The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-06-21
HOW THE RULE o R
A Few Remarks to Democrats Who
Say Protection Makes Trusts.
Philadelphia Telegraph.

Philadelphia Telegraph.
Every loyal Democrat must, of party ne
cessity, be fully persuaded in his own mind
that protection is, among other iniquities.
directly responsible for trusts. AS a good
Democrat he cannot be allowed to know
anything but that the tariff is the mother
of monopolies and of trade combinations.
1t is to the Republican policy of fostering
domestic industries that we owe the great
combines which crush out competition on
the one hand, and on the other load up the
share market with unlimited issues of wat
cred stock. These evils are the direct re-
suits of Republican domination, according
to all Democratic authority. An indirect
result, according to the same authority, is
the periodical reaction in the share market
by which watered stocks are squeezed, '
and their fictitious values wrung out of
them as water is wrung from a sponge. to
the disturbance of general business and
the ruin of innocent investors. All that
is the work of Republican protection, and
ii Is the duty Of good Democrats TO fight
against this unsound policy and turn the
bad Republicans out of power.
Yesterday the Bank of England reduced
its discount rate of 8 per cent, partly be-
cause of increasing confidence in the return
of peace in South Africa, and partly be-
cause Of Improvement in the European
financial situation. Last week was a
DIdck week III beTllU, anu a panic pre-
vailed there so disastrous that 1t shook
every bourse on the Continent. Yester-
day the Berlin market was quiet, and IL
was believed that the danger of general in
solvency, which for a time seemed impend-
ing, was averted, at least, for the moment.
What was the occasion for the panic in
Berlin? What happened TO cause such a
calamitouS excitement as prevailed there
during the ''black week."
Precisely what happens here when there
is a collapse in the share market The
watered stocks of the trusts and monopo-
lies and combines were squeezed and
the high prices to which they had been
marked up by speculative manipulation
were cut down 40. so and 60 per cent, and
in some cases artificial values were wiped
out altogether. The disruption occurred in
the line of Iron industrials," that is, in
the stocks of the trust monopolizing the
iron and steel interests. These trust
stocks broke first, but later, generalization
spread through the entire active list of the
Berlin exchange.
Are there, then, trusts and combines and
monopolies in Germany? So it seems! In
deed, it appears from the stock lists there
must be more trusts organized in Berlin
than in any other known locality except,
perhaps. Trenton, N. ]. AS our American
trusts are the direct offspring of our pro-
tective tariff 1t should logically follow that
there must be a tremendously protective
tariff existing I'm Germany to produce such
a crop of monopolistic trusts. So far from
this being the case, however, ii is the trusts
that may possibly produce a protective
tariff. 1t is, of all things in this world,
American competition that has ~punctured
the bubble of the Iron industrials' In Ber-
lin, and the iron interests are demanding
protective duties to keep American iron
and steel out of the German markets. 1t is
a poor rule that will not work both ways.
and If the tariff creates trusts, why should
not trusts create a tariff?