Newspaper Page Text
THE ADVOCATE, E2HJ8LICAN AND DEMOCRATIC PANICS. It is a favorite schema of the re publican press and politicians, with a view of shifting responsibility for listing conditions from their own party, to charge the late panic and all its consequent disasters to the democratic administration. Not withstanding there has been no change in the laws, except by the re peal of the Sherman law for which republican senators and representa tives are responsible, it is thought, by this hypoaritical pretense to again deceive the people and secure their support once more for there publican party. We desire at this time to call at ' - tention to the fact that in the en deavor to thus shift the responsibility there has never yet been an attempt at a clear and explicit statement of the direct causes that it is pretended the democratic party has jast put in operation by which the prevailing disasters have been brought about. Reference has been made, it is true, to ''the democratic policy of free trade," but democrats have no such policy, and the pretense that they have is a humbug. There is less than 4 per cent difference between the MoKinley tariff law now in foroe and the pending democratic bill, and there is not a man or woman who knows anything at all about the matter who does not know that the whole controversy upon the tariff question between republican and democratic parties is a sham from first to last that it is kept up solely to divert at tention from other qaestions of vital importance, and that neither party intends to effect any change that will curtail the power of the monopolies now controlling the protected indus tries to rob the people on the one hand and labor on the other. But if the late panio is justly chargableto the democratic party, to what party are we to attribute the panics of 1873 and 1869 and what were the causes of those overwhelm ing disastera to the country? Un fortunately for the republican press and politicians, they can not shift that responsibility. It confronts them with all its ghastly details and sickening horrors, and will ever re main a monument of the natural con aaquenceof republican policy exe cuted by a republican administration, instead of republican policy exe cuted by a democratic administra tion as we have it to-day. Mr. Blaine in his "Twenty Years in Congress," volume 2, page 561, saya:. .' The Forty-third congress met in a period of disoouragoment and disaster. The financial panio whioh swept over New York in the preceding September (1873) waa fol lowed by deep depression throughout the country. Wrecks of business enterprises were everywhere visible, the financial mar keta of the. world were disturbed and alarmed, doubt and hesitation filled the minda of senators and representatives. A black flag seemed to overhang the finances of the government as well as of individual. II affected commerce and dimin ished the revenue Br absis tiho pboductioh ffid by reducing imports. Vfz3 it fear of democratic free .trftbj&ft czzzid ell this? If not what was the cause? Republicans had the administration and both branches of congress. Will republi cans who now charge the present condition of affairs to the democratio party be kind enough to tell us what their party did to produce the panic of 1873? Now note the effect of this panio upon the following elections. Mr. Blaine says, page 563: For the first time sinoe the organization of the republican party and its aooeesion to power in the Union, an opposition majority was elected to the bouse of representatives." In consequence of the disasters unnecessarily brought upon the I country, the people turned from the party in po wer to the" party that was seeking "a chance," with the blind hope of finding relief, but no relief came. One circumstance that oc curred at thia time must not escape us in passing, and we give it in Mr. Blaine's own words. He says: The republican leaders took warning, and agreed that, before losing control of the lower house they would seoure the passage of the act for resumption of specie pay ment. President Grant and Seoretary Bristowwere earnest in recommending a measure of that character. Persona) con ferences to oompare views, to consolidate republican opinion, and to induoe harmony of aotion, were held early in the seoond session of the Forty-third congress. Con cessions were made, a middle ground was scoured, and a measure was finally per fected. This measure was rushed through congress and became a law immedi ately after the holidays. When President Grant affixed his signature to it Mr. Blaine says he "took the somewhat unusual step of sending to the senate a speoial message." He made the act subject of congratula tion and recommended as further legislation to make it more effect aal, among other things an increase of ' revenue and the redemption of the treasury notes outstanding in coin, I allowing 10 per cent, premium for the coin. This was too bold a robbery for even a republican congress to undertake right on the heels of the resumption act and the recommenda tion was not adopted. The increase of the revenue was secured by an additional duty on sugar. Instead of a revival of prosperity the country gradually adapted itself to the changed conditions following the panio, the people lived more eco nomically, worked harder and re ceived less reward for their industry, and not sinoe that time has there been the same degree of general prosperity that there was before. In fact the causes set in operation by the republican party whioh resulted in the panio of 1873, and prior there to, have been in operation ever sinoe and are to-day responsible for the prevailing conditions under this democratio administration. In a speeoh in the United States senate, March 17, 1874, General John A. Logan, pointed out the cause of the panio of 1873 as follows: But, sir, that the panio was not due to the CHA&ACTis of the currency is proved by the history of the panio itself. No, eir, the panio was not attributable to the character of the currency, bul to a uosrr rAKua, and to nothing else. In the very midst of the panio, we saw the leading bankers and business men of New York presa&g and urgiaj tha president and the seoretary of the treasury to let loose 20 or 25 millions more of the same paper for their relief the very same men who to-day dsnounce it as a disgrace to our govern ment. It waa good enough for them when they were in trouble. Why is it that representatives forget the interests of their own section and stand up here as the advocates of the gold brokers and money lenders and sharks, the same olass of men whose tables Christ turned over, and whom he lashed out of the temple at Jerusalem? Carry out the theory of the