The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-10-24
CONCERNING PAklcs.
Democratic Legislation Respons'b'e
For Distress in 1893.

For Distress in 1893.
With an audacity which can only be
explained by the desperate situation
which makes q resort TO even the
most improbable OF theories a polit'
zeal necessity, the Democratic cam
paign text book charges the Repub-
iican party with responsibility for the
panic of 1898 and the hard times that
ensued. THE Republicans have been
trying to make the country believe.
saws the text book. that the panic OF
1898 was brought about by the Demo
cratic bill which was passed In 1894.
And then the text book writer pro-
ceeds 10 make merry over the absurd
ity of charging an effect In one year
to a cause that did not transpire until
the year after.
| Well. here are the facts: The last
wear of the Harrison administration.
1893, was the most prosperous the
country had enjoyed up to that time.
Labor was fully employed. capital was
actively seeking investment, and the
farmers were getting good price for
a big crop. So far as industrial and
| commercial conditions were concern
| ed, there was not a cloud in the sky.
Republican speakers and newspapers
tried to persuade the people that they
should let we'll enough alone and that
| Democratic success might bring dis
aster. But they would not listen. The
prices OF some things were pretty
high. The Democrats declared It was
because OF the high tariff and prom
ised that IL put into power they would
revise the tariff "in the interest Of the
plain people" There was little ex'
mediation throughout the country that
Harrison would be defeated, and bust
ness doomed right up to election day.
| But Harrison was defeated.
How the Panic Came.
And then what happened? Why. In
stantly, men who had money which
thew were about to invest locked It up
IN tba vaults and said I'VE will just
wait a while to see what happens"
Manufacturers engaged in producing
protected articles, realizing that as
soon as the Democratic congress could
Get at it their protection would be
| reduced, Immediately began to cut
their output to current demands. Who
could blame them for refusing to go
ahead and pile their warehouses full
of goods which might have to be sold
in competition with similar products
| made in countries where the factory
| wage scale was one-half or one-fourth
| NJ the factory wage scale which they
had been paying? Jobbers and whole.
sa,ers cut their orders to the manu-.
| facturers in the same way and for the
same reason. Retailers all over the
country bought their supplies from
! day. to day, fearing to be caught with
high. priced goods when the low-priced
| food came.
And so II happened that although
the Wilson bill was not actually pass,
ed until late in 1894 the panic began
the day after the election In 1892. 1t
was not what the Democratic presi-
dent and congress had done, but
what everybody knew they intended
TO do that wrought the havoc. Indeed.
IL the Wilson bill could have been
passed the day Cleveland was inaugu.
rated the damage to the country would
have been far less than that which
actually occurred.
The Danger Of Uncertainty.
This country Is big enough and rich
enough and resourceful enough to ad.
just itself to nearly any tariff law. no
matter how bad 1t may be. II II only
knows what 1t Is But during all the
long months OF. debate over the bill
the business of the country was, as 1t
were, hung up In the air. II men had
known that the duty on articles in
which they were interested was to be
reduced ten per cent. they could have
inquired accordingly. II they had
known the duty was to be reduced so
per cent. or 100 per cent they would
nave had some basis upon which to
ADJUST themselves. But they did not
know what the reduction would be,
80 they had absolutely no basis upon
which to do their figuring. They sim
ply had to wait and wait and wait.
keeping just as close to shore as they
possibly could until the long agony
was over. That is the analysis OF the
panic from 1898 to 1897, and no mat
ter how vigorously the Democratic
text book may dispute 1t, 1t cannot
deny or refute it.
Two Kinds Of Panles.
There is some reason, of course.
why the unthinking should charge the
responsibility for the panic OF 1907
upon the Republican party, because
that party was in power when the
panic occurred. But II ia to be re.
membered that there are two kinds OF
panics, one due to loss of confidence
In measures and the other due to loss
OF confidence In men. A political
party Is justly chargeable with bust.
ness disturbance due to bad measures
or the fear of bad measures; but II Ia
not chargeable with responsibility for
disturbance brought about by the
conduct Of men. It was the fear of
injurious legislation that brought upon
the country the disaster of 1897.
And therefore these disasters are
chargeable to the Democratic party.
But the money stringency of 1907 was
due absolutely to the frenzied finan.