New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-01
THE NATURE or BUSINESS DEPRESSION

TJJr VITTRE or BUSINESS DEPRESSION
v.or has posscd since the collapse OF in
dustrIcs and ~ business began. While Con
crcss Is closing the sixth month OF DEBATE VIII
ON, action. n look backward may be Instructive
Strictly speaking the trouble began more man
. veor ago for the decline Of a quarter In pay
mrnts through the clearing houses from 'he
first 70 the last week Of May 1893, was only
the outward symptom OF disease WHICH la"
,,,s,.d far months. The first difficulty was the
outgo Of gold In winter. which began NoNcin
hor o3 iust fifteen days after Mr.. Cleveland
was elected, and in December cxceed'" F'i'-
600 600 In spite Of Withdrawals OF foreign cap
iraI. the manufacture and distribution OF goouS
ordered for the spring continued OH " "''r'
scale But 1t was observed In the article vi
titled money and Business, In The tribune vi
April g. that mems goods for spring were nc
,,mu,otIng and on the 18th that sales of wool
I'm March had been very small, ana men
,vool,cns were dead" while in cotton goods
'thc business Of April had been rather ulSaP
ponting" On the oath there was n"uced Il
further decline In some grades OF cottohS nuu
"salcs of wool IN April IA quarter less IMAM ilS'
years" and OF wool manufacture III WAS SAM
"There begin 10 be complaints or scarcity OF
orders for tho future week later IL WIS
noticed that the consumption OF iron ana s'eel
fell far behind the capacity for production ana
that "salcs OF leather have also been light TOT
some weeks and new orders for boots ana
shoes are comparatively small" The eNhct
nature OF the breakdown was thus fore
Swallowed: Most of the textile works are now
fully employed though scanty orders threaten
70 close many before long" These accounts on
n shrinkagc in orders which had then continued
FOR weeks were written In April, month or
two before the panic.
In March. the month OF the Inauguration,
manufacturers began to complain that they
were not getting orders beyond the spring
trade The first woollcn mill to discharge
hands and close until the situation becomes
clearer did SO In May, but within another
month most OF the mills in the. country were
idle. Men said II was nothing but financial
furry. which would end ns soon as the Silver
bill was repealed. But the bill passed In Dc
tobcr when daily payments through all clear
ing houses were $155,OW,OOO, and now, after
seven months more have passed. they are Sl42,-
600 900 daily ut the end Of May. against $l87.-
600 OpO a year ago and $lSS,OOO,0OO the same
week I'm 1892 The exact difficulty was that
mon ceased TO give orders for the manufacture
~ goods. because they could not know what the
tariff would be half year later when the
goods could be delivered. and thus large part
az tbe industrial force was thrown out Of work
and wages.
In no one month since the collapse has the
actual consumption Of pig iron In nll branches
Of the manufacture reached 10000 TONS but
before the collapse year ago 1t was over $780,
600. In the year ending May !, 1893. the mills
took over 100000 900 pounds Of wool from the
three chief markets, averaging 100000 pounds
per week, but they are now taking little
over 100000 pounds per week, ana tho
same failurs Of eeasrs for tho nafnss