The advocate., 1894-02-14
PRESIDENTS LOUOEs ADDRESS.
Delivered at the National Council, F. A.
and I. u, at Topeka. February s, 1894.

shrinkage in values has been appalling. At no
period in our history as q nation have there
been so many idle people, now estimated at
100000, this the direct result of money
famine.
The position we have taken in the past, that
the financial question was paramount, has
been clearly vindicated by the union OF the
two great Numerically political parties in q
special session OF congress to try to settle that
question, the tariff being relegated to the rear
as of secondary Importance. Instead OF set
tling the financial question, they have simply
cleared the way for q settlement. The position
Of each political party has been so clearly de-
fined by its record in congress that no one ex-
cept the willfully blind partisan can fail to see
and know their intentions. True, the fight has
been made ON a minor phase Of the money
question, but our friends have kept the ad-
vanced, scientific solution well to the front all
through the discussion. Even metallic basis
advocates have been compelled to take .
broader view Of the question which inevitably
leads up to our position.
PERIODICAL PANICs.
One of the many ridiculous propositions
made to hoodwink the people Is "thatwe must
have these periodical panics because we al
ways have had them" Because" is about the
only reason they can give. deny that any
good valid reason can be given for periodical
panics during time Of great and general pro-
duction of wealth under just distribution
thereof For the ten years ending with 1890
the nation increased its wealth by the enorm-
GUS amount of $1S,OOO,OOOOOO, and because 1t did
we must suffer an unparalleled financial
crash. Nonsensel A farmer increases his
wealth $4,000 year annually for period OF
ten years. and "because" he does he must suf-
fer bankruptcy. Just "becausep The greater
the prosperity, the more certain is failure.
Current political economy leads to strange
conclusions. The present distress is world
wide. Just as severe in the nations that are
almost at a standstill in industrial progress as
in ours with its wonderful natural resources
and indomitable energy Just as severe in
free.trade England as in high-tariff Germany,
or the United States with our extreme protec-
tion.
Regardless of tariff laws 1t affects all gold
standard countries alike. Japan with free
coinage of silver passes through the crisis
without a tremor, while Indias trade Is para
lyzed through the closing Of the mints to free
coinage on private account increasing Its
hungry horde to 5OyOOOOOO, or about one-sixth
of its population.
The best "object lesson" however, is to be
found on our own continent, where tariff leg
islation is on much the same basis, viz: high
protective. In the north, Canada has high
protective tariff; we have higher, and Mex
leo to the south the highest Canada Is on a
gold basis, and although her banking system
is admitted to be better than ours she is pass
ing through a severe financial depression. The
number of our unemployed has increased to
oyer 100000, which, with their dependents
will bring the ratio in want here very close to
that of India. Mexico has free coinage Of sill
yer, and is reported quite prosperous. With
natural and acquired advantages overwhelm-
ingly In our favor we should lead the world in
prosperity. Tariff legislation Is not the cause
of the depression.
WHAT Is THE CAUSE.
These periodical panics are legitimate re-
suits of insufficient volume of money in ctrcu'
lation, compelling a vast credit system OF
doing business, and the attempt to pay Q
higher rate of interest than industry can
afford. During the special session OF congress
it was stated and not denied that the indeDt-
edness of our people, individual, municipal,
state and national, aggregated $SOOOOOOOOOC
The mere thought is appalling. How Is 1t to
be paid? The wealth of the nation is less than
S7OOOOOOO,OOO. When we made that immense
gain in wealth of S1SOOO,OOOOOO in ten years our
annual increase was only about per cent II
the average rate Of interest on our indebted
ness is only per cent. 1t would amount to
$21OOOOOOOO year. Suppose our annual in
crease Of wealth should continue at per cent
(which it is not doing) it would not pay the
inAnrnat nlnnn ON nnr dahf HOW can the nrln-