver by other
nations as from the increased production
more silver being produced than the world
can use for the purposes for which it has
heretofore been employed. Think thatthe
repeal of the Sherman law and the refusal Of
Congress to increase the quantity of silver
coined 70 any great extent, will af-
ford some relief, but will not restore entire
confidence. y
Gold and silver are commodities, the
value of which depends ON the demand and
supply (the cost of production) as
much as that Of the other metals, or
wheat and corn-nations that we owe will
not take in payment our silver at price
above what it is worth in the markets of
the word.
The change In the relative value of the
two metals has produced financial crisis
which may make Unnecessary that there be
some legislation regulating The relative
amount Of these metals In the coin of the
country.
The trouble arises from want OF conf
dence on the part of capitalists, manufac.
turers and business men, in the ability and
integrity of the party in power, but pri-
marily from the fear that the protective
features of the tariff will be destroyed -as
the party in power and the President are
pledged to do-what confidence can capi-
taIists have in the financial ability Of men
who thought it necessary to give the country
''such an object lesson" as they have on the
silver question, or in the majority in Con-
gress to properly legislate for such emergen-
cies, of what confidence can manufacturers
and men employing labor have in u party
controlled by men whose aim has
been to create dissension between laborer
and his employer, telling the former that
be was being robbed BY his employer, whose
hands have been in his pockets up to the
elbow"
1.-THE duties on manufactures are reduced
in order to yield enough revenue, the vol
ume of imports must necessarily be in
creased. This, of course, means eorres-
poiidingly less consumption of articles
made in this country or a reduction in the
price in order to meet foreign competition
which can only be brought about by re-
duction in the, cost of labor, as labor is the
great element in the cost of all manusac-
turers. With the fear Of this reduction in
price and increased foreign competition,
prudent business men are not disposed to
large sseeks ef sssaateEalialls fefe
iron, cotton, wool. etc. or to pile up their
manufacturers in anticipation of future
orders.
II doubt there being any permanent inn
provement in business as long as the un-
certainty about the tariff exists, it being
the primary cause of the trouble.
Yours respectfully.
(Signedl GEORGE 6. LoBDELL.