The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-02
FORCED ECONOMY.

felcitate their friends upon the enormous
benefits which obligatory economy has con.
ferred upon the people Of the republic since
the monetary crisis of 1873 and the subse.
quent period of stringency. For example.
we read in the New York Herald:
The vast economy which was the enforced
result Of the stagnation Of the last two years
begins to tell. Divide forty millions by five,
and we get eight millions as about the num-
Der of families in the United States. all OF
whom have been compelled, during the last
two years, to live on less than they expended
for some years before. In this and other
cities many families have economical to the
extent OF thousands of dollars per annum
each. What the average per family all over
the country may have been it is impossible TO
tell Suppose it to have amounted to one
hundred dollars, and we should have saving
Of eight hundred millions per annum. Put
1t at only halt this great tum, and it is still
an enormous saving, which begins to tell
We read also from the St Louis Repmblican.
paragraph showing how hard times have
given occasion for saving:
The effect has been to depress the feelings
of the people; to stop all speculative move
ment; curtail the amount Of our foreign i'm
portations and create spirit Of economy
such as has not before been exhibited il this
country. Every man, in the midst Of tho un-
certainty and coubt which has surrounded
him, has put the brakes on, and has been
going easy for many months. The sales Of
manufactured goods, in the aggregate. of the
whole country has fallen off Old shoes are
worn for longer time than they used to be,
and cobblers have found more abundant en-
ployment in mending "brOken fO0t-g than
formerly Men wear their coats for a longer
time, and even the irrepressible vOtaries OF
fashion the ladies-haye consented to make
last years silk do some service this year.
This general curtailment of expenses, OK
tending to all classes, it has been estimated.
amounts to an average OF $50 per capita, per
annum, or in the aggregate the enormous sum
of $500, 600 900 per annum. And the cOndl-
ton of the monetary institutions warrant the
belief that there has been an enormous saw
ing, and an immense withdrawal Of capital
from employment The vaults Of financial
institutions are full Of money idle not
taken on the kind OF security demanded, even
at the low rate Of to 81 per cent But this
money cannot and will not be held thus un-
employed for great length of time. When
money holders have confidence restored then
they dare. There has been a gradual restora-
ton of confidence and tho owners of idle mil
lions will ere long put it adriit.
OF the HeralFs eight millions of families more
than one-fonrth, in good times or bad. do not
expend one hundred dollars per annum in
cash, and cannot economize to that extent
Millions of the families of farmers have lived
during the hard times as always, chiefly by
the direct consumption Of their own products.
which form more than four-fifths OF all that
enters into their subsistence. Farmers have
economical because monetary troubles pre-
vented them from selling their crops and pro-
ducts at fair prices. They ate as much grain.
meat fruit, poultry and products Of the dairy
as ever before, and were even less careful to
save their choice products for market. They
bought less from stores because they got less
for their farm produce. They wore out their
old shoes and clothing because the storekeep-
ers could not buy their grain. They, of course,
made less effort to raise large crops and have
had much more leisure time. They did not
spend money because they could not get
it, They cannot be said to have saved
money which they never had. Robinson
Crusoe had no market for the products of his
island. He could not even sell his tanned
goat skins, but he cannot be properly said to
have saved what he would have sold, if he
had possessed o market, for something that
he needed more. He was no richer for his
compulsory economy, nor was he better off
when he "made him q coat Of an old nanny
goat" for want Of something better.
There are two millions, perhaps, OF heads |
Of families who support themselves as labor |
ers, mechanics, or workers for salaries. The |
hard times have cut down their average earn
ings one-third or more. The consequence is. |
that they have restricted outlay in proportion |
and may have expended less by one hundred |
dollars per annum each. They have not
kept that amount of money; they have merely |
not spent it, rs they would have done
if higher wages had given it to them.
How are they benefited by this
compelled parsimony? How is the country
benefited when the added wealth is less
rather than more than in years Of prosperity.
abundance and high pay? All wealth comes
from productive industry. The forced econo-
my spoken Of is only sign that industry has
been less encouraged, less stimulated. and. of
course, less productive Of comfort. improve
rnent, and transient or permanent wealth.
The aggregate Of results of forced family
retrenchment. whether it is $780, 600. 900. or.
rs probable, q much smaller sum, represents
loss rather than gain.
III the econimizing Of Americans in easier
whose incomes have been
decreased by hard times, owing to the dis
coura! ement of enterprises demanding CAPT
tai, and to the difficulty Of making safe and
investments, We fail to see any
resulting good, any addition to tho general
wealth or anything to mitigate the evils Of
business depression, monetary stringency
md hard times Our wealthy citizens have
less money because they have had
ess While other classes have dispensed
with some of the comforts of life, the rich