The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1894-02-16
CAUSES OF THE PANIC.

voter VINO desir, to exercise the right
of suffrage jntcligently and with a view
ri doing what he can to correct the
political evils, that have afflicted this
country.
When President Cleveland surren-
dered his Office on March 4th, 1880,
there was surplus in the United
States Treasury of upwards of one
hundred millions of dollars. The
question which confronted the admin
istration of President Harrison upon
its advent to power, was, what shall be
done with the surplus ? Secretary
Blaine and other prominent Repub'i.
cans favored a distribution among the
several States. But this device was
abandoned and the Reed Congress of
$4,000 adopted the plan of increas-
ing appropriations for public buildings
and other expenditures not immediate
ly necessary, under which contracts
were entered into by the Government,
that require continuous appropriations
of many millions of dollars in excess
of the ordinary expenditures. This
reckless extravaganza has caused that
body to bear the odious s0briquet of
the Billion Dollar Congress. While
the surplus left in the Treasury by
Mr.. Cleveland's first administration
was thus wiped out by the Reed Con-
gress, to make assurance doubly sure
that no surplus should again accumu-
late, the same body enacted what is
known as the Mckinley tariff law
While this act placed sugar on the
free list, and gave the sugar producers
a bounty that averages about ten mil
lions of dollars per annum, thus de-
priving the Government of an annual
revenue of some seventy millions Of
dollars, and adding ten millions to its
annual liabilities, it imposed such
enormous duties on other articles as
to prevent importations in some in
stances and to induce undervaluations
and smuggling, all of which operated
to reduce the revenues to point far
below the actual necessities of the
Government. Meanwhile the absurd
and mischievous SHERMAN Act" which
required that the Government should
pay..out $4,5oo,ooo per month in the
purchase of silver bullion, imposed a
burden upon the Government that il
was scarcely able to bear during the
last months of the Harrison admins
trstion. The consequence was, that
the foreign holders of United States
securities, cognizant of the fact that
the revenues Of our Government were
falling short many millions of dollars
of its actual requirements, became
alarmed and drew upon this country
for gold by throwing their holdings of
United States securities upon our mar
ket. The outflow of gold thus induced
had the effect of producing stringen,
cy in the money market, which was
followed by loss of confidence ip
banking institutions, which were In
turn obliged to call in their loans or
close their doors, and the end of it all
was a stoppage of the wheels of in,
dustry and business.
Such was the condition which con-
fronted the administration, of Mr..
Cleveland when he assumed the reins
of power on March 4, 1893. The
new President was obliged to call
Congress together in extra session in
order to provide ways and means to
avert the disaster which threatened the
country. At Mr.. Cleveland's sugges
ton Congress repealed the Sherman
Act" and at once confidence in the
banks was restored and many of those
institutions which had suspended, re-
sumed operations. Money again be-
came abundant in the great financial
centres and now awaits distribution
throughout the country through the
marketing of products of farm and
mill and factory. The passage of the
Wilson tariff bill by the House of
Representatives has already given a
great impetus to manufactures. Mills
and factories that have been idle since
last Spring are now starting up and
the number of the unemployed grows
smaller day by day. When free raw
for the manufacturers and
cheaper necessaries of life for The
shall have been assured
by the passage of the Wilson tariff bill
in the Senate, an era in activity in
production and trade will surely set in
which will prove to be one of sub
stantial and enduring prosperity.
The salient points to be remembered
and reflected upon by the intelligent
voter, therefore, are
I. President Cleveland left the
Treasury eoith a surplus ecceeding
One Hundred Millions OF Dollars
'chen he surrendered office on March
4, 1850.
?. Ee- President Harrison, oaoing
to the hurTul legislation of the Reed