Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-01-24
The Cause of Distrust.

Everybody knows that the treasury is il
difficulty. But many people do not SEE
that the root of difficulty is the new tariff
which has caused a serious reduction in
wages and in consumption throughout the
country. Officials of the treasury depart
ment are dreaming of a largely increased
revenue this year, but they persistently
ignore the fact that the wage-earnine
millions are not able to expend as much
in purchases as they have expended in
previous years. 1t is the common impres
sion that the decline in prices, which ART
really lower than ever before, has been
enough to compensate for the fall II
wages. But the workingmen and theil
wives, who have to meet household ex
penditures with reduced incomes, know
that it is u mistake.
The average of wholesale prices of all
commodities is now u shade lower than ii
was Oct 25, then the lowest point ever
reached, and yet it is only 6.3 per cent
lower than at the end of 1893. In rents
and retail prices, however, the decline has
not been as great, so that the entire cosl
of living for the millions of working peo
pie is probably about per cent less than
year ago. and 10 per cent less than two
years ago. Statistics collected by Dun's
Review from firms employing 153OO'
hands in 1892, show a decrease of q. a pei
cent in amount of wages paid since tina
year, of which ~ per cent was in the mum
Der of hands employed, 80 per cent il
hours of work and S.6 per cent in wage;
per hour The wages paid averaged 1873
per cent larger than year ago, ana tn
number of hands employed was S5 pei
cent greater, while the average of wage:
was SO per cent more per hour of work
These figures show a very satisfactory in
crease in the purchasing power of thu
millions employed in manufacturing es
Establishments since 1893, but great de
crease since 1892. The purchasing power
of the people has been diminished, sine,
The last year of prosperity, about twice as
much as the cost of living and in add
ton many hundred thousand people art
out of employment.
Exact statistics as to the number of per
sons employed are not obtainable, bu
about one sixth of all the hands employed
in the iron and steel industry appear t.
be out of work, at least one-fifth in the
wooden industry, and about one tenth il
shoe manufacture, shipments for Decem
Der indicate decrease of 20 per cent com
pared with two years ago All the data
obtanable indicate that not moro than
seven-eghths of the working force is al
present employed, and these at wages av-
eraging 20 per cent less than in years ol
prosperity. This means decrease OF
about 80 per cent in the purchasing power
of the people, and it is noteworthy thai,
the increase in volume of business repre-.
sented by clearinghouse exchanges is "a
per cent less than two years ago.
The treasury officials cannat see what
such figures have to no with the govern.
ment revenue. 1t is their misfortune
All the world outside the treasury depart
ment knows that the ability of the people
to purchase goods subject to taxation,
whether imported or domestic, must at
last determine the revenue to be derived
from any tariff or internal tax. If the
purchases of the people are, on the whole,
pa per cent less than in years of pros.
perity, a similar decrease In revenue must
be expected, even If duties and taxes were
not changed. But the change in tariff
was intended to cut down materially the
revenues derived from duties on imports.
There does not seem to be any prospect
of relief for the treasury unless by new
loans. 1t is always possible for the treas.
ury to borrow, of course, on some terms,
and our government ought always to be
able to borrow on as favorable terms as
any other in the world, if its Democrats
and Populists were not too much in evil
dence But when the capital of the world
caac that tho resources of the nation ara
deliberately crippled by its tariff policy.
and its revenues are cut down many mil
lions in order to enrich sugar and whisky
monopolists, it is not strange If they show
distrust and are unwilling to risk any
thing on the future prosperity Of the coun.
try.-[New York Tribune.
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