The Portland daily press., 1895-11-26
CONGRESSMAN DINGLEY

Continued from First Page
to pay this balance at a season of the
year when it is unusual to have balance
of trade against us and a Discrimination
abroad to buy our securities in conse-
quence of the unsatisfactory condition
Of our finances
Seventh-An Impairment of industries
and business confidence in the past two
years and a half-frst manifested after
| it had become know that the elections of
1899 had resulted in complete victory
Of the Democratic party who it was sup
posed would overthrow our protective
poiicy-which has so seriously injured
tbs prosperity of the country at so
high and conservative authority as Sec
Rotary Sherman estimated that the losses
of our people in that period have exceed
ed the cost of crushing the rebellion
which is estimated at 1000 millions of
dollars.
| The chief source of all these difficulties
after making all due allowance for secon-
Diary conditions which have been added
TO the intensity of the disturbances, was
unquestjonably the apprehension created
! IN the public mind that the success OF the
Democratic party IN capturing the legls.
lative as well as the executive branch OF
the government in 1899 meant the over
throw of the protective basis on whlch
our business and industries had been
conducted for 81 years-an apprehension
justified by the Democratic platform and
all the arguments employed by the Demo-
cratic organs and speakers.
| i need not detain you to point out why
| it was inevitable that the apprehension
of the removal or lowering OF duties be-
low the protective point increasing I'M
portations of foreign competing goods
which we had previously made for our
selves and to pointswhich would require
a lower wage basis and consequently
lower standard of living for our working
men with less purchasing power in order
to meet the new competition would inn
mediately check production and consump-
ton, shut down mach inery, discharge ope-
ratiyes, reduce wages, and disarrange nd
diminish business. Whenever duties on
foreign competing goods are reduced be-
low the protective point, our producers
must look forward to lower basis Of
foreign competition and prepare for it be-
fore it is actually put into law. Thus it
was inevitable that so far as our own pro
duction and consumption were concerned,
the expected reduction of duties should
be discounted continuously q year or
more in advance and affect our industries
in that respect in that period to about as
great an extent as though they had been
already Oh the statute book. So long as
changes in duties on competing imports
are not expected to carry the duty below
the protective point, they do not disturb
the basis on which production is proceed
ing here. The tariff revision of 1890, for
example, did not restrict business, but
on the contrary, promoted it, because
it was known that the revision would be
on protective tariff lines.
While the new tariff as finally enacted
was far less radical than the Wilson bill
as it passed the House, and th ough GER
tain influences retained protective duties
as to many schedules-on which account
1t was declared by Mr.. Cleveland and Mr..
Wilson to be that extent a surrender OF
Democratic principles which must be
remedied at the first opportunity-ye
there were sufficient schedules from
which protection was elimi mated, to en-
courage imports of goods which we had
been making for ourselves, to establish a
lower standard of wages and living than
existed in 1892-the wages at Fall River
being still IA per cent lower than in 1899
Notwithstanding restoration of II per
cent of the reduction made in 1893 and
1S94-and to make the volume of bust
ness the past 10 months as shown by the
bank clearingS 10 per cent less than in
the same months OF 1892, whereas with
the same growth shown prior to that
time they should now be 80 per cent
larger than three years ago.
When the distrust caused by anticipated
or realized reduction of duties below
the. protective point had impaired indus
tries and business, it was inevitable tina
revenue would rapidly decline and leave
a deficiency, unless additional sources of
revenue should be provided.
And when distrust was in the air, and
especially when it was seen that the gov
eminent revenue would be insufficient to
meet expenditures, it was inevitable that
there would arise tendency in timid
minds to present the government demand
notes for redemption in gold and when
the public in April, 1898 SAW the gold
redemption fund, which had steadily
beon mainland for IA years at the min
imum Of 100 millions, fall below that line
between safety and danger as fixed in
the public mind, without any movement
to replenish it by the sale Of bonds I'M
der the act Of 1876; and when they saw
the Treasury using the redeemed green
sury, it was inevitable that the distrust
would deepen into panic, which one,
two and three belated sales of bonds to
the extent of over 1863 millions have not
been able to fully overcome.
And the continuous use OF the re-
deemed greenbacks to the extent OF 1873
mill ions to meet the deficiency in tho
Treasury, united with turn of the bal
ance of trade against US, under the opera
lions OF the new tariff, which has made
it necessary to export gold to pay for
goods that ought to have been made at
home has made the relief Of the Treasu
ry, whose straits are due to an attempt
to overthrow the successful Republican
policy of many years, much more diff
cult than it would have been if the proper
remedy-that Of raising revenue equal
to expenditures and maintaining the
gold redemption fund as fund exclusive
ly SGT apart to redeem the government
demand notes-had been applied two
and half years aco or at least year
AGO.
shIt is neither frank not just for Sec
r. tary Carlisle to ascribe the perils of our
financial situation to the "endless chain"
of redemption created by the greenback
in our currency, and to expend his ener-
gles in recommendations for their with
drawal as the only remedy for he can but
know that as the 346 millions of green
backs We're issued In an exigency Of war
and have been part of our currency for
80 years, it is impossible to withdraw
them until some plan is devised for
substitute currency; and even then the
withdrawal must be SO slow that such
remedy could have No beneficial influence
on the present situation Moreover,
nothing Is clearer than that the country
will