Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1893-09-05
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While I think nothing h clearer than
| that The silver purohasing policy did not
cAuss the industrial distrust and couse-
ousnt deprsssion which began 70 dis
cIoss ITSELF Dear The beginning Of the
present year, and iucreased from month
to month, paving the way and even
originating the financial depression
whlch followed later, yet there ID strong
reason 70 believe that this purehasing
policy, at least the alarm abroad In con-
sequence Of the failure 70 maintain the
gold redemption fund which had been
drawn, by the substitution Of silver cor.
tiacates and treasury notes for gold In
customs payments, below the hundred
million mark that the law and public
opinion regarded - the danger line, did
render the situation moro serious BY
largely Withdrawing foreign capital from
this country, thus 90 reducing loanable
funds 40 to Increase the distrust Induced
by another cause, wreck credit, promote
boarding and bring about . money
famine Of unparalleled proportions. Al
the same time am confident that the
contributory share which the silver situ-
alton has had In the present difficulties
Il very much less than 10 generally sup
posed.
me Industrial depression which be-
gan to show itself near the beginning OF
tho year, was evidently caused solely by
the belief Of those engaged In manu-
featuring industries, that the result Of
the election 10 November, which had
placed the entire legislative, ~ well 40
executive power 10 the hands OF the
democratic party, portended an early
overthrow OF the policy Of protection, In
accordance with the democratic plat
form. Manufacturers and merchants,
therefore, at once began TO prepare for
what they believed would be radical
changes that would supplant domestic
with foreign goods. Enlargements con.
templated were given up. Dealers
orders for goods for another autumn
were given slowly and grudgingly.
Raw materials for goods to DO delivered
another season were bought sparingly
and prices gradually forced down.
For example, Michigan x wool, wash
ed, which sold last OctobcI for % cts,
was gradually forced down TO 20 cts,
because manufacturers expected to have
/ to cell their goods on the basis Of the con-
templated free wool tariff.
No actual change In the tariff has ~
yet been made, but manufacturers and
merchants have been preparing 10 adj
vance for the revolutionary changes
which the democratic platform portended
and have been dlscounting In part the
new tariff to come.
The dlstrust In manufacturing circles
which began In December and January,
extended late In the winter to financial
circles.
There can be no mlstaking the fact,
this Industrial dlstrust and consequent
industrial depression was caused entire
~ by the proposed revolution 10 the
tariff; although after this had gone on
for some months, the silver situation In
the way have suggested came In to aid
In lntensifying the distrust and convert
Industrial depression Into financial
panic and money famine.
Il 10 not possible to have q national
election, conducted on the Issue OF the
overthrow of an economic policy that
has prevailed for thirty years, and given
great prosperity to the country, result
In the complete triumph Of Q party
pledged to such q revolutionary change,
without arresting production, stopping
machinery, injuring credit and paralyz-
Ing business.
II must be borne In mind that modern
business, especially business In new
country, rich In resources like ours, In
wiling development, Il conducted large
ly, perhaps 90 per cent Of II, on credit |;
and that confidence Of men In each other,
confidence In the continuance OF the con-
diti0ns under which industries have
prospercd, 10 the basis of credit, essen-
tisl to induce men to Invest capital, and
the Inspiration OF production, exchange,
the employment Of labor, good wages
and business prosperity.
Whatever impairs this confidence and
promotes distrust arrests Investments,
wrecks credit, stops looms, puts out the
fires of FORCES, locks up money, depriyes
laborers Of employment, reduces wages
and brings the whole machinery Of busl-
ness to almost q standstill, Involving
millions In financial ruin and misfortune.
This was exactly what the election
last November did, In placing In COM
plete power o party pledged to over
throw our protective policy; and while
the present seuseiess panicky condition
OF the public mind and the money famine
caused by fright cannot long hold In
their present intensity, yet we shall con-
tinue to feel Industrial dlstrust and de-
preston at least until It shall be def
nitely known what kind of tariff the
democratic party will enact, and wages
and business shall adapt themselves TO
the changed conditions.