Middletown transcript., 1893-07-15
FINANCIAL
STRINGENCY
is IT DUE TO THE SHERMAN LAW
OR THE TARIFF THREATq
VAN BUREN, DENSLOW SPEAKS
And Enters Into Lengthy Discussion
in the s'Independent''-A True
Statement of the Case.

t Stock Exchange in which it shows that
] during the year preceding June 18th, 1893,
there has been decline in value of
$7O4, ,O00, ,6O6, or about ten per cent. Similar
i figures have appeared in the New York
World. The Herald also estimates a de-
cline in value of this years wheat crop
relatively to last years of twenty cents per
bushel, or s10O, 100000; on our corn crop
also one of s160, 900 900. and in pig iron, of
81 per ton, or say $4,000, 900. To make the
figures as startling as may be desired, let
us assume that within year past shrink
age on all the values in the country has
occurred often per cent. or say s., 500 000, ,000
Upon this basis the Herald and World
say: Behold the cost of the Sherman
Law" and make this estimate the piece de
resistance of a bombardment Of that
| statute. The Sherman Law was passed
July 14th, 1890, one year and eleven months
before the beginning of the period in which
| the shrinkage is said to have occurred
Although full year is assigned for the
period of shrir kage, yet in fact no part of
it occurred within the first four months of
| the year or until November 10th, 1892.
Prices of commodities fell and rose, but
values of reproductive property remained
full or rising from July 18th, 1890. to No
Vember Sth, 1898. Hence, in fact, the Sher
man Law produced no shrinkage of values
| until two years and four months after its
enactment.
On November sth. 1892, occurred com
plete overturn of parties in the United
States, whereby the men, measures and
principles which, for thirty-two years, had
been uninterruptedly at the top went to the
bottom, and a snbjugated political party, a
war-suppressed sectional confederacy and
an assortment of Southern plantation prin
ciples not closely identified with the welfare
Of the more complex and powerful indus
tries came to the top.
A gentleman not enlisted in political
work, COL Robert G.. Ingersoll, had pre-
dicted, in an interview in The Press, early
in the summer of 1892, that such political
overturning as actually occurred in the
November following, would impair the
value of property in the country within
one year by four thousand millions of dol.
lars, or by nearly the amount by which it
is now assumed to have been impaired.
The interesting question, the supreme
issue indeed. is, what has been the true
cause of this impairment of values? Is it
due to the general political overturn which
occurred last November or to the passage
of the Sherman Law, two years and four
months earlier2
After the passage of the Sherman Law
there was at first an upward turn for about |
two months, in the prices of silver and |
wheat silver going up to about 55 pence |
per ounce and wheat to $f.08 per bushel |
Stocks and bonds also showed no sign Of
shinkage until after the law had stood two
years and four months.
On the election of Mr.. Cleveland, how
ever, with both branches of Congress COM
mitteed to freer importation of competing
goods, there was no lingering. The symp
toms came quick aud sharp, like the click
of rihes from an ambush, followed instantly |
by the fash and the flying missile.
The New York Tribune of November
18th, the fourth day after election, con-
tanned four kilograms of industrial collapse,
one from Pittsfeld. Mass. one from Neenah,
Wis, one from Elgin, ILL.,. and one from
Reading. Penn, all ascribed on their face to
the vote on election day. At Pittsfield, E.
D. Jones' Sons & Co. received notice can
ceiling an order for $500, 900 paper mill in
New York State. At Neenah, c. w.
Howard abandoned the intended erec-
tion of paper mill which would have cost
$SO,000. Near Elgin. the Illinois Iron and
Bolt Company desisted from series of ad-
ditions designed to add one-half to their
output. Near Reading, Penn, the Phoenix
Iron Works took off the night turn from
two mills, and reduced the force all over
the works from the Monday next following
the election. In the same week Hermann,
Aukam q Co., of South River, N. T., manu-
facturers of handkershiefs, notified their
600 employees that their works would shut
down on December 1st until the tariff
policy, which was to result from the election,
could be known. On Wednesday, instantly
upon the result of the election being
known, Baltimore buyer had cancelled
$4,000 order for Ohio wool, On the same
day King, Gilbert & Co., of Middleport, O.,
had received, among others. single order
canceling previous order for 100000
pounds of steel, and announced general
reduction of wages. On November 22d,
two weeks after the election, the Illinois
Steel Company, employing $500 skilled
and unskiled laborers, announced that, on
account of the uncertainties in the tariff
developed by the election, they would Shut
down on December 18th. On November
30th the Enterprise Company, employing
500 hands, and the Stone City Bank, of
Joliet, failed, with deposits of $500, 1000.
From that time to the present each week
has recorded some new catastrophe or col
lapse indicative of spreading distrust and
failing pGwers to produce and pay until
now the prominant failures are dozen or
'core daily. Borrowers worth millions
acknowledge that the cramp is on, and that
hey cannot easily borrow on the most
silt-edged security.
In the four months foliowi ng January Is
1893, the United States incurred an adverse ]
balance of trade, to the extent of S55, ,OOO,-
49, by importing more than it could pay
or liz commodities and securities, and hence
coming. under a commercial necessity, of {
exporting coin Of some Kind in payment :
m the same quarter of the previous year I
he balance of trade was in our favor by
Utmost exactly the same sum, although the [
sherman Law had been in operation for
'ear and half. /