The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-04-01
sp1Rzr OF TEE PRESS.
Editorial Opinions ofthe Leading Journals
upon Current 7 topics Compiled Every
Day for the Evening Telegraph.
THE CAUSES OF DULL TIMES.

THE CAUSES OF DULL TIMES.
From the Chicago Republican
One of the most notorious facts is the
stagnation in business throughout wide
spread portion of this country. While mo-
body doubts the fact, thousands differ about
the causes. We have our own opinion on
this question, and here are our reasons for
the faith that is in -
In 1865 McCulloch instituted his policy of
contraction. He burned many thousand dol
lars of currency, and thus very materially
reduced the volume of the circulating
medium. A cry of remonstrance came from
the people, and his restrictions were brought
to close by Congressional enactment. De-
spite this stoppage, these had accomplished
certain extent of their mission.
This persistent effort to get back to a re-
sumption of specie payments was accompa-
MED by a variety of influences leading in the
direction of panic. There was not only an
enforced but a natural contraction of the
currency. While Secretary McCulloch was
burning up millions of greenbacks every
month, the area over which the currency was
spreading was very largely increased. For
instance, the South had few banks and little
of the circulating medium of the country.
California contracted payments on basis of
gold. The Pacific Railroads were not yet
opened. Greenbacks and national bank
notes were confined within restricted limits.
With the cessation of hostilties between
the sections, came O dispersion of the cur
rency, whose other name is contraction.
Regions which never before had contained
dollar of greenbacks, soon absorbed every
dollar of national currency of all sorts they
could attract. This progressive movement
brought about a stringency in the money
market. 1t became difficult to borrow
money for reasonable commercial periods.
The tendency, more and more, was to loan
money on call This custom, however, made
it m ore and more difficult for business men
to carry their burdens. The inevitable conse-
quence was that they curtailed operations.
In doing this various employees went out
of situations These became competitors at
once with those who had places. At once
ensued a competition for the sale of services.
This of course operated to reduce compen-
Sation. AS each person was crowded out,
without resort for subsistence but the sale
of his services, the war on salaries and wages
accumulated Moreover, the purchasing
power of the community was, at the same
time, diminishing Every one deprived of
the power of earning livelihood was ne
cessariy abridged in his power to
make purchases. All this, of course,
meant falling off of trade There
was plenty to sell, but there were constantly
fewer and fewer buyers. Such is increasingly
the condition of the North. Thousands upon
thousands are without employment, and the
number is regularly augmenting without the
prospect of diminution. There is a compe-
tition for the sale of services, and this COM
petition grows constantly stronger and
stronger Here we get at the secret of the
dullness of the times Men who have no
money cannot buy; men who canno3 find
employment cannot earn money; men who
have no money and cannot earn it are in no
condition to be purchasers of commodities,
81 fNrC nIntin fnr Ntir,,
Under such circumstances it is impossible
not to have dull times.
Meantime, the South, so lately desolated
and almost bankrupt, is prosperous. Why?
Because there competition for the employ
ment of service is taking place. The great
cry is for laborers. Every person who seeks
it can find labor, and reasonable compensa-
tion. In various parts of the cotton belt,
negroes are able to accumulate from $500 to
$4,000 for one years work, as their share of
the growing crop. 1t is because labor is
scarce and high. These persons, at best, are
only skilled farm hands, conVersant with the
culture of the fieecy staple. While they reap
a harvest of returns upon their daily toll
thousands in the North stand upon the verge
of suffering, perhaps almost of starvation.
While there is plethora of laborers at the
North, there is lack at the South-in other
words, in one section, there is a competition
for the sale in the other, a competition for
the employment of labor.
1t may be asked, why do not the excess of
laborers in the one section seek employment
in the other section, where there is a lack ?
We reply, because there is no means to ex-
change localities. The man who has not one
cent in his pocket is in poor condition to pay
for the warm meal he needs; so the man
who has been weeks out of work is in poor
condition to seek new scenes of employment.
Here we get at the secret of dull times
The purchasing power of the community.
compulsorily, has been signally diminished
Wholesalers cannot sell, because retailers
cannot sell; retailers cannot sell, because GUS
toners have no money with which to pur
chase. Reverse these conditions Give en-
ployment to the idle; pay wages to those with.
out work, and the purchasing power of the
masses. will be increased. Then, the man whc
is now impecunious will have something tc
spend; from these purchases profits will flow
in upon dealers; retailers will patronize whole
salers and so the movement of recuperatioI
will go on, from the bottom to the top.
Dull times, then, are not so much due t.
over-production, as to inability to consume
Set in motion the influences which increas
the circulation of commodities, and imme
diately we shall have an accession oi pros
perity.
GAMING AND COWHIDING.
From the N. Y. Tribune.
mn