The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-07-16
The Cause OF Trusts.

The Atlanta Constitution sends forth an
axiom which every harpooner of ~octopuses
ought to paste into his log book. 1t is this:
"PIenty OF money. NO trusts; no money. plenty of
trusts"
AS an economic proposition this may be
less sound than the innkeeper's: "Trust is
dead; Bad Pay killed him." and "In COP
we trust; all others cash." but 1t has at
least one earmark of an axiom. 1t is I'M
demonstrable. 1t is impossible to prove it,
and SO it makes a serviceable Popocratic
axiom. 1t looks best in it's concise form,
and is weakened and muddied when its
proprietor spreads it out as follows:
1.-THE Constitution has pointed out time and again
that trusts were unheard OF in this country until after
the contraction OF the currency began. accompanied
by the demonetiEation OF silver In 1878 and the con.
sequent panic.
"since that timo contraction has been going on at
such q rapid rate. and capital IS so hard to get, that
many business men and business interests have been
driven into trusts and combinations against their
better Judgment. They have found such q stop neces.
sary in order TO save their business and their properly.
"Under the fall OF values and tho stagnation of
trade caused by the single gold standard, business
men and industrial ventures every where have been
compelled to cnt down expenses. They md that tho
readiest method OF doing this 10 to pool their Is.
sues'-in other words. TO combine their capital 80 ~
to render composition less dangerous and destructive.
This Is the genesis OF trusts: contraction OF the cur.
rency. the fall OF values. decrease OF pronts. scarcity
OF capital. and then combination"
The demonstration of silver seems to
have been, like ADAMS fall, responsible for
all our woes. 1t produced trusts here and
in England, although they waited a good
while before showing themselves. That is
just like their innate and ir~redeemablc
dcvilishness. The plutocrats suffered from
lack Of capital. business was 80 bad on
account of the single gold standard that
the plutocrats had TO chip in and cut down
expenses. Hence the trusts. Nothing could
be simpler. First the Money Power demone-
ties the silver dollar, which was a remark
able thing for the Money Power to do, AZ
the silver dollar was only a curiosity.
Second, rs a result of this decentralization,
the Money Power, which appears to be pre-
ternaturally stupid, found itself 80 short of
money and power that, third, it's representa-
tives had to pool their pockets and form
trusts. 1t Is clear from this short history of
trusts that the Populists and Popocrats and
miscellaneous spouters who have been fam
ing against the trusts need to set their Ian
guage out to cool. AS the atlanta Coasti-
tuition shows, trusts are simply the refugees
Of needy capitalists who amt get the capt.
tai to carry on business on their own hook.
They are not wrongdoers. DOM blame
them. Blame the Crime of 1878. Blame il
for everything, and particularly because 1t
drove needy capitalists into trusts In order
to save their business and their property.
Not another word against these victims OF
the Crime Of 1873. Populists and Popo'
Gratis, these are your brothers. Weep for
the octopus and stop trying to spear him.
Here is your faithful organ showing you
the folly of your attacks upon your fellow
sufferers:
"No law can touch the trusts that does NOS go 10
the root OF the matter. No crusade against them can
avail anything SO long as conditions compel men "a
combine their capital 30 as to reduce expenses u
meet tho lower prioes caused BY the scarcity OF money
ana the fall OF values. /. Is In the noighborhood OF
the prepoSterous for q government to launch laws
against trusts and combinations IN restraint Of com
petition and at the same timo retain on Its statute
book the laws that breed these combinations and
make them an inevitable feature and accompaniment
OF hard times.
\ "t V true the Law can harAss them and compel