Rensselaer Republican, Volume 24, Number 10, Rensselaer, Jasper County, 5 November 1891 — CURRENT COMMENT. [ARTICLE]

CURRENT COMMENT.

CHEAP SILVER DOLLARS. An Ohio banker, who is in Washington for a few days, told of an incident in connection with his business which ought to illustrate the evils of the free coinage of silver so forcibly that no one would advocate the theory. {‘A Chinaman came into my bank the other day,’’said the banker, “and wanted $240 in exchange on Hong Kong. He said he intended buying some goods over there, and could use Mexican dollars the same as gold as China was on a silver basis. He asked me how many Mexican silver dollars I would give him on Hong Kong for the money laid by him on the counter. Mind you, a silver dollar of our country is on the same basis in Canada, China, and for all I know, every other country, with a Mexican dollar. I looked at our daily exchange list, and told the Chinaman I would give him in Hong Kong even three hundred Mexican dollars for his $240 in our own money over my counter. He took the exchange and made for himself S6O, you see, while at the same time he paid me a discount of sl2. In other words, he got a gross profit of $72 in Mexican silver in Kong Kong, China, for $240 in Ohio. ■'Now,” continued the banker, "you can see what free coinage would result in for this country. China has a silver standard. She has no gold. It has gone out of the country for foreign silver. It would take foreigners but a short time to ■ supplant our gold with then’ silver dollars, worth now but seventy-six eents each. Even a Chinaman out in the wooden country of Ohio could see the point.” IMMENSE HOSIERY-MILLS. Fort Wayne, Ind., Special to the Indian ajxilis Journal. It is not generally know that this city promises to become the great center of hosiery business for the United States, but this is really the case. That, however, does not tell half the story .jOne of the wise provisions of the McKinley law was to fix a tariff on certain styles of hose not manufactured in this country, but which it was declared it could and would be produced hereafter a fair duty had been placed on the imported article. As a result of that duty, the Warne knitting-mills have been started in this place. Should the industry prove successful it will induce a number of people to come here from Germany to come here with their machines, and the business will rapidly develop into a great enterprise. As was said before, this is a direct result of the McKinley law, and -will ere long afford employment to a large nufeber of skilled workmen. The goods to be turned out are known'to the trade by the sober title of “full-fashion” hose, which at once suggests to the feminine mind a brilliant array of dazzling—ahem! what-you-may-call-ems. decorated with vari-colored bars, stripes, checksand zig-zags affected by fastidious Parisian boulevardinenes. These goods have heretofore been imported at cost that precluded the possibility; -of possesion except by the wealthy. With the American industry well started, the price will soon be within the reach of all. There are now in this city twenty-five imported skilled mechanics, with their families, to look after the more important features of the work, and assist in teachifig the trade to American workmen. Three of the house machines which are to be used at the homes of the employes of the knitting-mills have arrived. No d uty was paid upon them, as the Treasury Department has stated that any man can bring to this country the tools and implements used in his trade, duty free The machines were purchased in Chemintz by Theodore Thieme, who is at the head of the new stock company. Others will be imported as the demand increases. The new mills begin operations with seventyfive hands. LET THEM. IF THEY DAREThe Democratic gains in the last 1 Congressional campaign were the re- i suit of three predictions, in the ac- ! complishment of which too many ! people put faith. It was prophesied ' that the - tariff would increase prices, k . in ports and exports, increase the revenue. It has been in operation eleven months, and everybody knows that prices have not undergone increase; there is no need of further argument or evidence on this point. The Democrats themselves have ceased to Wk about “higher prices on accoi nt of the tariff.” , Prices, as a rule, are lower since the ) passage of the McKinley bill. The official title of the McKinley | bill reads thus: “An act to reduc' the revenue and equalize duties on ! imports, and for otjigy purposes.” ) Eleven months' operation of the bil? ! proves that it has accomplished itc | first and main purpose, “to reduc< the revenue.” The report of Majo** Brook to Mr. Foster, Secretary o f the Treasury, shows that the” decrease M the tariff revenue during the first eleven months of the operation of r.he bill is $41,396,425. So that the Democraticprediction of increased revenue “on "account” of the tariff,” was as false as that of "higher prices.” The Democrats not emh’ affirmed that the pew tariff Would lessen the volume of our foreign trade, but also w rote aiv ? spoke very vol um inpusly in, proof of the proposition that it equid not help lessening it. They assured us that foreign nations would not buy from us if we did not buy from them, and constructed theor- <' -I

