The Owosso times., 1900-08-24
How Mckinley Brought Prosperity.

the Democratic Populist party replies
that the Republican party is "simply
lucky"
Nature has been bountiful. and
would have been so If Bryan had been
elected President. But the Democrats
deny that McKinley's election in 1896
either strengthened private credit or
enabled people to take better 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 declara-
tion of his party platform, stood then.
as he does now, pre-eminent personally
for both.
Even on the day after election in 1892
when it was known that the protective
tariff would be repealed, credit began
to grow weak. In 1893, 57S banks failed,
and failures among business men and
manufacturers reached the high water
mark in the country's history of 49,
$50, with total liabilities of $4O2, ,427, ,SlS.
That Mr. McKinley's election strength.
ened private credit by reaffirming and
reinstating the protective tariff prin-
ciple Is shown by the fact that Brad.
streets reports for the first six months
OF this year, 1900, record the fewest
number OF failures in the United States
within eighteen years in spite of the
fact that we now have a national bank.
ruptcy law. In 1893 the bank clearings
the great barometer of the country's
credit and business, were smaller than
in any year since 1888. The total bank
clearings OF the country for the entire
year of 1893 were s53, $50, 994. .522. In
the first six months of this year. 1900,
they were S42,s57, 26l, ,3l6, almost as
much as for the entire year of 1893,
while the grand total of the bank clear
ings for the year 1899 were s9S, 5O7, 900,
600.
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 100000. 100000 more business
through the banks in 1899 than they did
in 1893 under the Wilson policy, for
which Mr.. Bryan stood.
But it was the election of Mr.. Nc
Kinley and the victory for sound money
that, equally with the assured repeal of
the Wilson tariff bill, strengthened
private credit and enabled the people
to take full advantage of natures
bounty. lthas also strengthened the (
national credit, and made it the highest
in the world. Our Q per cent bonds
are eagerly sought after, and are com.
manding premium. The money mar.
ket is the index of private credit, and
the changes therein Immediately follow.
ing Mr.. McKinley's election were most
significant.
Despite the prevalence of belief
that the free silver candidate was
doomed to defeat, the feeling of appre.
hensicn was most acute during the few
days preceding the election. The prep.
aration on every hand against pos.
sible mischance, the locking up of gold,
curtailed the supply of money and seri-
ously impaired credits. Money was
only loaned at the highest rates.
Brokers in New York City dealing
on the stock exchange could only bor-
row money at per cent commission
and legal interest for the three days
from Friday to Monday before the elec-
ton, and the two days from Monday to
Wednesday, the day after the election.
On this basis the rate per annum for
call loans was equivalent to % per cent.
The present easy money market and
low rate on call loans in New York, as
reported in The Tribune today, shows
how private credit has been strength.
ened under the gold standard and Mr..
Bryan's defeat.
The whole situation of credits and the
money market put before election day,
1896, represented the elimination of
the distrust created by the mere posi-
bility that the country might go upon
silver basis. On the Wednesday morn
ing Mr.. McKinley's election was an
nounced and credits were so strength
ened that the rate for call loans in New
York. which take as basis in the
feeling in the money market, promptly
dropped to per cent with the opening
of the days business, and before the
day ended money was freely offered at
as low as 81 and per cent.
Immediately the large amount of
gold that had been boarded, estimated
by leading bankers to have been over
$50, 100000, was released. For two
months before the election there was a
premium of per cent on gold among
the brokers, such was the demand for
boarding purposes. One leading broker
er sold in single day, the week before
election, 100000 of gold in amounts
which ranged from few hundred dol.
lars up to large sums. This showed
| that all classes were nuttino IN awav