The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1914-07-28
What Caused
the Claflin
Failure?
Widespread Industrial Depression Fol
Z lowing the Enactment Of the
Free Trade
Tariff

| sale dry goods house in the world,
which went into the hands of re-
ceivers recently, were honestly con-
uducted-and there is no allegation to
the contrary-why should 1t have
failed? The answer is easy. Simply
because of diminished trade. To
what was this due? To the wide
spread industrial depression which
has existed in the United States the
past six or nine months, beginning
with passage of the Underwood Tar
III bill and aggravated by the famous
legislative and executive policy Of the
Wilson administration.
The Clafiins, being large importers,
merchandisers and not producers,
we're in favir of low Tariff. OF
course. That meant more money in
their pockets, and they didn't care
a boot about the ultimate consumer
In the matter of cotton goods,
they had been buying about rs per
cent, of their supply in the United
States and rs per cent abroad. But
with the new tariff operating, they
have been getting only rs per cent
in this country. They did SO be-
cause they could buy cheaper from
the foreigner But has anybody, that
is, any consumer. noted appreciable
shading in prices? The result Is that
for such articles European manufac'
turers and labor have been receiving
nearly twice as much in volume as
heretofore while our cotton trade has
lost lust that much sale, money and
employment. This change has i'm
mense,y satisfactory to Claims natur
ally. but at best it was only an In
cident in their immense business.
Meanwhile in cotton manufacturing
and every other productive line and
in construction development, and
ansportation, due TO varying causes,
but unquestionably in large measure
because OF the blighting effect of
ruinous tariff system, there has been
construction and suspension, and hun
dreds of thousands of men have been
forced into idleness. This cuts down
the national payroll and reduces the
purchasing ability OF the public. And
it is upon the buying of the people
that concern like Claims depends.
Ii a man has no work, he gets no pay.
f he gets no pay he cannot buy. II
ne cannot buy the merchant cannot
sell. And If the merchant cannon
sell he is forced TO curtail his orders
to the wholesaler and Is unable 70
meet his payments for goods already
in hand. That is the condition which
precipitated the Clahn crash, and
the responsibility therefor can be
traced directly to tariff which mill
tated. against American enterprise
and industry, which. discouraged pro
duction instead of stimulating 1t. and
which robbed capital of its incentive
and deprived labor of employment
The Panhandle dividend incident
of Wednesday. there can be no
doubt, would have been imputed by
the Wilsonian doctrinairies at Wash
ington toim proper motives-a pur-
pose to influence Congress and ere
ate partisan sentiment against the
administration. But will 1t be said
that SO great a commercial firm az
the Clafins went into a receivership
,merely to discredit the policies OF
sPtssident Wilson > and ! his.. Hrtys
Hardly. The company was compclf
ed rather to take this step because
the Wilson administration Is in pow.
'er, not TO get even" The admins
tration does not need to worry about
being condemned by public opinion
it is being damned by events. Ihe
Gazette Times is persuaded that the
country at large was IN mood to
make the best of the tariff law &c
accept it philosophically and give /
a fair trial. and the same is true
with regard to the banking ana cur
rency law. Both are experiments
both necessltate wide readjustments
and both contain uncertainties whlcl
even their authors do not pretend to
fathom. Why, therefore, with these |
unso we'd problems oyerhanging, and
the prolonged railroad rate controver
sy blocking the entire transportation
situation, could not President Wilson
have called halt for a breathins
spell and afforded to all business the
of recovery and rehabii
itation without the menace OF further
This Is the great oflense OF the Wi
son administration. 1t has been on