Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-02-27
About 1.-The Hard Times"

OF lHot, the currency panic OF l>0t- anu llle
capital panic Of 1873. The latter only was
discussed, and that to explain why
times are hard The speaker, Gen. +.
a. Walker. who will be remembered
here as the late Superintendent of Census,
combattel in tile start the idea that labor
and capital are all that Is necessary for the
production of wealth. He maintained that
in an advanced Industrial society labor and
capital instead of being partners in prOduc-
ton and sufficient OF themselves unto pro-
ductiOn are both the hired men of a third
party, the dcspOt Of industry on whom il
depends, very much irrespective of the
wishes or the needs of capital or labor.
whether the production of wealth shall 90
forward. at what rate and in what direction.
This thirl party is enterprise.
Referring TO the condition Of Iaboring men
hundreds Of thousands in the country being
out Of employment, the question was asked
Why they 90 not combine But they know
that a combination alone will not help them.
They want employment from those vino con-
troll 1t, Tut 10 i not profitable now AMI the
middle men cannot give work. Capital is in
much II same condition. It can do nothing
Of importance in itself. IL can lower its rate
per cent Ter aunum. bat, ifcutcrpTiSc refuses,
even with Ibis induccment. capital can do no
more. Capital cannot go into business on its
own account when. in the hands OF a skilled
business man, il cannot be employed at a
profit. In the credit panic of l>s1 the paTSOn-
lei az almost every trade underwent extern
i've changes, down TO hopeless insolvency
and mutual credit largely disappeared.
Speaking roughly, the whole country was i'm
liquidation from ISIS to ISf0 10 il a question
whether outright bankruptcy would not in a
majority OF cases have proved better for the
creditor and the general community as well
rs Cor the debtor. The train was wrecked
and directly across the track. Ii is doubtful
whether in the pitiful attempts to save the
pieces, there was not a loss to the nation OF
precious time, energy and courage.
In the panic of iS51 the mischief was not
nearly 50 widely spreaI, the established
agencies Of industry and trade were impaired
in a far less degree, and the organization of
credit underwent much fainter shock than
In Isl. When the panic began, in Septem-
Der, the country was in far better condi-
ton, mercantile credits were much shorter;
the habits of business were markedly better
and the domestic expenditures OF the people
were more consistent. So the revulSion
though sharp and severe. was brief in du-
ration The nation promptly charged Its
oss and went to work with no great inter
Tuption of labor.
BY the first shock of IS75 the ordinary
agencies of business were permanently i'm
paired to but a slight extent, and the per-
sonnet of business underwent scarcely a per
ceptible change. The average term Of mar-
camille credits was far short OF what il was
In 1851. The habits OF business were far bet
ter. The banking institutions of the country,
for the first time in our history, constituted
system of reasonable consistency AMI sol
ldity, looking at them only IN their func-
tiOns Of deposit and discount. not as manu-
faeturers OF paper currency The complete
Ofpr mic
telegraph and express, enabled each man. in
his exigeney, TO at once know the worst and
do the best. The capital that was immedi-
ateiy affected by the catastrophe OF Sep:em-
her was, in the main, surplus capital
invested in what were, 10 the owner
outside spoculations. The greater portion
of il was the subscription Of the
wealthy, out of the excessive profits of the
ten years preceding. a portion was ths con-
iribution of other Classes, clergymen. widows
and CTIEans, called out by vigorous
advertising of family week.-Mrs. and religious
journals and the testimony Of fublic Junction
aries. Very little OF the capital involved In
the CONFUSION of that autumn was msrcan-
tile capital The commercial classes were
greatly embarrassed, paid out much extra in
terest and lost much anticipated profit but
the real destruction, in the autumn, was
confined to speculative Industrial enterprises
EdiitCdis CtlltI " WHICH nal been undertaken
in reliance, wholly, on the grace of adver-
Using, the virtue of lying and the gullibility
ola people made wantc,fby e ficticious pros
perity and suffering the illusions of paper
money. With these went Some burles1ue
banking houses. But the bankruptcy of
banking institutions was less than per cent.
of the whole number in business and most of
those that failed were small houses which had
been running bShindhand I'm previous time
and whose weakness was not dine TO the hard
times. Very few frst-class houses went
Gown in the panic.
The mischief cause. by the panic during
1873 was comparatively slight; our natural
resources are abundant; our national temper
elastic. Why then. IS there not a revival of
business one cause of the continuance of
the hard times is the state of the currency;
but this is rot the principal cause. and there
'5EoTeasOn tOdOubt, that even withT our pres
eE. currency, we may again see labor as ac-
lively employed a in 1Ssa and the years fol-
lowing, when the currency was certainly no
better than now. The political condition of
the South, interfering with trade and pro-
ductiOn. has also something to do with the
continuance OF the hard times Again.
another cause OF this continuance OF the hard
times, Is found in the fact that a change is in
progress IN the habits of persona. expenditure
among our people. IL is too familiar fact,
that ten or twelve years ago, there took place
throughout the North and West. and especi-
ally in the eastern states. a rapid and wide
extension OF luxurious expense. Much of this
came from wealth which should have been
added TO the Improvements OF the country,
and most of this expenditure took the form
OF whatever was vulgar, loud, coarse and
bold.
Coming then TO what he called the chief
cause OF the continuance of the hard times.
Prof Walker strongly urged the necessity of
a fall Of money wages and in the price of
many kinds OF goods, and argued that con-
sumption cannot increase till there is such
fa-l. He stated at some length the formerly
received theory that labor and wages would
adapt themselves to each other, and COM
batted IL by illustrations OF actual cases.
The source OF relief was thus stated: After
a long pondering Of the question, and the
widest survey have been able TO command
of the field ofAnerican industry, with care
full comparison OF prices and wages at suc-