The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-01-31


Isle in his able and exhaustive report TO
congresses:
Money does not create business. but
business creates a demand for money.
Hamilton truly said that
The revenues of government must
always be proportional in a great degree
70 the quantity Of money in circulation
ana 70 the CELEBRITY with which II circu-
Those who attribute our repeated depres-
sions TO our monetary system, in my Judg-
menL mistake effect FOR cause. However
great may be the volume OF money. II IS
out an instrument in facilitating trade ana
commerce, and IL alone cannot force eX-
! changes when other conditions are Un-
| friendly or wanting II a mere contraction
] OF the circulation medium OF country
\ has tendency TO paralyZe business, what
\ must be the influence of restrictive sys-
/ TEN which Furnishes the great body Of
/ consumers with penalties ranging from %
/ 10 800 per cent?
The restraints we have placed upon trade
are the primary cause OF our present con-
dition. They impede exchange, reduce con-
/ sumption, and thereby I'll the domestic
/ market with an oversupply, TO be followed
/ by the closing of mills and loss Of en-
ployment TO labor, forcing a reduced con-
| sumption and breakdown In the market
] Money is fearless in prosperity, but cow
! ardly in adversely, and seeing the crash
! that is likely TO come takes fright and
/ runs TO cover, leaving trade and commerce
I helpless. Following such periods and they
! have become so common with US that we
are in n constant state of anticipation and
! fear, the whole trouble is charged to an
! insuthciency Of circulation, TO q want or
money.
An abnormal fall in prices must neces-
! sarily accompany such a condition, which
IS at once accepted as conclusive proof that
money Is not only scarce, but has greatly
appreciated in value. Our trouble is in the
system and not upon the surface, and a
healthy condition cannot be restored by
mere applications to the eruption We
might recover more easily from these peri
odical depressiOns were il not that our
commercial and financial relations have be-
come so intimately interviewer with those
rnrp1a ar
those Of Great Britain. az TO seriously az
feet the rate OF exchange in the settlement
of balances, and thereby cause large eN-
portatlons Of gold, which serve TO increase
the alarm and intensity the disaster, TO
no other one cause can the demorailzed
condition OF business. trade, ana finances
be attributed more than 10 governmental
interference with natural laws
Shortly after the passage OF the act OF
1890 the fact was eXutingly announced
that the hosiery mills OF Austria which
had partially supplied us with goods, had
been forced by the increased duties 10
close, and that their labor was out OF en-
ployment Without deigning 70 comment
upon the heartless cruelty of such an argu-
ment 10 what conclusion does II lneVltably
! lead? Did il necessarily follow that be
cause we had inflicted a loss upon them
that we were gamers: that their loss was
our profit; that their suffering was our
pleasure
It is to such absurdities. and 10 such
alone. that the doctrine Of protection leads.
While the discharged operatives OF the
Austrian mills were suffering for food, the
families Of many of the farmers upon tie
bleak plains Of Kansas, Nebraska and the
Dakotas no doubt were suffering during
the chilling blasts Of winter for the want
| OF a sufficient supply or cheap WOODEN
clothing. The operatives OF the wooden
| mills OF Austria were forced 10 exist upon
the scant support OF charity. while the
| farmers Of Kansas and Nebraska were
compelled TO burn their corn 20 keep from
! freezing. A great wall had been built be-
tween them.
II NAV be asked. why did not the farmers
| purchase ali the clothing they needed in
| The home market Simply because they
could not ssh their products nj home, and
Therefore had nothing with which 70 make
| the purchase. --ls-.s
Home Market Not Enlarged.
The belief that the home demand is en-
| larged by the exclusion Of the foreign
| product which the gentleman from Maine
! CIr Dingley) 50 earnestly pressed, is a
1 fatal mistake, and is cOnrroverted by the
/ statistics preceding and following every
/ reduction Of duties that was ever made.
| No surer test Of a coun try's prosperity or
| the absence of il can be found than in the
! rise and fall of It's imports and exports;
] and whenever these are DISTRACTED or pro
! hibited II is a blow at the prosperity Of
/ the citizens OF both and not simply 70 those
| Of one.
Mr. Chairman. there is one important
| consideration of which We should not lose
| sight Of I'm this argument, and that is,
| the changed conditions which have taken
! place within the last twenty-five years.
| We're more numerous, and scattered over
| a greater area; crude methods were used
! in comparison with the process Of today.
! The small manufactures and the small
| dealer have been driven out OF business.
| Production has been massed in the great
/ centers and concentrated in the hands OF
| q few The firm of Carnegie PhiDOs e
/ CO. employ more than 1900 hands. Forty
! two per cent OF our population today re-
ward.
The population in the rural districts. in
! many of the middle and western states
| has diminished within the last ten years
| While the cost of production has been
! greatly reduced the necessity and import
| ance Of distribution has been greatly in
| creased The labor massed I'm our large
| cities is not as independent as when EN-
| plOyed in smaller Industries scattered over
| the country. II is a well recognized fact
! that the great mass Of the workingmen
| employed IN our large industries save but
! little, the majority barely keeping even.
| The great expense to which the manu-
| facturers are subjected in their opera lions
| by reason OF the magnitude Of their plants
and large number of employees make II
| absolutely necessary that they should have
! q stable market and not an uncertain or
| huctuaung one. They cannot run for any
| length OF time without a market for Their
| products Overproduction under such cir
! cumstances is fatal TO operatives The in
| dustry must close down and the laborers
| remain Idle till the surplus is consumed.
| A knowledge OF this fact has resulted IN
| the formation OF trusts and combinations
| TO limit production and regulate prices ai
| which sales shall be made. Jobbers are
| no longer able to obtain stocks without
| putting up a forfeit and executing an
| agreement with severe penalties. not %
| sell below fixed prices. BY this means the
| combines are able to pay handsome divi-
! dends TO the owners OF great plants which
| are kept closed. The consumers Of the
| country are today paying interest on idle
! capital invested in plants for which there
was no demand under the stimulus OF high
! The bin under consideration had scarcely
| been made public when the fact was an
| nounced that the window glass combine
| had gone 10 pieces and that the iobbers
! We're demanding a return of the $500 for
| felt which they had been compelled to de-
| post before they could obtain stocks. The
| modern plant in the gas belt. where the
| cost OF production is much less than I'm
old-style establishments, forcing consum-
ers to pay fat dividends for antiQuated
! methods. Under such a condition the min
| ority Of the committee IN their report,
| say to us, The consumer will take care
| of himself if YOU will look after the pro-
| producer and he will take care OF the con-
sumner.
own you walk into my parlor?' said the
| spider to the fly.
VIII smash Trusts.
| II the proposed measure shall have no
| other effect than TO break UP these un-
! lawful consplracies against the interests
! OF the people and center production in the
| most favorable localities. IL will have ac-
| complished a great ana benefcent work.
/ It is contended, however, that wages are
! higher in this than in any other country
| and that a reduction of The tariff means a
| ,-a3itcfion Of II / had the fainteef