St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-14

to the treasury in a stream so much
larger III IN was the demand to use them
Tor paying taxes and duties, that the
gold reserve i'll the treasury began to
melt away rapidly. In three yers $780,
000,0O0 in gold was drawn out of the
treasury, and still the notes poured IN
for gold redemption. The people must
be taxed to buy more gold. or the notes
must be redeemed in, silver dollars.
which were worth in the worlds mar.
kets only about 60-l00 as much as were
gold dollars.
People holding securities that we're
not specifically payable in gold became
frightened and rushed in to realize on
them before the drop should come.
This FASTENED the crash. Indeed there
! is every reason to believe that our silver
buying policy would have brought on
financial panic" if no other evil had
been present to plague US. Unwise
currency legislation may easily bring on
financial panic" but it can never
cause general industrial depression.
Second - The Mckinley tariff. by
causing higher prices in many things
due to higher taxation, by so much
diminished the purchasing power OF
labor, while also lowering the demand
for labor, thus in two ways helping to
augment the industrial depression. OF
course, in those cases where the McKin-
ley bill gave lower duties, as on sugar,
the tendency was to stimulate industry
and help overcome the evils of higher
duties in other parts of the bill.
A third cause that hefped to IN
crease the Stagnation temporarily must
not be overlooked. Commerce and i'll
dustry had for years been burdened
with crushing load of taxation, Prices
OF goods had become adjusted to these
heavy taxes. In. November, 1892. the
Democratic party. pledged to abo lish
many of these burdens, were elected to
government. The people believed they
would carry out their pledge. If so. taxes
would be lowered and the prices of
many kinds of goods would be greatly
reduced. Under such circumstances no
one would lay in heavy stock of tariff
taxed goods, until tine party had acted
and its act had taken effect. ALI lines
Of industry affected by the tariff-im-
porters. manufacturers, wholesalers,
jobbers, retailcrs-from the largest city
establishment to the smallest crossroads
store, began to run low, 10 close cut
their stock SO as to have on hand as
little as possible when the drop in prices
should come. The business world was
ready for the change by the time the
victorious party took hold of the reins
of government. The quicker they acted
the better for all concerned. 1t is not
my purpose here TO criticiSe the course
OF that element i'll the congress who are
delaying action. If they desired to pro-
long and intensity the industrial agony,
they could not adopt surer method.
70 summarize then. The present
industrial depression" is wholly trace
able to the diminution of the normal
de,i and for products of labor, due:
First and foremost, to the constant
rise of laud and rents. This is the main
cause.
Second. to enormous unnecessary and
unjust taxation for silver buying and
other purposes, which further dimin-
ished the purchasing power Of the peo-
nle.
Third. to lowering of the normal
quantity of goods held in stock pending
the action of congress that should
lower duties, thus leaving business
stagnant while the stock was worked
off.
In addition to the industrial! depres.
siOn," and on top of it, we had
Financial panic" due to our silver
folly.
This "panic" was added to the one
that the industrial depression" caused
thus bringing two panics together-a
double dose of panic, as it were.
The next chapter will show how "in-
dustrial depressions" and those ''finan-
cial panics" that follow them can he
prevented. G. j. BUELL..