Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1907-08-07
Tarin and NIGH Prlce..

IQaC existed IN Ills CQmDatHn.
Tariff and High Prices.
1t Is not pleasant task to warn the
public that there must be reaction
from the high pressure prosperity that
has evidently overstepped the bounds of
safety. The recession has already be-
gun and how far the pendulum Will
swing in the other direction Is the
question that concerns everyone. In
spite Of the enormous increase in the
volume of currency in circulation,
money is slight" and difficult to pro-
cure on even the best of security and
at high rates Of interest. Merchants
In New York are paying per cent for
accommodations and some Of the banks
are even refusing to discount CONNER
cial paper at that rate. Call money
was is per cent at the beginning Of the
month and very little to be had at that
e1orbitant rate. Business Is gradually
slowing up and in the West merchants
are awaiting the harvesting Of the
crops before buying their fall stocks
Of goods. The railroads are discharg-
ing men and stopping Improvements.
New buildings are not being undertake
en-, unless contracts have previously
been entered into.
The high price of commodities and
the resulting greatly Increased cost Of
living, without a compensatlng increase
Of Income, is compelling those with linn
Tied Incomes to economic. There Is
general era of strikes and lockouts on
account Of the demands for higher
wages and the refusal to pay such In
crease. Everyone is waiting to see
what the harvest will be and to ar
range their business accordingly. It Ia
still too early to determine what the
shortage in the crops will be, but it is
certain that the average will be below
normal, with partial failures in some
states Of small grains at least. There
is a general failure Of the fruit crop
in many states and even small fruits
have been partial failure.
There Is a compensation for the grow
er and faymer, however, for the price
they are obtaining Is higher, SO that
perhaps on the average the farmers
will have as much money to spend The
higher prices for what they have to
buy are the discouraglng feature. Mean
time the government Is collecting tar
If and internal revenue taxes far in
excess of the need of revenue, even I'M
der the extrayagant appropriations Of
Congress and the end OF the fiscal year
finds surplus OF $4,000, 600 collected
over and above the outgo. The ma
tlonal banks have been loaned 1884,
100000 Of the surplus that the enor-
nous tariff taxes have piled up in the
last few years upon which they pay no
interest to the government, but are
loaning out at the highest rate that
money will demand.
We thus have the extraordinary spec
tacle, under the present Republican pol
Icy, Of the collection from the people
Of tariff and other taxes, much in ex-
cess of the needs Of the government
and these excess taxes, which should be
in the pockets Of the people, loaned out
to them, so that in fact the taxpayers
are borrowing their own money at high
rates of interest.
Can any sensible voter endorse such
system? Should not the tariff be re-
vised SO that the trusts will not be SO
highly protected and taxation be re-
duced? The Republican standpatters
declare their policy to be to continue
to let well enough alone and the COM
Ing Congress will continue that policy
of protecting the trusts and plundering
the people.