oontraotioniats and what must be the inevitable result? Every enterprise and industry must be dwarfed in like pro portion. The busy hum of the spindle will cease its sound in many a mill whioh now gives employment to hundreds of ac tive hands, and supplies the comforts of life to many a happy home. The bright blaze of many an iron founds whioh gives ! life and cheerfulness to the grand scenery along the streams of Pennsylvania, will oeasa to gild the night with its rays. And the same industry in my own state, and that of the senator from Missouri, whioh has been so rapidly increasing of late, will be crippled, and hundreds who now find employment there will be compelled to seek a home elsewhere, for want of work. The undeveloped resources of the South and West, whioh we have just begun to appre ciate, will rest in abeyance till a wiser polioy shall bring them into use. Why, sir, the people were never freer from debt in proportion to the business done than in 18C5, at the close of the war, when Mr. MoCullough began his system of con traction, and at the very time when 11 mil lions more people were to be supplied. Was it to be supposed that the activity and energy whioh the adequate supply of money had put in operation, and whioh was giving prosperity and happiness to the country, would suddenly dwarf itself to suit such finanoial notions without a struggle? The inevitable result was an expedient to meet the consequent want, and credit was ex panded. At the very moment above all others when adequate supply was needed, the opposite course was adopted; and right here lies the true oause of the late panio whioh resulted from a momt famisb and not from an excessive supply. Sir, turn this matter as we will, and look at it from any side whatever, and it does present the appearance of being a stupendous scheme of the money holders to seize the opportunity of placing under their control the vast industries of the nation. There fore, I warn senators against pushing too far the great oonflioi now going on between capital and labor. Capital rests upon labor; but when it attempts to press too heavily upon that whioh supports it in a free republic, the slumbering volcano, whose mutterings are beginning already to be heard, will burst forth with a fury that no legislation will quell. Here we have good republican au thority respecting one of the causes of the panio of 1873. Confirmatory of General Logan's views, Edward Howland, in his "Annals of America," page 691, observes: Jay Cooke fc Co. failed on the 18th. On the 13th soores of firms identified with vari ous stocks failed, and on the 20th the stook exchange was dosed and not reopened un til the 30th. During the panio suoh was the necessity for some legal tender with whioh to settle indebtedness that greenbacks were hoarded and sold at a premium. Other confirmatory testimony might be added to sustain thia view The foundations for such a panio were laid at an earlier date in re publican legislation discriminating against one kind of currency and in favor of another, and advantage was once before taken of this dis crimination to precipitate the panio of 1869- In his "Annals of Amer ica," page 677, Edward Howland says: September 24, 18C3 A finanoial panio in New York city culminated in what has bees called black Friday. The finanoial policy of the government requiring payment of duties in gold offered the opportunity to speculators to monopo lize thia commodity. A plot for this pur pose was entered into by speculators in New York, the chief leaders of which were James Fisk and J ay Gould. The banks of New York had only about 15 millions of specie, and the government had in the treas ury about 100 more. That in the banks could easily be controlled, and the question was to prevent the government from offer ing its gold for sale, as had been done from time to time. Though the facts in the case have never been reliably investigated, there is no doubt that the conspirators had suc ceeded in assuring themselves that, by un derhanded influences, they oould oonfi. dently rely on the assistance of those in au thority to aid their scheme. The gold in the banks they commenced on the 13 jh to purchase, and on the 22d had raised the prioe to 110. On the next day it was raised to Ui. On the 2iih the prioe was advanced to 160, and the speculators felt sure of carry ing it to 200. The prioe, however, was broken by the information sent by tele graph that the seoretary of the treasury would sell gold; and, in a few hours, the price fell to 132. During the period of ex oitement, it has been estimated that con tracts were made for the sale of at least 500 millions of gold. The crisis had ruined thousands, disarranged the business of the entire country, and showed that a finanoial system whioh plaoes the legitimate ex changes of industry at the mercy of a few unscrupulous gamblers, is as inoompetent for the needs of a well-organized society as the contests of antagonistic feudal barons would be in a well-settled political com monwealth. From the foregoing facts the reader will be able to discern some of the causes of panics and the meth ods by which they are brought about. As observed by Mr. Howland, there is not the least doubt that those in authority have been parties to those finanoial conspiracies, and have shared in the spoils. The republican party waa in undis puted possession. of all departments of the government when these panics occurred, and the hypocritical and deceptive pretense by which repub lican editors and politicians seek to shift responsibility for the panio of 1893 to the democratio administra tion, attributing it to "tariff tinker ing" and "fear of democratio free trade" will not avail them to escape responsibility for the panics of 1869 and 1873. As a matter of fact the panio of 1893 was brought about by the same class of men, through the same instrumentalities and by like methods as the ones that preceded it. Democratio methods and polioy are the same as republican methods and polioy, and it matters not which party is in the saddle, the people are skinned by the same process. The only difference is in which party gets the spoils. HOW THE CREDIT OF KANSAS HAS BEEN RUINED. Treasurer Biddle in a private note to the editor of the Advocate says: I have received an offer from the Citizen's Savings bank of New York, to refund the bonds now held by them at 4 per cent. These held by that institution at present bear 7 per cent, interest. I This shows how the credit of Kan sas has been ruined by Populists. The holdeis of bonds bearing 7 per cent, interest, purchased under re publican administration, offer to re new them under Populist adminis tration for 4 per cent. Surely Kansas should ba "redeemed."