The Afro-American advance., 1900-11-17
WHY AMERICA pR0SPERS
INDUSTRY STIMULATED eY THE
GOLD STANDARD.


Driven to admit that the country is
prospering as 1t never prospered be-
fore, the Democratic-P Populist party
replies that the Republican party Is
simply lucky
Nature has been bountiful, and
would have been 50 IL gryan had
been elected President But the Dem
ocrats deny that McISinley's election
in 1896 either strengthened private
credit or enabled people 70 take bet
ter advantage Of natures kindness.
The campaign Of 1896 was fought
on two great issues-sound money VS..
a debased currency and protective
tariff VS.. free trade. These are still
live issues, and, IN fact, the Issues.
Mr.. Bryan. in addition to the declar-
alton Of his party platform. stood then,
as he does now, prc-eminent person
ally for boil
Even on the day after election in
1892, when it was known that the
protective tariff would be repealed
credit began 10 grow weak. In 1888
57S banks failed. and failures among
business men and manufacturers
reached the high-wate? mark in the
countrys history OF 1880, with total
liabilities of $402, 2,427,S1S.
That Mr. Mckinley'S election
strengthened private credit by reaf-
firning and reinstating the protective
tariff principle is shown by the fact
that Bradstreets reports for the first
six months Of this year, 1900, record
the rewest number of failures in the
United States within eighteen years
in spite of the fact that we now have
a national bankruptcy law. In 1893
the bank clearings. the great barcme-
ter of the country's credit and busi-
ness, were smaller than In any year
since 1885, The total bank ciearings
of the country for the entire year of
1893 were $53, 1896, ,991,522. In the first
six months of this year, 1900. they
were $42, ,S57, ,261,316, almost as much
as for the entire year OF 1893. while
the grand total of the bank clearings
for the year 1850 were $93. 3.507 100000
The private credit of the men and
firms of the country had been so
strengthened by the election Of Mr..
Mckinley that they were able TO do
nearly $40000.G0000O more business
through the banks In 1899 than they
did in 1893 under the Wilson policy,
for which Mr. Blyan stood
But it was tn. election of Mr.. Nc
Einlcv and the victory for sound
money that, equally with the assured
repeal Of the Wilson tariff bill,
strengthened private credit and ena-
bled the people to take full advantage
OF natures bounty. It has also
strengthened the national credit, and
made little highest ia the world 0nr
2 per cent. bonds are eagerly sought
after. ard are commanding q pre-
MUM. The money market is the in
dex of private credit. ard the changes
therein Immediately following Mr. Nc
Kinley's election were most signifi-
cant.
Despite the prevalence of n belief
that the free silver candidate was
doomed to defeat, the feeling of APP
prehension was most acute during the
few days preceding the election. The
preparation on every hand against Il
possible mischance, the locking up of
gold, curtailed the supply OF money
and seriously impaired credits. Money
was only loaned at the highest rates.
Brokers in New Yori; City dealing on
the Stock Exchange could only bor-
row money at Ii per cent. commission
and legal interest for the three days
from Friday TO Monday before the
election, and the two days from Mon
day to Wednesday. the day after the
election. On this basis the rate per
annunl for call loans was equivalent
TO 25 per cent. The present easy
money market and low rate on call
loans in New York. as reported In the
Tribune to-day, shows how private
credit has been strengthened under
the gold standard and Mr.. Bryan's de-
feat.
The whole situation of credits and
the money market put before election
day, 1886, represented the culmina-
ton of the distrust created by the
mere possibility that the country
might go upon a silver basis. On
Wednesday morning Mr.. McIkinley's
election was announced and credits
were so strengthened that the rate for
call lOnns in New York, which I take
rs basis in the sceilng in the money
market. promptly dropped to 6 per
cent. with the opening Of the days
business, and before the day ended
money was freely offered a. as low as
3h and per cent.
Immediately the large amount of
gold that had been boarded, estimated
by Leading bankers to have been over
$50.000,000, was released. For two
months before the election there was
premium Of Il per cent. or gold
among the brokers'. such was the de-
nand for boarding purposes. One
Leading bro,er sold in single day,
the week before election, $2,000,000
of geld in amounts which ranged from
a few hundred dollars up TO large
sums. This showed that all classes
were putting it away for the future.
With credit strengthened because
the protective tariff would give them
n market fCf their goods, the manu-