The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1894-03-03
Causes of the Panic.


hundred millions of dollars. The
question which confronted the ad-
ministration of President Harrison
upon its advent to power was, what
shall be done with the surplus? Sec
rotary Blaine and other prominent
Republicans favored a distribution
among the several States. But this
device was abandoned and the Reed
Congress of lS8990 adopted the plan
of increasing appropriations for pub
lie buildings and other expenditures
not Immediately necessary, under
which contracts were entered into by
the Government, that require contin-
uous appropriations of many millions
Of dollars in excess of the ordinary
expenditures. This reckless extrav-
agance has caused that body to bear
the odious sobriquet of the Billion
Dollar Congress- While the surplus
left in the Treasury by Mr.. Cleve-
lands first administration was thus
wiped out by the Reed Congress, to
make assurance doubly sure that no
surplus should again accumulate,
the same body enacted what is known
as the Mckinley tariff law. While
this act placed sugar on the free list,
and gave the sugar producers boun
ty that averages about ten millions
of dollars per annum, thus depriving
the Government of an annual reye-
nue. of some seventy millions of dol
lars, and adding ten millions to it's
annual liabilities, it imposed such
enormous duties on other articles as
to prevent importations in some in
stances and TO ind nce undervalua-
tions and smuggling, all of which
operated to reduce the revenues to a
point far below the actual necessities
of the Government. Meanwhile, the
absurd and mischievous SHERMAN
Act which required that the Gov
eminent should pay out $4,500,000
per month in the purchase of silver
bullion, imposed a burden upon the
Government that it was scarcely able
to bear during the last months of the
Harrison administration. Foreign
holders of United States securities,
cognizant of the fact that the reve-
nues of our Government were falling
short many millions of dollars of its
actual requirements, became alarmed
and drew upon this country for gold
by throwing their holdings of United
States securities upon our market.
The outflow of gold thus induced had
the effect of producing stringency
in the money market, which was fol-
lowed by loss of confidence in bank
ing institutions, which were in turn
obliged to call in their loans, and the
end of it all was stoppage of the
wheels of industry and business.
Such was the condition which con-
fronted the administration of Mr..
Cleveland when it assumed the reins
of power on March 4th, 1898. The
new President was obliged to call
Congress together in extra session
in order to provide ways and means
to avert the disaster which threaten
ed the country. At Mr.. Cleveland
; suggestion Congress repealed the
; SHERMAN Act" and at once conf
dence in the banks was restored and
many of those institutions which had
suspended, resumed operations. Mon
ey again became abundant in the
great financial centres and now awaits
distribution throughout the country
through the marketing of products
of farm and mill and factory. The
passage of the Wilson tariff bill by
the House of Representatives has al
, ready given great impetus to man.
, fractures. Mills and factories which
have been idle since last Spring are
f now starting up and the number OF
the unemployed grows smaller day
by day. When free raw materials
for the manufacturers and cheaper
necessaries of life for the working
men shall have been assured by the
passage of the Wilson tariff bill in
the Senate, an era of activity in pro
duction and trade will surely set in
which will prove to be one of sub
stantial and enduring prosperity.
) The salient points to be remember
e ed and reflected upon by the intelli
r gent voter, therefore, are:
r l. President Cleveland left tn,
0 Treasury with surplus exceeding
:, one hundred millions of dollars wheI
S he surrendered office on March 4th
: 1889.
2. Elk President Harrison, owing
to the hurtful legislation of the Reet
Congress of 1889 90, including tn,
Sherman silver purchasing act ant
the Mckinley tariff law, left tn,
q Treasury bankrupt, with defcienc,
9 in the revenues of nearly fifty mil
lions of dollars, when he surrendered
office on March 4th, 1898.
The Harrison administration
y brought the Government to this pas
) and is responsible for the financia
and industrial disasters that hav
supervened. The Democratic party
a through President Cleveland and tn
= present Congress, has already cor
rected the fatal blunder of the Sher
+ man Silver Purchasing Act and unde
the instruction of the people at tn
ballot box in 1892, is preparing thu
a remedy for the stupid and mischiev
Gus revenue legislation embodied il
the Mckinley tariff law Unio,
II Leader.