The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1912-11-14

y exist to better understand the cause
for such conditions.
! Since the result has been known
; the prediction is freely made, on the
7 street and elsewhere, that we would
see hard times.
Some of the papers are predicting
"a panic"
What is a panic; what aus it;
what will prevent it; what will cure
it after we get it? These are ques-
tons that seem to be as difficult of
solution as the tariff question.
| have heard public men claim that
a reduction Of the tariff would cause
a panic. Possibly some people think
today that that is the cause and, be-
cause the democrats are in power,
and threaten a downward revision"
we will have a panic.
The panic of '93 to '97 was charged
to the democrats and said to be caus-
ed by the operations of the "Dingley
Bill" The prosperity (said to exist
during the few years just previous to
'93, was said to be brought about by
the operations Of the mckinley Bill"
A careful comparison of those two
tariff bills showed that the Dipgley
bill averaged to be just three per cent
lower than the Mckinley bill.
If three per cent reduction in the
tariff schedule will, or can, bring such
disaster to American commerce as
was wrought from 1898 to 1897 then,
certainly, the tariff question is a
mighty delicate issue.
History records five great financial
panics during the last century; in
1876, 1886, 1857. 1873, and 1893. In
1916 the tariff had just been raised
and for the first time avowedly for
protection. In 1886 it was normal.
In 1857 it had been lowered somewhat
In 1873 it was higher than ever be-
fore.
In 1898 it was lowered 8 per cent.
A careful study of the relation Of the
tariff to panics industrial or Finan-
ciaD will bring the student to the
conclusion that the tariff does not
cause or cure panics.
An industrial panic is caused by the
workers Of a country producing more
thar they can buy back, thus causing
a surplus and the necessary shutting
down OF the factories until the sur
plus can be disposed of and the throw
ing of workers out of employment.
According to Carol D. Wright who
government statistician for six
years, all the workers in this
average to receive SAFE a year
for their work and they average to
produce $3.50 worth OF goods. Follow
this to it's logical end and you will
understand the cause OF ~"overproduc-
n IldLIIdl pdhiN 10 >NUSSN
rurtailing of currency and credit.
Currency and credit are artificial aids
the exchange of the products of
.abor. If currency and credit are ex-
tended freely, exchanges are made
without friction or hindrance. If cur
rency and credit are withheld then
there is trouble in the exchanging and
s%tagnation in business. When cur
rency and credit are withheld at the
same time and there is an "overpro-
of goods the trouble is aug
mented and we have q great panic"
Often currency and credit are re-
fused TO a manufacturing concern and
it's employees because the factory has
shut down and its employees are out
of work. Sometimes the refusal of
and credit to a factory
causes it to shut down and thus throw
its employees out of work n then
they are refused currency and credit.
The furnishing of currency and
credit to a people Is a government
function. 1t is wholly artificial and
the government reserves the right,
alone, to make the currency and for
bids any state, company, or individual
to make it. This government function
is given to the banking fraternity to
control and operate for their own
private business and profit. When IL
profits the money power to extend cur
rency and credit they extend it freely.
When they choose to withhold cur
rency and credit they have the power
to do so.
In each of the five great financial
panics above referred to which DC
Cured in the ninteenth century the
currency and credit was destroyed