The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1893-07-28

4 Disturbing Element In the NataSsl DID,
| tributi~a OF wealth.
Exception 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 net rs subordinate forces,
which have come in conjunction with =
larger and more potent cause TO bring
about the existing condition. Neither
of them alone-probably both of them
combincd-would not have effected il;
not that either or all of them is not
vicious and facilitating in effect, but
because this is a wonderfully productive
country. and can stand immense drains.
just as vigorous young man can sus-
tain excuses 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
everywhere, and, when that field Of adj
venture failed. turned into industrial
stocks, in which the fever ran its course
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. IL turns it out
of its natural channels, and diverts II
into special and narrower ones 1t lays
its cxacting hand on the industries Of
the whole people. and takes portion
without rccompense and gives it to the
few who are its real beneficiaries as
distinguished from its ostcnsible ones.
Among the latter are the farmers. the
wage earners. the artisans engaged in
carpentry, painting, blaclSsmithing,
masonry and kindred pursuits. In the
former are. in the main. the producers
Of those materials which lie at the base
Of the great industries. the owners of
the raw material and such of the manu-
facturers as are able to corner produce
ton, and thus control prices
The inevitable result is the accumula-
ton in such places of unearned wealth
restricted by the very nature Of its Gre
alton from expanding the production
out of which it grows Idle money is
useless money. The universal law OF
creation compcls it to seek investment.
Men having it are Us eager for places
TO plant it as is farmer for ground in
which to plant his corn or SOW his
wheat. 1t hunts planting ground.
Legitimate business promises made
quate return. Projects promising ex-
traordinary returns spring up in an
swer TO the demand for investments.
City real estate takes on a boom with
rapidly advancing prices and increasing
rents. Stocks and bonds feel the inn
pact of demand and advance. Interest
rates fall, stimulating. in turn, specula-
tive movement. Prices initiate. credit
expands, like bubble blown from the
pipe. Suddenly something occurs. the
bubble bursts. credit is fiat, securities
shrink. contraction brings business
back to nearly cash basis
lnasmuch as the tariff s~ves to dis
turb the paural distribution of wealth
and concentrate it in fewer hands, il
feeds the flame of speculation which is
the greatest Of the forces which have
brought about the present condition,
and is tho base of ell financial panicA
St Paul Globe.