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The Commoner.
VOLUME 8, NUMBER 2
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Republ
ican Panic Fallacy Exploded
So many rrqmHln have Im'pii made for copies
Of The Commoner, dalod October 12, I DOG, and
containing Lho following article, that no more
coplcH can bo mippllod. Tho article Is Iheroforo
rcprlnlod In order to nupply lho domand:
d. Clay, a Mexico, Mo., reader, writes:
"General (Ironvonor, speaking at our chautauqua,
mild that low tariff and hard II in oh aro found
co-existing throughout our history always
found together. Without any dales ho support
ed tills statement of tho usual old stock-in-trade
argument of tho protectionist. Is lie right?"
General (Jrosvonor is mistaken. Tho reason
ho did not give tho dates, is that tho dates
would have confounded him. Tho truth is that
overy panic since the civil war originated under
republican rule and developed under republican
legislation.
The great panic which gavo "Black Friday"
to history occurred during tho month of Septem
ber, 18G9, when tho republican party was in
power.
Tho great panic marked by tho failure of
Jay Cooko &. Co., occurred in September, 1873.
Than the republican party was in power and
olovon months prior to tho beginning of that
panic that party had boon re-elected to power.
Tho "panic of 1893" began long prior to
that year and, Indeed, long prior to the presiden
tial oloction of 1802; and it is a fact, although
"republican orators and republican organs try
to forgot it, that tho so-called panic of 1893
bogan and played its greatest havoc under that
famous tariff law known as tho McKinloy bill.
It may bo woll for Commoner readors to
koop readily at hand somo of tho facts and fig
ures relating to this question.
Tho republican party was restored to power
March 4, 1889.
Tho McKinloy tariff bill became a law Octo
bor G, 1890, and romained In effect until August
27, 1804.
Tho Wilson tariff law, enacted by a demo
cratic congress wont into orfect August 27, 1804.
If any one will talco tho trouble to examine
tho republican campaign text-book for 1004,
pagos 125, 120 and 127 ho will find considerable
opaco dovotod to a statement of business disas
ters from July 18, 1803, until Novomber 13,
1804. Tho ropublican managors expected their
readors to romombor that tho Cleveland admin
istration was inaugurated March 4, 1803, and
that all these disasters occurred under demo
cratic administration; but thoy expected their
readors to forgot that tho republican tariff law
was in forco up to August 27, 1894, or covering
moro than twolvo months of the sixteon months
porlod of business disasters as described by the
ropublican toxt-boolc.
In Uioir references to tho panic of 1893 ro
publican orators and organs habitually over
look tho dato whon tho McKinloy law ceased and
tho Wilson law wont into effect. But when in
thoir tnrlft discussions thoy aro required to face
tho fact that that panic played its greatest havoc
during tho life of the ropublican tariff law they
answor that It was tho anticipation of tariff
legislation growing out of democratic victory
in 1892 which brought on those business dis
asters. For this reason in their list of business
disasters thoy placo July is, 1893, as marking
tho boginnlng of that groat panic.
Lot it bo remembered that tho McKinloy
Washington Letter
Washington, D. C, January 20.- Within
two days Secretary Taft made two important
utterances relative to tho questions of capital
r in nfbnnB0tar ?lculatd to please neither
?! ? i groat controversy. Mr. Taft's reply
to Llewellyn Lewis, secretary of tho Ohio Fed
oration of Labor, and his address in New York
will nfnPr0bl?mS' Cl?arly Imlicat0 that he is
willing to meet organized labor half way, but
is unwilling to como tho whole distance Tho
secretary of war may bo a very Honest man
but ho is certainly a very bad politician Tl ose
latest utterances, which have been so widel?
printed that it is unnecessary to repeat their
contents hero, clearly indicate that ho doe riot
understand nrcrnnfeiwi im, ," ,.cs uot
Political ,mrtvD u "Z1 . ""u" l.B8B '? .?Wll
Party is today doinlnai fe?of S
tariff bill became a law October 6, 1890, and
that the first indications of tho so called panic
of 1893-4 wore given November 11, 1890, A
LITTLE MORE THAN THIRTY DAYS AFTER
THE M'KINLEY TARIFF BILL BECAME A
LAW. From that dato the panic raged.
Tho Harrison administration was inaugurat
ed March 4, 1889k, and when tho first indications
of this panic were given President Harrison had
not exhausted tho half of the term for which he
was elected. It is admitted by everyone fa
miliar with the facts that President Harrison's
administration had plates prepared for the bonds
and Mr. Harrison's secretary of the treasury
made a visit to New York for the purpose of
negotiating the bond deal. He was wired by
Mr. Harrison to return to Washington. Mr.
Harrison said that ho had concluded not to have
any bond issues under his administration and in
order to avoid tho stigma the Harrison admin
istration warded off the bond Issue and unload
ed it on tho incoming Cleveland administration.
It may not be out of place to point out that
when the democratic administration surrendered
the reins Qf government, March 4, 1889, there
was in the federal treasury the largest surplus
in history. When the republican party went out
of power, March 4, 1803, there was a large
deficit and tho incoming administration was
finally persuaded to make the bond issues which,
its republican predecessor had at one time
thought to 'bo necessary, but had skillfully
avoided.
fhe claim that the business disasters of
the period referred to were due to the popular
fear of tariff legislation to bo enacted by demo
crats is, as has been said, met by the fact that
this panic bogan two years prior to the presi
dential election day of 1802. The following will
serve as reminders on this point:
November 11, 1800, the reports showed
financial distress in New York. The New York
clearing house association voted its certificates
to banks in need of assistance.
