The morning star and Catholic messenger., 1875-12-19
scarcIty 81 honey.

dent VINO seems 20 DC Ihu1iti@E Win oSSH~
ing matters. The difficulty in treating
such subject is, after first understanding
1t ones self, to be able to make others under
stand what one means. The articles In
question are very long and, no doubt, full
of profound reasoning, but unfortunately
they are incomprehensible to persons OF
such R calibre as ours, for instance
Persons who know as much as the FreeSsaR1
learned correspondent seems to know,
ought to explain their views to some ono
else who can write them out lucidly, If un-
able themselves 70 do it.
We mako ont Of the last number that the
balance Of trade during the last fourteen
years has been against the United States to
the extent Of over billion Of dollars. All
this, as we'll as the unusual number Of
failures of late yesrs, is attributed by the
correspondent to "rag money"
We fail to see the connection, however,
and must therefore fall back, for an ex-
planation Of the hard times, upon the old
theory of extravaganza in the people. of
course, we do not undertake to champion
any money, 80. called, which is not equiva-
lent to gold, because all such deceptions
must produce miscalculation and loss, but
let Us not perpetuate other evils by attri-
butiDg them to the wrong causes.
The theory of the financial embarrass-
! ment now existing which seems to US most
satisfactory is simply that the producing
class, from some cause or other, became
extravagant, spent largely in advance of
their income, sometimes in excess of it,
III - Oh
while capitalists took panic; they refused
to advance as usual to producers. Then,
e1 neccssitate, producers had to stop
spending money until their revenues
should come in. At the same time the
revenue of the capitalists also ceased, be-
cause their money was lying idle, and
they, too, stopped spending. Money then,
to the extent of all these stoppages, quit
circulating Improvements ceased; new
enterprises were deferred; laborers, me-
chanics and agents were thrown out of
employment stocks of goods remained on
hand unbought and unconsumed produ-
I6ers of such goods were, therefore, de
prived of work also, and, as general
thing, only men engaged in agriculture re-
tanned full employment.
To make the matter worse, agriculturists
were so heavily in debt, as We have seen,
that the money made by their labor, was
not at their disposal to be spent; it be-
longed to their creditors-the capitslists-
and had to be given to them. More money,
then, out of circulation. Thus all kinds OF
work, except tilling the soil, have become
scarcer and scarcer, until everybody who
could get little credit is in debt, aud very
few can pay their debts.
No work, no income and no chance Of
paying or collecting debte, is what is called
hard times.
The end of this must come just as soon a.
producers from the soil shall have paid of
their debts. What they make in the way o
money after that, they will spend. Good'
will sell again and factories re- open, build
ings will be repaired and put up, roads will
be pushed with vigor, mechanics anc
laborers will get work, make money ane
spend it, times will grow easier and capital
ists, finding that, will bring out their money
for investment on securities which they
now scorn, and thus hasten the return of I
plentiful currency in general circulation.
OF course, this theory leaves unanswered
. two very important questions What wa
the cause of the extravagaut habits whicl
b prod uced all this debt and resulting stagna
r ton; and what effects must an irredeemabl
currency produce in the futureS
The worst thing about the greenbac
, system is that its huctuating value enable
? Government officials of high degree
. speculate to their own personal emolumen
% by purposely weakening or strengthenin
b that currency. 1t makes thieves Of person
# who might reaist a temptation Of not q
y safe a character, and, besides, make
II gamblers of hosts of men who call then
r selves gold speculators. 1t tends to cer
10 tralize power and, therefore, ought to
gotten rid of as soon as possible.
n But to suppose that the paper currenc
A. notably induced extravaganza on accouI
.r ;So oloDt;ful0aaa ia evjdantly a miBtak