St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-15
hi'KISLEY CALLED.
His Statements Punctared by a
Globe CORES Dondent

oh'oc
To the Editor of the GLOBE.
MIR. Mckinley says: That the COM
promise tariff OF 1888 produced the great
financial Crisis OF 1887. period of dis
tress almost equal to that which pre-
ceded the enactment OF the tariff OF
1924. They justly attributed the prevail.
ing distress to the tariff OF 1885 -
There was a period of dangerous
speculation that followed in few years
the reductions provided for in the tariff
OF 1888, but it arose from causes wholly
foreign 10 changes of the tariff. About
1880 the country catered again on pc
riod OF wild paper money. A large part
of the busine IS OF our state legislatures
was in passng bills incorporating
banks. Every hamlet all over the coun-
try had to have its bank. These bank,
were authorized to issue notes. By
1886 there were $50 banks CHAR
Tered, aod probably 500 of them were
or tile class known at 1he time as wild
cat or sand banks. The country went
mad over these banks. Their paper
bills became plentiful, prices of prop
erty rose out OF ali reason; speculation
not only reached the danger poiut, hut
It reached the point OF frenzy. The
tariff, high or low, protective or free
trade, had about as much to do with
this conditin" as the burning of our
forest fires. But every one thought he
was getting rlcn; eXtrayagauce In eX-
peiIuItures was seen on every hand.
Cheat schemes nf public works were
undertaken. One form of speculation
throughout the West that had most
favor was the purchase of public lands.
Every man who could raise a hundred
dollars rushed 10 the land Office and
entered an eighty. AS long as bank
redeemed its notes in specie they were
taken at the land office The land
sales were running up TO five million
month. The funds of the United
States treasury were removed from the
United States bank. and deposited with
pet state banks, which added to the
means and spirit of speeulatioH. Many
milllanS of treasury surplus were dis
trlbuted among the states, and this
money was largely squandered in the
most extravaganza ways Everything
added 10 the fierce fire. until the presi,
dent became alarmed, and in 1886 he
issued his famous specie circular, d!.
recting that only gold and silver should
he received i'll payment for public lands
VI.
says: That at the time the circular
was issued SlG,O00.OGO of the miserable
trash called money was Oh its way to
the land Offices to pay for Land. The
banks soon had to suspend. but the
country was still flooded With their
notes"
Mr.. Bddle. president of the United
States bank, said: In my judgment
the main Cause for the distress of the
country is the order requiring specie for
the payment of public lands" He also
said: That the United States bank
had not ceased to exist more than seven
months. and already the whole cur
rency aud exchange are running into
lneXiricabIe confusion. and the indus
try of the country is buraeued with eX-
travagant charges on all the commercial
Intercourse of the Union"
Daniel Webster, speaking at the same
time Oh the deplorabIe state of the cuun-
try. said: Il most devoutly wish to see
4 better state OF things. and [ believe
the repeal OF the treasury order weuld
tend to bring about that better state of
things. L greatly fear even that the
worst Is not yet. l look for severer dis
tress;" and continues, ''our condition is
not TO be tempered with, and the repeal
Ut the treasury order, being something
which government can do, and which
Will do good. the public voice is right in
demanding that repeal"
The merchants of New York, Phila.
delphia, Boston, Baltimore and the
commercial cities of the Union earnestly
prayed the assistance of congress in
saving the whole country from ruin.
They resolved that the chief cause of
the existing distress was the defeat OF
Mr. Gays bill and the removal of the
PUBLIC deposits. the refusal to recharter
the United States bank, and the lssu-
ing of the specie circulation.
is 1T possible that when Mr.. Mckin-
ley was speaking of the distress the
tariff OF 1888 brought OIL the country he
did not preceive that he was falsifying
history? The reduction OF the tariff of
1883 had no more 10 do, probably not as
much to do with the distress of the
country. as the increase of the tariff of
1916 had 10 do with the distress which
was general throughout the country
from 1916 to 1870. E. N. D.