St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-05-14
INDUSTRIAL DEPRESsloNs.
Written for the Globe.l
CHAPIERV v.
THE PRESENT DEPRESSION.

THE PRESENT DEPRESSION.
More than two years ago the seeds
we're sown that grew into the industrial
depression that eliminated III the panic
of 1898. We have seen how land BOOM
ing must always end III a business
smash-up. We have seen how the
high price of land exacts So large
tribute as to leave certain lines OF bus
mess Improbable, thus throwing en-
ployes out of work. We have seen
how these men through their enforced
economy diminish the demand for the
products of other laborerS ana thus
bring on acenStantly increasing depres-
sion due 10 the larger and larger mum.
Der of men out of work, until finally
the wheels OF industry, that have been
stop entirely.
Our present industrial depression is
no exception. Its primary cause was
in the land boom that ragged all over the
civilized world from 1880 to 1889 and
brought OH worldwide collapse.
In many countries there were other
causes that helped 10 intensity the
evil. In the Argentine the policy of
public loans on land had a strong
tendency to force up the price of land
far hey oud where it would have gone
had such policy never been adopted.
Thus was industry burdened with
heavier tribute to land monopoly.
In Australia it was the local banks Of
issue that, by freely lending on the
doubtful security of inflated values.
blew the bubble bigger still before it
burst. and Involved the country in
more universal RUN.
The only possible effect of an inflated
or Infiatable currency at such times is to
increase the evil by causing the price of
land to rise higher than it naturally
would.
So, in the United States, while the
main and quite sufficient cause of our
industrial depression is to be found in
the constantly growing tribute that
labor had to pay to land monopoly, yet
there were other causes that were added
to the main cause and helped augment
the result.
First-The Purchase of Silver-Be-
ginning at the close of February, 1878.
the United States government pur-
chased 80, 0O0, 900 worth of silver year
for about twelve and one-half years,
making about $500, 100000 worth OF sill
yer bought by the government under
the Bland Allison act. Then came the
Sherman act, that required the pur-
chase of 54,000,000 ounces a year. This
policy continued for over three years.
Altogether. then. there was purchased
about $3.50, 100000 worth of silver This
had to be paid for by taxing the Ameri-
can people. For this outlay we got
nothing IN exchange. The silver was
not needed for use, and no use was
made Of it. We were subjected to extra
expense to insure and guard it, ana
build the vaults to keep it in.
Every dollars worth of wealth taken
| from the people to buy this silver with
| by lust so much diminished their power
| to purchase the necessities and COM
| forts of life. and by that same amount
| augmented the general Industrial de-
| preston.
Ii you say this silver purchasing plan
| resulted in greater. volume of cur
| rency, / desire to point out that almost
none of the silver was ever used tor that
purpose. Paper notes we're issued which
were redeemed either in gold or by
being received for taxes. These notes
could have been issued just as we'll if
the silver had never been purchased.
| This silver buying scheme was swim
die on the people from beginning to end.
| 1t had not one single redeeming feature.
| In addition to the evils noted above
! the silver policy produced another grave
calamity. The notes given fer silver
became SO great in volume, they came