New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-13
TILE CAUSE OF TROUBLE.

Once more even after all the experience or
tbe last wear n Democrat is found who gravey
insists that the panic of 1892 was due TO a Re
nublican law. the Silver Purchase act. Most
men of that party have had sense enough To be
convinced, by the continuance Of Industrial and
business troubles long after the Silver act had
been repealed. that the cause assigned by Pres-
dent Cleveland and his supporters was not the
real cause Of disaster. The banking or financial
panic ceased long before the silver purchasing
law had been repealed. The industrial prostra
ton. which was in large measure the cause
of banking and financial panic, has not yet
passed away In many respects business Is less
satisfactory than 1t was during the months OF
greatest financial disorder and strain. At that
time most people were willing to buy, and
actual consumption had not greatly diminished.
but trade between merchants and manufact-
urcrs was seriously Interrupted Now the facil
tiles for trade are entirely undisturbed. but con-
sumption has greatly diminished. The Interrupt
ton of exchange was temporary How long
the shrinkage Of consumption is to last depends
upon Democratic lawmakers.
The payments of all kinds through the Clear
ing Houses in different parts Of the country eX-
hibit only the general result Of this change
the decrease in all clearings was but 1916 per
cent and in August only $50 per cent. com
pared with the same months last year. But In
December It was 324, and in January $40 per
cent, and in February thus far the decrease has
been greater than in any previous month. There
was interruption Of credits and settlements last
summer rather than shrinkage of consumption.
So the railroad earnings, which depend in
measure upon traffic actually in progress, were
over So 100000 in August, the decrease com
pared with last year being - per cent, but fell
to $40 100000 In December. the decrease being
nearly IA per cent, and were only S34, j00,O 900
In January. the decrease being over II per cent
for the month, and in the last week Of the month
nearly IL per cent.
These indications Of n general character are
sustained by records Of different Industries. The
weekly output of pig iron was actually larger
August I, when the panic was at Its height and
when great strikes were also arresting work In
many establishments. than it was February /.
and the decrease in comparison with last year
was about 81 per cent In August, but In Febru-
airy about 10 per cent. Fluctuations usual to the
seasons affected the manufactures Of woollens
and OF boots and shoes in midsummer, and
would naturally have made the output Of iron
hundreds Of mills and factories were closed be-
cause they could not get currency with which
to pay hands. there was more buying from re-
tailers and more disposition to buy by mer-
chants than there is now. Thus it comes to
pass that prices OF almost all products are lower
than IN the worst month OF the panic wheat
has gone lower, textile goods are all lower, and
iron and steel products are much lower.
All these things point to the fact that the
arrest Of industry last summer was supposed
to be temporary. and workngmen expected
soon To be earning their old wages, and there
fore did not change their habits Of living IL they
had credit or money saved. But now the wages
OF those employed have been reduced very gen
orally. while n great proportion OF the working
force has been long unemployed that the
debts or savings have been exhausted or much
reduced hopes of speedy return to prosperity
have grown dim, and families have set them
selves TO cconomze. The shadow Of the threat
encd change Is over nll Industry and NIL
branches of trade. Men are beginning to realize
what Democratic 1" freedom OF competition and
less restricted trade" actually mean, md that
British wages will not support tho consumption
to which Americans have been accustomed