Iron County register., 1893-07-20
THE PAN,c.cREATING TARIFF.
A Disturbing Element in the Natural Dis
tributinn OF Wealth.

A Disturbing Element in the Natural Dis.
tributinn 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 act as 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
combined-would not effected it;
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 ad-
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. 1t turns it out
of its natural channels, and diverts 1t
into special and narrower ones. 1t lays
its exacting hand on the industries OF
the whole people, and takes a portion
without recompense and gives it to the
few who are it's real beneiciaries as
distinguished from it's ostenslb1e ones.
Among the latter are the farmers, the
wage earners, the artisans engaged in
carpentry, painting, blacksmithing,
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 produc-
tion, and thus control prices.
The inevitab ble result is the accumula-
| tion in such places of unearned wealth
restricted by the very nature of it's cre-
alton from expanding the production
out of which it grows. Idle money is
useless money. The universal law OF
creation compels it to seek investment.
Men naVlnS IL are as eager 1oT pldces
| 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 boom with
rapidly advancing prices and increasing
rents. Stocks and bonds feel the i'm
| 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 a cash basis.
! Inasmuch as the tariff serves to dis
| turb the naural distribution of wealth
and concentrate it in fewer hands, it
feeds the flame of speculation which is
the greatest of the forces which have
| brought about the present condition,
| and is the base of all financial panics
st. Paul Globe.