Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1893-07-29
THE pANiC.cREATiNG TARIFF.
A Disturbing Element in the Natural Dis
tributiOn OF Wealth.


Execution has been taken to our
statement that the tariff is one OF the
causes Of the present condition OF
financial distrust. We think this is
easily demonstrable and must be taken
into account in any analysis OF the
situation. We look on the tariff and
the Sherman act as subordinate forces,
which have come in conjunction with u
larger and more potent cause to bring
about the existing condition. Neither
of them alone-probably both OF them
combined-would not have effected 1t;
not that either or all of them is not
vicious and debilitating in effect, but
because this is wonderfully productive
country, and can stand Immense DRAINS
Just as a vigorous young man can sus-
tain excesses without immediate I'M
| pairment of his vitality. The root OF
the evil is the speculative or boom
spirit which has ravaged the country
beginning in town sites and real estate
ercsvS n n anly ssaszzssl. t,elu y "a;
venture failed, turned into Industrial
stocks, in which the fever ran its co,irse
until the climax came and fictitious
prices shrunk TO actual values, possibly
below.
The tariff contributes to speculative
investments in being disturber OF the
distribution of wealth. 1t turns it out
. of its natural channels, and diverts IL
9 into special and narrower ones. 1t lays
it's exacting hand on the industries OF
4 the whole people, and takes portion
, without recompense and gives it to the
! few who are its real beneficiaries as
:. distinguished from its ostenslole ones
!. Among the latter are the farmers, the
n wage earners, the artisans engaged IN
!. carpentry, painting, blacksmithlng'
n masonry and kindred pursuits. In the
former are, in the main, the producers
"a of those materials which lie at the base
# of the great industries, the owners OF
IS the raw material and such OF the manu-
facturers as are able to corner produce
IL ton, and thus control prices.
We The inevitable result is the accumula'
a ton in such places of unearned wealth
ID restricted by the very nature OF It's ere
er alton from expanding the production
out of which it grows. Idle money Is
ar useless money. The universal law OF
~ creation compels it to seek investment
.r- Men having it are as eager for places
ot to plant it as is a farmer for ground II
es which to plant his corn or SOW MI
1t. wheat. 1t hunts planting ground
Ir. Legitimate business promises made
to quate return. Projects promising ex
in traordinary returns spring up IN an
~. swer to the demand for investments
ar CITY real estate takes on boom Wit
it rapidly advancing prices and increasln
for rents. Stocks and bonds feel the IN
or. pact of demand and advance. lnteres
he rates fall, stimulating in turn, speculs
,ad tive movement. Prices initiate, cred
are expands, like bubble blown from IN
,ne pipe. Suddenly something occurs, tn
vas bubble bursts, credit is fiat, securitlt
is a shrink, contraction brings bushes
Mr.. back to nearly a cash basis.
ow Inasmuch as the tariff serves to di
bev turb the naural distribution of weal'
, So and concentrate it in fewer hands,
to feeds the fame of speculation which
,rs" the greatest of the forces which ha
brought about the present conditio
! as and is the base of all financial panic
rn- CT paul Globe