The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-07

Iainfre or large firm In London-ProwSe,
Hair ~. Morris-who acted as agents for
large: number of our fish exporting firms
our slecaI firms were largely involved with
the London house. and fell with it. The
suspension of one firm told heavily on 9TH
ers and helped to bring them down. After
some time. another firm in Bristol with
winch. large business was done also sus-
pended. greatly increasing the panic, though
happily this firm has been resuscitated and
mas resumed business under another name.
The remote causes, however, which led
to the catastrophe have been long maturing,
and It was but a question of time when
the day of reckoning should arrive. The
great staple industry of the country, as
has been evident to discerning minds was
conducted on unsound principles. The fish
what was known 1.-THE credit system"
The large mercantile firms at the begin
ming of each fishing season made advances
in provisions and goods of various kinds
to the fishermen. in many instances direct
~ but often through middle-men, called
1abors were at the close of the fishing sea-
son handle over to the merchant Suppliers
ana the fsherman's account was adjusted.
II a surplus to his credit remained, he OBJ
tained his winter supplies and returned
home happy. In bad seasons he found him.
make up his winter provisions oR credit.
Many became, in this way, hopelessly sunk
In debt The evils of such a system
not difficult to discover. 1t was calculated
to undermine the honesty and industry of
the fisherman. and in many instances to
deprive him of all hope and energy: 1t was
hardly less Injurious to the suppler. At
the close of each fishing season he found
a Pile of bad debts accumulated by those.
who had been unsuccessful in the fisheries.
To cover these he must make high charges,
which the toiling fisherman resented Thus
the truck system was a curse to him
itn2Is gave and to him that received. Once
lth6soughly established, 1T was almost i'm
possible to get out of the vicious round.
The crash has come at last which will end
it, but at an enormous cost of suffering
blow. ~
r. WIDESPREAD RUM.
Another efficient cause of the present
crisis was the competition of the bounty
supported French fisheries from LIE Pierre.
Ten years ago mercantile firms were
IFqsperous and held high and honored
place. AT that date, by increased bounties,
the French bank fisheries were largely
eKlmnded. Large catches drove down the
prize of Goldfish. Newfoundland houses lost
Heavily on their exports, and a considerable
portion of their capital was swept away
htaHy lost from $4,000 to 100000 in one
year They were unable. afterwa-d to
recoup themselves, and to keep affoat had
rfeourse to advances made by our local
banks. The directors of the banks were al
most entirely merchants. An unsound sys-
tefnS of banking commenced. The directors
bad at the banks largely overdrawn ac-
counts. and others were allowed a similar
license. This could only last for a time.
tass year short fishery and the failure
pf two English firms interested in the
hanking and mercantile system was re-
naned to a state OF chaos. from which. after
Es6e SuTer1ngS and much misery it will
healthier condition.
Rnt if any one supposes that the pres
HEEan cement from whic.. the country will
Egssdily recover. he is widely mistaken.
and will not right itself except by slow de-
grees and many sacrifices BY these ruin
Gus Gus. bank and mercantile failures all the
mi,
Atitltudes are impoverished Large
amounts of capital employed in the bust
UP, and the question arises, where will the
fresh capital be found to carry on the seal
fishery rs in March. and the great cod fisheries
~ summer Ihe property of the suspended
edness the banks Of late years. the ilas seal
lshery has not been remunerative, owing
to the decline in the price of sealskins ana
seal Oil. All this, it is to be feared, means
that next year large numbers viii be I'M
employed. Already the cry of want comes
rom many quarters. 1t is calculated that
next year year the importations will be one
manly derived from duties on imports
Should the revenue be reducedi by one-half
and the interest on the public debt viii not
bankruptcy must follow
The state of matters at the present mo-
ment IS hardly conceivable by outsiders
christmas mas come. and the festive sea-
extent. The bills of the year are SEMI
round but few can pay. Many respectable
IamIiies are not able to pay their serv-
ants wages. Tradespeople, shopkeepers
professional men, such doctors and
lawyers, cannot collect their accounts
aries of ministers have fallen and are like
ly to go lower. To crown ALL the govern
ment has no money to pay the official sal
aries at the end of the quarter The poor
relief grant is, paid by orders on shop
Keepers. Where teachers are to get their
salaries is a mystery. The total amount of
rlaf fin, &c
table Institutions, orphanages and many
churches have suffered by the failure of
the banks in which their funds were Kent
Suppose this state of matters TO continue
for some time, thousands will be without
bread;
every lip. Most intelligent men admit that
there but two alternatives before us
One is to seek admission to the Dominion
OF Canada, which would assume our pub
Hc liabilities and save from bankruptcy
The The other IS to ask the British govern
Investigate our financial condition. with a
view to guaranteeing loan. This would
involve suspension of the Constitution at
least for a few years, and the reversion of
the island to the condition of a crown col
ohy, administered by Governor and a Sc
lect council. The. former could hardly be ar
Bring us no present relief. The latter would
bring help quickly, and to it most eyes are
turning NO doubt should Newfoundland
become a crown colony, the issue would be
union with Canada.
Newfoundland Is the twelfth largest island
ports exceeds $6O0O,OOO annually, and it's i'm
ports 81, 600. Its principal exports are
Goldfish, value $3,6OO,o00; cod and seal oil,
value $4,000; sealskins, value s166, 900;
canned Holsters, 1865 600; herring salmon
etc. value 1926, O0O and copper copper ore
and iron pyrites value $639OOO 1t has a
population of over 10000 and over $50 miles
Of railway. 1t has public debt of 1885,
s46. its total revenues in 1893 Gncluding
loans) were 81, S53,844 and its total expendi-
lures in that year $2,11O012