The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1894-03-17
Causes of Business Depression.

Causes of Business Depression.
Philadelphia Record.
The tariff panic-mongers receiv-
ed small encouragement from the
last annual report of Commissions
er Thomas j. Bowling, of the New
York Bureau of Labor Statistics.
In order to fully and impartially
investigate the causes of last years
business depression the Commits
sioner addressed circulars to all
the manufacturers known to him
in the State, asking whether they
had wholly or partially closed their
establishments, whether they had
reduced wages, and to what, in
their view, is the panic of 1898 to
be attributed.
To these questions 2011 manu-
facturers sent replies, and 40 of
them declared that they had not
been affected in the least by the
business depression. Establish
ments to the number of 6lS were
closed from a week to eight months
the average time of closing having
been Al days. Of the 2O11 factories
from which the returns are given
81 are still closed, of which 3S are
engaged in the manufacturer of
clothing. This industry appears to
have been affected more severely
than any other by the panic, the
reduction of wages in it having
ranged from to 66s per cent. An
obvious cause of this is in the fact
that in times Of depression the
masses of consumers wear their
old clothes as long as possible.
When the active demand is check
ed in nation of 65,O0O,0OO people
an enormous quantity of wearing
apparel is left in the warehouses
of manufacturers and dealers, and
the distress of workers in this in.
dustry becomes inevitable.
Statistics of this kind are neces-
sarily imperfect, as answers are re-
ceived from only limited number
of manufacturers from whom in
formation is sought. But the chief
value of this report consists in the
eviden ce it furnishes concerning
the true cause of last years panic.
A large proportion of the esta b.
lishments reported were obligeded
to close empo.arily for a want OF
funds to meet current engage
ments. While orders were abund.
ant and credit good, nothing stood
in the way of continued operations
but the refusal of the banks to
further discount business paper.
Without ready money to pay wages
there was nothing for it but to
close the doors. Only asmall numb.
er of the manufacturers making
report mention the tariff. While
some say the Wilson bill will cause
a reduction of wages, others hold
quite different opinion. Most Of
the manufacturers desire that the
question shall be settled "one way
or the other" in order that indust.
ries may be relieved of the uncer'
tanties that are so disastrous t.
trade.
This report in its entirety brings
fresh proof of the fact, if such proc
had been needed, that the cause,
of last summers panic were in the
monetary legislation that culmi
mated in the Silver Purchase act o
of 1890. The distrust created by {
continuous weakening of the basis
of currency produced general re
striction of credits, and thus com
PEELED many manufacturers de
pending on the usual line of dis
counts to close their doors. By re
fusing for months to repeal the
Sherman act the Senate delayed
the restoration OF confidence and
deepened the business depression
Tariff revision neither caused mol
contributed in any substantial de
gree to the panic; and nothing now
opposes return to prosperity bu
the uncertainties which surround
the Wilson bill in the Senate.
II Tho nutv NJ tho Nnrfh