The Yale expositor., 1895-08-02
PRODUCING A PANIC.
BANKS GIVE THE PEOPLE AN
OBJECT LESSON.
Judge Miller Quotes from Gold Stand
ard Sources To Show That the FInan-
ciai Horrors of 1898 Were Manufac-
tured for Purpose.

tains very interesting article contrib
uted by Mr.. VIM Solomon, "a member Of
one OF the leading international bank
ing houses in New York city, a stanch
supporter of Mr.. Cleveland in 1892 and
member OF the committee on currency
or the Reform club" When read in
connection with the events that tran
spired soon after the inauguration Of
Mr.. Cleveland as President it shows
why the gold" men of New York, in
vestors of English capital in this coun-
try, supported Mr.. Cleveland and how,
and the object for which the financial
panic OF 1893 was initiated.
In the course of the article he says:
THE dangers threatening the country
from an overthrow of the existing basis
OF values which it was recognized would
result from the triumph of any but
sound-money candidate inspired vast
numbers of men to go into party or
ganization which was to claim the field
against the so called Hill Muir
ply Sheenan machine. 1t was
well understood that a reform
Of the tariff was to be the nom
inal issue CT the campaign, and that all
the changes were to be rung upon that
theme; but enthusiasm for reform or
the tariff would not have produced for
the 'anti-snapper' movement the sinews
Of war. What did produce them was
the conviction that the triumph of the
democratic party. with Mr.. Cleveland
at its head, would mean a repeal of the
purchasing clause of the Sherman act.
A large number of the men who joined
actively in the work of organization,
though also tariff reformers, could not
have afforded to make the numerous
self-sacrifices necessary in taking an
active part in the canvass on any but
such vital issue as that Of the main
tenance of the integrity of currency.
The work of these men, happily was
well rewarded, first in the national con-
vention in Chicago and subsequently
in congress by the repeal of the pur-
chase clause of the Sherman act"
1t thus appears that the real object
of these supporters of Mr.. Cleveland,
who for the most part were Cleveland
republicans, was to secure a repeal of
the purchasing clause of the Sherman
act, and that their first success was by
withdrawing attention from this object
by making tariff reform the nominal
issue in the platform and placing Cleve-
land upon it, and their second and final
success was the election of Mr.. Cleve-
land and the repeal Of this clause.
This platform declared distinctly in
favor of the use of both gold and silver
as standard money of the country and
the coinage of both without discrimi-
mating against either metal. This sub
ject was by both parties made to sleep
during the canvass, and the tarin, the
nominal issue" of the campaign, was
the only subject discussed. "The fading
out of the silver ISSUE" said the New
York Evening Post on Oct. 10, 1892, lis
one of the unmistakable signs of the
times. Hardly any one talks about it
now except those engaged in the pro-
duction of the metal.
Mr.. Cleveland was elected. and of the
members of congress then elected there
was, as stated in the public press, an
ascertained majority of forty-fve in
favor of the free coinage OF silver. The
very first thing attempted by Mr.. Cleve-
land after his inauguration was the pas
sage of a law by congress when 1t should
conyene-for the extra session was then
contemplated-not for the reform of the
tariff. about which so much had been
said during the canvass, but for re-
peal of the purchasing clause of the
Sherman act, about which nothing had
been said. The sentiment of the west
and of the south was in favor of free
silver. This sentiment must be
changed. How was the change to be
effected?
The Chicago Tribune Of April %, 1898,
in speaking by its New York cor
resnondent of the conference of Mr..
Carlisle, secretary of the treasury, with
the New York bankers the day previous
at the house of Mr.. Williams, president
of the Chemical bank, said: Mr.. Car
isle said that the country might as
we'll understand now as at any time
that II was suffering from vicious
silver law. and he believed that the only
way to bring the silver-favoring COM
munities to realization of the evil
that is contained in that law is to per-
NIT them to have an experience with
the business depression which it is
hound to cause. Some of the bankers
smiled a little when they heard the
secretary make this statement, and 1t
seemed to them that Mr.. Carlisle was
limiting to them his belief that silver
communities, or those sections of the
country where what is called silver
sentiment prevails, might just as well
at this time as at any other be brought
by personal experience to an under
standing of what the effect of the pres
ent silver policy of this government Is
going TO be. In other words, the bank
ers seem to think that Mr.. Carlisle did
not regard a little experience of hard
times as an unmitigated evil just now,
since II would bring these communities
and the men who represent them in
congress to an understanding Of these
financial matters, so that possibly re-
neal of the Sherman silver law and new