Tho Boston clearing house association did
the same thing November 17. Barker Bros. &
Co., big bankers in Philadelphia, suspended at
that time, with liabilities placed at $5,000,000.
November 19, 1890, there was a run on the
Citizens' Savings bank of New York, and a re
ceiver was appointed for the North River bank.
November 22, 1890, the United Rolling
Stock company of Chicago assigned, with liabili
ties at $6,851,000,
November 28, 1890, B. K. .Tamieson & Co.,
the Philadelphia bankers, failed, with liabilities
at $2,000,000.
December 6, 1890, the Oliver iron and steel
mills of Pittsburg shut down, discharging 2,000
omployes. On the same date the cotton firm of
Myer & Co., of New Orleans failed, with liabili
ties at $2,000,000.
January 3, 1891, the Scottdale rolling mills
and pike works and the Charlotte furnace and
coke works in Pennsylvania closed, throwing
10,000 omployes out of work.
January 18, 1891, the American National
at "$2 250 OOO8118 CUy suspended' with liabilities
iraJMhSpring Garden National
bank at Philadelphia closed its doors, and the
Pennsylvania Safe Deposit and Trust company
mado an assignment. ' y
The Homestead strike and other strikes
talism, and that the men who control its nom
inations will not be pleased to learn that their
party's prospective candidate for the presidency
s opposed to exparto injunctions, to the black
list, and even applauds strikes when properly
SdaCtlonV r wil1 foreanid labor accept the
half a loaf the secretary offers them as recom
pense for the wounds he has already inflS
on their cause. No words the secretary of war
can now utter will placate the lasting antlnaThv
his deeds have aroused in the m d of S
MrTnit h h, ft V0t ?f this were 2SdS
Mi. Taft has but to turn back to a recent edi
torial printed in the Federationist, the official
organ of organized labor, by Mr. Samuel S
pers, its recognized leader. Mr oSmnpS ?n
hat editorial declared unqualifiedly against the
injunction as now used in labor disputes and
gavo reasons, which it is imnnihii '
by Mr laft or anyone else who favors -vZ!
men by injunction." And it may not bf Kb"
at this time to quote the significant worSs Ssed
during 1892, and prior to election day, aro well
remembered by the people.
The record discloses that the first indica
tions of the so called panic of 1893 were given
November 11, 1890, a little more than thirty
days after the McKinley tariff bill became a law.
From that date the panic raged, and while its
effects were felt for several years it reached its
worst stage in 1893, and during the early days
of 1894, during all of which time the republican
tariff law was in effect.
The late Thomas B. Reed after, his retire
ment from the speakership delivered a speech in
New York in which he said: - "Another thing
which led this whole country into the error of
1892 was the history of the last thirty years.
During all that time we have been prosperous."
The New York World called this "cold, colossal
and impudent falsification of history." and said
that it must have astonished those among his
hearers whose memories were more than one
year long. Then this New York paper gave
Mr. Reed these interesting reminders:
"The panic of 1873, under republican
rule and twelve years of high tariff taxa
tion, was the most disastrous and the
period of business depression for five years
thereafter was the most severe of any in
history. It was officially estimated that
3,000,000 workingmen were out of employ
ment. Bankruptcy was widespread. A
tidal wave of ruin and distress swept over
the country.
"From 1881 to 1886, under two re
publican tariffs, there were labor strikes
involving 22,304 establishments and 1,
323,203 workmen, jf these strikes 9,439
were for an increase of wages and 4,344
against reductions of wages.
io'Hr Reed's Party tinkered the tariff
in 1883. In that year there were "9,184
business failures, involving $172,874,000
In 1884 there were 10,968 failures, involv
ing $226,343,000. In thenext year, still
under the republican tariflr and currency
laws, there was a general business depres
sion. More than 1,000,000 men were out
of employment.
"In 1890 the McKinley bill was passed,
an2 ?neoe were 10673 Allures in that year,
and 12,394 the next, with liabilities in each
year amounting to nearly $200,000,000.
The tariff was raised to nearly fifty per
cent, but wages either stood still or de
. clined, while the prices of necessaries ad
vanced The protected manufacturers kept
all their 'bonus' as usual.
"Tramps and trusts, the twin products
of a monopolists' tariff, wore ,practicaly un
known m this country until W(e had endured
uninterrupted republican rule for a dozen
years. " BU
"The worst labor troubles the
bloodiest riots, the most destructive strikes
the most brutal lockouts ever known In any
country have occurred here under the hieh
tariffs bought, made and paid for by he
u iv,1111136 wel1 for Commoner readers to
clip this statement from The Commoner and
have it in convenient form to show to their
ceivea by the Grosvenor claims.
if Mr Taf?PtS?,i ,n S0ncludIns this editorial.
Cooper D 1 S thS he .said at
labor on h in?Caulated to placate organized
to the foHowSi nCti2n q,3estion t him harken
V! ViDg words of Mr- Gompers:
of warntair nS??0!4 be amiss to sound a word
lahoTof lfq intf10.60 Such as seek t0 rob
else.- S not wise t0 comPel its exer-
Taft That onLwi? ?xmcient t0 convince Mr.
luic mat organized labor will accent nn m-
8 sTu es sSchr8 ti0n f SSEs ?n iXr
long line? Lai?pr?po,8es- Labor fact has
Mend and ft i! d t1111k upon Mr- Ta as a
ai id eonaervii pobableJ. tha the reactionary
own na?tv wni ifrCeS t?at now contro1 his
own party will look upon him as an' enemv
on labor'anonTt11?1?' Seorotarr Taeech
taconolualw ,w Jn New York was a most
inconclusive document. The New York Press,
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