The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1899-04-01
THEIR SKIRMISH LINE.

The trusts have started their "edu-
tional movement" preliminary to the
presidential campaign of 1900. As
predicted by the Spokesman-Revlew,
the recent address OF Professor Ashley
before the British Economic Associa-
tion, defending these gigantic trade
combinations in the United States,
was intended as an "opening gun"
Taking his cue from that signal, Hen
ry Clews, the well-known New York
banker and writer, announces his
conversion. A few weeks ago Mr..
Clews was writing articles condemna-
tory of the trusts. His latest weekly
financial reviews defends them.
1t is apparent that MI. Clews has
been coached by the bold organizing
spirits at the head of these com blna-
tions, and his line of reasoning is
therefore of especial interest. From
this it appears that effort will be made
to discard the offensive name "trust"s
for the less odious expression "trade
com binations.'' And further effort
will be made to show that these com.
binations are capturing foreign mar
kets, and therefore are good thing
for the wage-earners OF the United
States. On this point Mr.. Clews says:
ITO state the case of these combina-
tions in plain and simple terms, the
object sought to be attained is to put
various interests belonging to differ.
ent parties together so as to form q
large concern represented by stock
capital without personal liability, hav-
ing in view reduction in expenses,
great efficiency, and production on a
larger scale, and the realization of
greater profits without advancing
prices. When number of small in
dividual plants are thus united for
common object under efficient official
management the expenses are materi-
ally cut down. With the increased
capital which this method admits of,
better machinery is secured, with
better results in meeting foreign COM
petition, which adds largely to the
countrys exports. In this way this
country has, during the past 10 years,
increased its ability to compete sue
cessfully with Great Britain and other
European countries; thus, in the seven
months ending February 1.'our exports
of manufactures increased IA 3per cent
while the total exports, including
manufactures, increased only 4 8 per
cent and the exports of all articles
excepting manufactures but 3.3 per
cent"
1t is further asserted that these
combinations, make everything which
they produce cheaper to the consumer
than it possibly could be without their
existence; and the larger the combina-
tiCn as rule. the better and cheaper
ia the consumer served
This is, of course, the sheerest,
rankest sort of fallacy. Prices are
lower in spite of the trusts, not be-
cause of their existence. Every eco.
nomic writer whose opinion is worth
rap admits that the past quarter GEN.
tury has brought a remarkable and
persistent fall in prices. Some attrib-
ute this to the single gold standard;
others ascribe it to changing condi-
tions of production and manufacture.
But whatever the reason, the decline is
in evidence, and the fundamental pur-
pose of the trust is to arrest this decline
in the article it seeks to control. Its
managers calculate that they can take
advantage of the decline in the raw
product, aud by controlling the manu-
factured output, arrest or diminish
the fall in the price of that which=they
control and sell to the consuming pub
lie.
Their trump cards the trusts will
play later. When the presidential
campaign is in full swing, they will
threaten the country with another
panic. 1--WE are here" they will say.
Conditions are adjusted to our oper-
ations. Strike US, and you disturb
industry, demoralize commerce and
alarm finance. If you crush us, you
will crush yourselves. Confidence
will be destroyed, banks will break,
capital will be withdrawn from invest
ment. factories will close, and millions
of wage earners will be thrown out of
nt."
This line of argument" was effec-
tive in 1895, when employed in sup.
port of the single gold standard. 1t
will have great force in I900.-Spokes-
man Review