The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-14
1897 and 1873.

after 1897, return to general prosperity until
1913; and that meantime there was year after
year general and fond expectation that
trade would revive, such as there is now.
1t is true that the crash of 1887 was brought
on by initiation and paper money; all tinan-
cial and industrial crises arise out of expan-
sion of credit leadingsto over-productlon IN
some branches of industry and general spec
ulation- 1t might even be said that the
crash Of 1873 was brought on by proportion
ately greater speculation and over-produc-
! ton than that of 1897 More Of the countrys
accumulated savings went by the board in
1873 than in 1897, in proportion to our
wealth and population then and now, as we
believe; and by that much it might be ar
gued that, as our losses are greater our re-
coyery may be expected to be even slower
But those who would argue thus would
forget that we have now immense resources
and means toward rapid recovery which were
not in existence in 1S37-42. The means of
exchange have been since then wonderfully
increased. Railroads. steamships the tele-
graph are now at hand to give us cheap and
rapid transportation and facilities for the
exchange of products. Also the means for
the creation of valuable products have been
immensely increased Machinery of all
kinds and agricultural implements and
all kinds of labor saving inventions enable
our population to produce more, to create
surplus more rapidly, and to replace waste
and losses, therefore, much more quickly
than in 1887. Moreover, we have had now
for several years fair crops of all kinds, which
have brought good prices. The truth is that
the country is not suffering any longer from
poverty. Some of the great industries are
Frustrated, mainly those of coal and iron but
even the iron industry is slowly reviving
and it suffers to-day nearly as much from
important changes in the nature of the de-
mand as from lack of demand. For instance,
we have certainly stopped building railroads,
and this lessons very much the demand for
iron But also almost all our railroads now lay
down steel rails to replace their worn tracks,
and this is especially distressing to those
rolling mills which produce only iron rails.
But in the main the country is no longer
stagnant 1t is noticeable for instance, that
in the political campaign in Ohio, where
every conceivable argument is used by the
democrats to win the people to their side, it
is mainly in the iron and coal region that
they talk about the hard times Why? Be
cause the farmers are not suffering because
the various manufacturing interests of Ohio
are, in the main, prosperous because for
instance, some of the agricultural implement
works which employ SO much skilled labor
in that State have more orders than they can
fill because even the lumber trade is slowly
reviving.
The country is, on the whole, doing
very well. What is needed is confdence-a
belief that what is will continue. Nobody
who has money is willing to invest it in new
enterprises. Capitalists are cautious; and
they are right, for we have not come to
stable condition. Such enterprises as would
give full employment to the great amount of
capital which is lying idle, or is let out at
low rates of interest all over the country, re-
quire time for their development. A prudent
man looks ahead and asks himself what will
be the condition of the country in two, in
four in six years, and he finds it impossible
to decide. Here, for instance, is the South.
To believe the principal organs of the repub-
lican party, the South is to-day planning an
other rebellion it must be kept down by
main force conspiracies are Matching, and
such republicans as Senator Boutwell, and
Senator Morton gravely assure the country
on honor that affairs look very serious in
| deed we may have bloodshed at any time.
| No,v flic 10 trina avarv man who hoe cyot
| hundred dollars in the country had better
turn it into gold and lay it away in stock
| ing, and capitalist would be an idiot to in
vest in anything except bread and butter and
second hand overcoat. Of course it is not
true-it is all balderdash. But it alarms
capital, which is easily alarmed and
this is one Of the main causes why
trade languishes and new enterprises are put
off from year to year. There are democratic
journals in the South and republican jour
nails in the North who combine their efforts
to keep up this state Of aiarm-the one by
silly threats and bravado, the other by care
fully copying every foolish article and mag
nifying its import. Meantime demagogues
and self-seeking politicians use this to main
tain policy toward the South which is in
furious, which unsettles the people of that
section and does great deal to interrupt the
systematic development and progress Of in
dustry in that part of the country.
Then, again, here are the democrats in Ohio
demanding imitation; the democratic Gov
ernor of Kentucky proposing 10 pay the
bonds in greenbacks; democrats all over pro-
posing all sorts of ridiculous paper money
schemes. Of course they will not succeed.
The country is honest; and he who appeals
to American farmers and mechanics to cheat
their creditors is pretty sure Of defeat. But,
meantime, all this alarms capital If it we're
probable that such people as Allen and PEN
! dleton could succeed in 1876 every man vho