The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-08-29
THE FINANCIAL DISTRESS.
From the speech of Hon. Nelson Dingley.
Jr., of Maine, in the House of Represen-
tatives, Aug. 70, 1898.

No one. said Mr.. Dingley, can have
| failed TO notice that in the debate on
the pending proposition to discontinue
\ tbe purchase of silver bullion, there has
| been a studious effort to create the i'm
| preston that this policy was inaugurated
| by the socalled Sherman act of 1890. The
| object is obvious. 1t is to fasten upon
| the Republicans who supported that act,
whatever responsibility the country may
place on the silver purchasing policy for
| the existing industrial and financial dis
tress
| Yet there is not a gentleman within
| the sound of my voice who does not
know that the silver purchasing policy
was inaugurated in 1878 over the veto of
President Hayes, and by the vote of
Democratic House and Republican Sen
| ate. three-fourths of the Democratic Sena-
| tors and Representatives voting to over
| ride the veto.
The act of 1890, styled the Sherman
| act, simply modified this policy, which
could not then be repealed, so as to di-
minish some of it's evils. Its passage,
| TOO, warded off free coinage measure
which had already passed the Senate by
a nearly solid Democratic vote, and which
would have received in the House all
but ~ of the Democratic votes. Very
| few of the Republicans who supported
the act of 1850 for these reasons would
| have voted for any original measure in
augurating the purchase of silver.
The vote on the pending bill, however,
in the House and Senate, will bring to
| the test the question of responsibility
| for the further continuance of the silver
| purchasing policy now that its actual
| workings are known; and the country can
| then accurately determine on what party
and what Senators and Representatives
the real responsibility rests.
In common with most Republicans on
this oor, / shall vote for the discon-
| tinuance of the silver purchasing policy
| inaugurated in 1875. and never intended
| to be permanent, not because | regard it
| principally responsible for the existing
| industrial and financial depression, al
| though I believe that it has secondarily
| contributed to increase troubles orig
mated by another cause,-but because
am convinced that this policy obstructs
| an international agreement on coinage
ratio. which ] hold is the only way in
| which silver can be given free coinage
| without driving gold out OF circulation
and bringing us to silver basis; ana
| because / regard 1t, Waste1ul ana perllous
| in the near future.
| NV desire for prompt discontinuance
| of this policy, is properly intensified
| by the fact that in view of the wide
| spread belief that it is potent factor IN
| promoting the distrust which has
| caused our troubles, repeal will be much
more influential tor good than otherwise
| it would bes because OF its influence on
| mems imaginations.
The discussion already has indicated a
| wide difference of opinion here and else
where as to how much Gf any influence
| our silver purchasing policy has had IN
| bringing about our present difficulties.
The President and that wing OF the
Democratic patry which adopts his views
on the currency question, hold tnat tn 1e,
cause of our troubles. On the other
hand that wing of the Democracy which
| believes in free silver coinage at the
ratio of 16 to i, holds that this purchas-
| ing policy has had nothing
| to do with bringing about the situation.
| They even assert that the last Demo-
| cratic platform which declared that the
shift and which demanded it's speedy
repeal, y was explained to them as mean
| ing that the act of 1850 was a cowardly
makeshiftn for the free coinage of silver
which would otherwise have been APP
poyed by both Houses of Congress, and
! that the platform was interpreted in free
coinage States as free coinage platform
While l think nothing is clearer than
| that the silver purchasing policy did not
cause the industrial distrust and conse-
ouent depression which began to disclose
| itself near the beginning of the present
year, and increased from month to
| month, paving the way and even origin
ating the financial depression which fol-
| lowed later; yet there is strong reason to
| believe that this purchasing policy, at
| least the alarm abroad in consequence of
| the failure to maintain the gold redenp-
| tion fund which had been drawn, by the
substitution of silver certificates and
| treasury notes for gold iii customs pay
ments, below the hundred million mark
| that the law and public opinion regarded
| as the danger line, did render the situa-
| tion more Serious by largely withdrawing
| foreign capital from this coutry, thus so
reducing loanable funds as to increase
| the distrust induced by another cause,
| wreck credit. promote hoading and bring
about money famine of unparalleled
| proportions. AT the same time am
| confident ClaU UQ6 snare
which the silver situation has had in the
present difficulties is very much less than
| is generally supposed.
The industrial depression which began
| to show itself near the beginning of the
wear, was evidently caused solely by the
belief of those engaged in manufacturing
| industries that the result OF the elections
| in November, which had placed the en-
| tire legislative, as well as executive power
| in the hands of the Democratic party,
portended an early overthrow of the,policy
| Of protection, in accordance with the
Democratic platform. Manufacturers
and merchants, therefore, at once began
| to prepare for what they believed would
be radical changes that wouldssupplant
domestic with foreige goods. Enlarge
| ments contemplated were given up
Dealers orders for goods for another au-
| tumn were given slowly and grudgingly
| Raw materials for goods to be delivered
| another season were bought sparingly and
prices gradually forced down.
For example, Michigan wool, washed,
which sold last October for % cents, was
gradually forced down to 20 cents, be-
cause manufacturers expected to have to
sell their goods on the basis of the con-
| templated free wool tariff.
| No casual change in the tariff has as
vet been made, but manufacturers and
| noarchants have been preparing in advance