ems and syllogisms and logical oat’scradles of wonderful ingenuity in Sroof of their assertion. But the rst eleven months of the new tariff’s operation our foreign commerce has increased to the extent of $74,168,639. That is to say, our exports and our imports, which make the total of our foreign commerce, amounted to $1,529,013,627 during the eleven months immediately preceding the passage of the new tariff bill, and to $1,603,781 ;266 in the eleven months immediately succeeding. .... The Democrats further said that the new tariff was an increase of protection to American industries amounting almost to a prohibition of foreign imports. But in the first eleven months of its operation 47.78 per cent, of all imports to the United States came in duty free. The per centage of free imports during the last eleven months of the operation of the old law was 34.27 per cent. So that already the McKinley bill has increased the volume of free imports by 13.51 per cent. During tfie five monthsbetweeiiApril 1 and August 31, 1891, the percentage of, free imports was 55.75 per cent., which is the largest percentage of free importations in the history of this country.

But, large as has been the increase of our imports since the passage of the McKinley bill, our exports have grown with marvelous rapidity. They exceed our imports for the eleven months under review by the enormous sum of $77,360,365. In 1889 our imports were greater than our exports, and we had to send gold to Europe to pay the balance of our indebtedness that was not liquidated by our exports. In 1888 we sent $28,022,607 abroad in payment of our debts. This year we shall receive something near to $100,000,000 from foreign nations in payment of their indebtedness to us. These are the figures; study them. These are the facts; ponder them. These are the results of the McKinley bill. WAGES IN EUROPE. Portland, Ind., Special. Mr. Isaac Silvernale, for twentyfive years a member of the wellknown dry goods firm of Kirshbaum & Silvernale, this city, has traveled all over Europe in the last eighteen months. He has investigated the question of wages paid to laboring . men in that country, and noted the effect of the McKinley tariff bill on Europe. In writing to a friend here he points out the disadvantages the foreign manufacturer labors, under, and the advantages to the American manufacturer and laborer under this bill. He reports a number of large factories closed, and the manufacturers and laborers in shops discouraged, their only hope being the repeal of the McKinly bill. Mr. Silvernale writes that the wages paid labor are about half those paid in the States, and he believes that the effect of the law will be to make the United States the -most prosperous country in the world, and labor the best paid of any. Mr. Silvernale is no partisan in politics. He is independent, and in 1884 voted for Cleveland. He returns to the United States a high-tariff manpand predicts $1.50 for wheat before the next crop, owing to the great scarcity in Europe. BENEFITS OF THEM’KINEEY BILL New York Correspondence Philadelphia Press The great jobbers and commission agents in the dry goods district were somewhat astonished this afternoon when they received their copies of the Dry Goods Economist, which is the trade organ here. This staid and conservative journal was blazing in the glory of the American flag and sensational double-leaded editorials. These were tributes to the protective system and to the McKinley bill, and there was a more substantial tribute in the shape of a lengthy news article, in which magnificent acknowledgment is made to the power of the American system to do great things for this country. This journal, at the time the Me- ■ Kinley bill was under discussion, was not over-sanguine about its results. The paper loaned toward the protective system, but was a little inclined i to class itself with those so-called i moderate protectionists,who thought the McKinley tariff erred where it increased the customs duties. Today, however, the paper makes practical acknowledgment that all that was claimed for the protective system is, at least so far as a certain prodigious branch of industry is concerned, verified. After many days Of, most patient investigation by men who are both experts in the dress goods trade, and who are also competent trade journalists, the Dry Goods Economist gives the results of these labors with these demonstrations of rather exuberant joy. The dress goods interest is an enormous one. In the aggregate it represents hundreds of millions of dollars a year. Upto a short time ago it was believed that American mil's could produce,only the cheaper dress fabrics, and not a good quality of those articles of popular demand which are known as cloth or woolen goods, and which have so completely supplanted silks and other fabrics formerly used by women for street and every-day wear? The great bulk of these goods was imported from Europe. American manufacturers could not compete with European houses in >espect to prices, and it was asserted by those who believe with Mills and David A. Wells and Frank Hurd that protection is a curse, that these American manufacturers could not compete in quality, in design, or in perfection of the fab ric, no matter wnat amount of pre tection was granted them. Nevertheless, these investigations

