The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1893-08-31
REAL CAUSE OF pANIcs.

Industries dark picture of the havoc
caused by pernicious government
paternalism, under the gulse OF pro-
rectiye tariff, in Australia.
Mr.. Holt Justly holds that protective
tariffs. bounties, subsidies, silver pLr-
chase acts aud other forms of special
legislation and paternalisrn are the real
causes vf panics. They prepare a
country for periodical crises as surely
as the use of alcoholic stimulants
causes delirium trennens at more or
less regular Intervals. One artiictally
stimulates the physical, the other the
industrial system.
A recent number of the New York
Mail and Express contained the follow
ing picture of Australia, before and
after the operations Of high tariff
system:
"Perhaps the world has never seen
greater prosperity than was enjoyed in
Australia for more than two genera
tions. The virgin soil grew fortunes.
Gleami gold taken out OF the earth
enriched men who were beggars almost
when they landed on the hospitable
shores of the island continent. Indus
tries thrived as they never thrived be-
fore under the flag Of England. Com
merce became enormous In volume and
profits. Labor was dictator. Social
ism of peaceful sort dominated the
government. Today prosperity is
mourned as q beneficent guest who
has fled, leaving no hope of return.
Fields are fallow, factories are silent,
and people are Fastening to depart
from the country; labor is starving;
desolation broods over the markets;
the hungry ask for food, aud threaten
to resort to force"
Commenting upon the above Mr..
Holt says:
The Mail and Express being a good
Republican paper, does not attempt 20
tell us the cause Of the change. 1t is due
mainly to governmental paternalism.
Until ten OF twelve years ago the gov
ernment attended to its legitimate busi-
ness-protection to life and property.
The people worked and earned, and re-
ceived in profits, salaries and wages the
greater part of what they earned. All
prospered. Beggars and tramps were
unknown. Special legislation and ia
vored classes hardly existed, But Or
binary prosperity was too slow for some
of the proprietors of "lRfant Industries"
and they called upon the government
to assist them with tariffs and bounties.
1t yielded. Then labor organizations
put In their claims and obtained spec
ial legislation. Instead Of realizing that
they had to support the government, the
people imagined and expected that the
government should support them.
Since about two years ago, when New
South Wales adopted protection, each
of the mainland colonies has been
doubly barricaded with tariff walls.
AS the average population of these
colonies is only about one to each
square mile, Australia undoubtedly has
the most perfect system of protection
known. Business doomed in spors
after the government became a step
father to every industry, but declined
rapidly in most places, and, early this
year, collapsed. 1t Is difficult to realize
how complete this collapse really Is. A
correspondent from Melbourne says In
the New York Times of August TO-:
"The present depression in the United
States Is as q warning and cloudy
sky to terrific hurricane that Is passed
when compared with affairs over here"
He says, "the dwelling houses of Mel
bourn and the surrounding towns are
more than one third ito let Rents
have fallen over 60 per cent" "Mel-
bourne has splendid system Of cable
trains; the stock have fallen from $50
to 81 share.
Colonial tariffs and other paternal
laws have spread the craze for specu-
lating, gambling and sporting until
"every city has several race tracks, and
every village of 1000 inhabitants and
over has at least one race track"
EVERYBODY turns out to the races; "last
November, In O driving rain, $4,000
people attended one race, and at q low
estimate $6,000,000 changed hands that
day" Five years ago land boom
struck the colonies with the promise
of wealth without work" Cities were
built everywhere-on paper-and land
values became greatly inflated. In the
sweeping reaction they have dropped
far beneaCh their actual worth. "To
the gambling and speculative spirit of
the Australian must be charged the
commercial and financial disaster that
has overtakeu him."
There are two main reasons why pro-
lection and paternalism have not made
better showing In Australia. First,
the population was too small
and the infant industries too
weak and poorly established to
walk straight, after taking stimulants.
If the system had not been made so
perfect and had attempted to provide
blessings for the whole of Australia at
once instead of for each colony sepa-
rately, the crisis might have been post
poned for several years. Secondly, un-
like the United States, where the farm
ers and laborers are willing to be taxed
to enrich privileged class so that it
may build great factories, railroads and
mansions, there was no large body of
citizepsof Australia that was willing to
bleed itself for the benefit of other
bodies. Each and all scrambled to get
into the government trough. This is
what caused the trouble. When ninety
nine out of every hundred are willing
to pour feed into the trough, protection
is a good thiug-for the one on the in.
side; but when the ninety-nine get into
the trough and expect the one on the
outside to supply them with ample food
there is likely to be crisis. Invention
has not yet been carried far enough to
make the system work.
In marked contrast with the condi-
tion of tariff cursed Australia and af-
fording in itself the best proof that
A Ge Nha