of the past ten days show that such assertions were full of fault. The American manufacturers this summer have been producing a range of goods, within a few days submitted to the trade, which is simply magnificent. The Economist, in writing of it, says: “It speaks volumes for the progress of the United States in textile manufacture that such a magnificent range of samples is now submitted for the inspection of the trade.” In talking with one of the experts, the chief of those who inade this investigation, a man of thirty years’ experience and without the slightest interst in the matter, except to get the facts, he said that therexhjbition which is now being made in New Yory city of these products of American textile manufacturers’ looms is simply stupendous, and in all his thirty years’ experience he had seen nothing to compare with it. The quality of the goods is fully equal to some of the best European manufacture, and when, after a few years more, the Americans, with the encouragement they are now receiving, are able to add the “patient art of the foreigners in design,” the market of the world will unquestion-

- ably be theirs. In richness of coloring, in skill and attractiveness of combinations and mixtures, and in variety which is almost bewildering, the exhibition is well worth a trip of many miles to sqc. A very significant feature of this splendid and unexpected developement is the fact that many houses which have hitherto handled almost exclusively European importations of dress goods are compelled this year, to save their trade, to make offerings of these American goods. Some of the greatest houses in the trade have this year paid their acknowledgement to the victory of the American manufacturers, and are revealing magnificent samples of American workmanship with all the delight with which a bibliophile displays a rare book. Figures tell the story, too. Last year the importers of foreign dress goods, woolen cloth, imported nearly 85,000,000 yards. This year the importations are only about 44,000,000 yards, these figures being taken for about seven months, and the difference in cash paid was $1,250,000 less this year than last. The Americans are showing, too, in this new development greater technical skill than was ever displayed. Some of the designs are beautiful, and none of them will merit that contempt which used to be bestowed upon American goods the stripes and plaids are said to be as fine as any goods imported' from Europe, and in Bedford cords and homespuns the American work is np to the highest standard. In respect to prices there is but little difference between the figures for these goods and those for. foreign importations. Jobbers and retail dealers say that women who are seeking dress goods buy what they want and what they can afford, and if an American pattern and fabric suits them better than a foreign, they will take it, even though t*hey have to pay a trifle more for it. The impression in the trade is, however, that, owing to this splendid stimulusproduction will be increased, and natural and legitimate home competition will utimately bring the prices below anything that can be charged for foreign importations with reasonable profit, or, in other words, just what happened to steel rails will be the experience with dress fabrics. This extraordinary interest in American goods and the great popularity which they have developed with the trade, assure a season of! very great activity in all textile manufacturing centers. Some of the manufacturers expect to ificrease their plants. Some of them cannot begin to respond to the demands, made upon them, and all of them are looking forward with great rejoicing to a season of prosperity which will be in marked contrast to the comparative stagnation for the past few years. You will find none of these great commission-houses whicli are handling these goods now uttering a word' of complaint against the McKinley bill, and yet a year and a half ago, when the bftf was pending, a great cry went up from from some of these importers that their business would be ruined if this bill became” a law. It is a magnificent demonstration in one department of industry of the soundness of the principle upon which the McKinley law is built.