, 1876-09-09
HARD TIMES.
Their Causes, Their Extent, and
Their Remedies.
David a. Wells Address Before tho
Social ecience Association.

At the earatoga IN. ~ meeting Of tho Social
se1cuca Association, Sept. i, David A. Wells
delivered an ad,ircts on "Our rrcfcnt lti1us-
trial, Commercial, and Financial Policy" We
make tho following extracts:
WAGES, IkrEnusT, AND CAPITAL.
The average product ot labor n tli9 J.. United ~
as IL proved by the circumstance that tlle aver
arc rate Of wages and the average rate Of inter-
cit for many Years Inns been high. IAc people
Of Tho United States have been tauEtt that re
ezlsting high average waEea aro the results
nainly Of lrgtslattolit mud tliat It is desirable
also to endcaror TO reduce the rate of interest
by some other methods than the tncrca6o Of
capital. But large product md high waKes, and
rocals which. III community csscnt,nly free,
icgisiation 70 powerless to materially alttF: The
friend If the people who annually lises IN ti.e
American State Legislatures Rt,a proposca to
enact legal measures looking to reduction Of
that If hc could l'e eMcccbsfu1 iii wl,nt he pro.
poses, 1c. would ot the samc time inlllct most
to be successful have got to ride the satne horse
aud any treatment In FREQ community
which isnpars the quality Of thc ANNUAL ior caf. e.
nE Ev ens eaF w tne no s soyon ssnaa 81 rs
III reference TO The supply Of capital Is very dii
fcrcnt from what It was only comparatively
few ears snse Now that IT itsa ins 1--we
ETnp[l. AIu LtlS ulltudlDl VI MUM NAkH "1F-
niale nations geographically remote eomn!cr- M
chilly near, aud the amount Of the Woflae @ nct-
ivu capital that any nation may command u I'M
tied only BY the con)oint remuneration aI1 g.
for tic security Aof properly and the inrcst-
rcnts Of capltal, and the ril(ccnt enforcement
of sucl, laws, arr, thcrefore, as essential iistf
mena:les for nsur5S te se ar odc r e
veioplnent Ind better be stricken With fnnino
and pcstilouce tlan with policy that itl'paats pat
tass M sssfy srs1 81 ssF 81 RefuS e uSea staes @ @
doubtless often failed to rightly use tae @ trusts
and privileges granted them by the public for tho
bust interests 81 tile public, when State like
grievances, assumed tho right to arbitrarily dx
irrlghts and fires on tho railroads by her
chartered, At such rntcs as rendered. suell
esuted the labor and capital that created It. slia
virtually appropriated private property without
returning an equivalent, and brought On herself
and OIL tho country calamity much greater
for, tl.croupon, an understanding was Instinct.
lively or Ill agreement arrived at OH the pnrt OF
the owners controllers Of active capital evcry-
where, to have no dealings With Wisconsin ur
be submitted to her courts or Legislature; anil
to-tlny Wisconsin is tn such adegFec cut Oft FROM
tho eapital Of tho world, for the furthcring af
2lcr material development TINT 1t she would ct1-
her own resources, or ny for other callita! sucll
ruto of insurance against bat1 faith, lii addition
to the ordinary interest, as will greatly dimiuish
the profit Of using 1t.
Tho question OF tlie amount Of captta!, tho
results Ut the accumulation Of THEIR own lnbor,
available to tho people Of The United Suites
Lends to discussion of the comparatlyq wtnltl,
product, thu unliital net gain ovcr all axpei,li-
tures that Is available for use rs ,lcw capital IN
tho work Of production, aud tic per capita Of
eeua of atsh sou e er
annual income Of tho United liinglam Of Arcat
britain M M(EmMgand, M Ireland, SCOTLAND, md Malcsl
TIC dornnn Empire, $,9s5, ,00o, ,vUsG;.oi Xust1ta,
s,0U0, 900 600; md Of Kussia, t5,50O, ,0JO, ,VJ0
These figures rcprcsent the grosa atauua! income,
o tic original earnings, ont Of which ths M.
tian provides fuol and vlothIng, and puys all
taxes nnd expenses, aud savea i0r llrw ctpllul,
being a''ott onc-fuutth less. - = =
aly own opinion, nfkcr very careful exas11tna-
tlon OF the subject, is tt1at from 1S0 to 1876 The
amount of European cupital drawn to tho
United Rtatcs ibr luana or Investments, oxuu-
sive Of ail Federal transactions, has averaged
about sl00, ooo per annuln, which estlssiato,
II corrcctt would Indicate an amount OF nOlnfunl
foreign indebtedness, Including Federal loA1ls,
mitch fl cxcsss of tho amount reccntiy estinln
ted ~ tie officials at Washington, The people
II a rsare siss s av ays ss a sns
Tho War large advantage from tho tlse of for-
cigu capEtai to assist IN their mnter!af eye1ols
Inent and also tliat they hnvo not bud It sali-
cicntiy cheap, inasnIcll US thoy laye titus far
ia.Ee proportion Of 1t, aud probably never Will.
ANNUAL sAylN0s.
,1n regard to Low much of tho nnli'al product
Of TIE country can bc, even under The sntst (a-
vorubie circumstances, savcd ind 1hnie available
as nGw capital, there IL, l hardly nccl aaY, no
absolutely reliable data Tor forming M estimate.
II We Should assume tho annual nnt product
lis $5,ooo,ooo,Mo, and tint this sun. WIS
equally npportunctl at,lulg tic tI,cn population
vi $685. QUO, thc avcragc lnvollu Of caet. per-
bgtl, U tho nveraso slArc 10 cnch individual of
been about $50 per luad, or at The ratc Of $U5u
per tnMy, usstl1i,ing, rs tlo tcnsila tiocs that
eae! fa,rl'y cnlls!sts ot ilyr. But, as ,,nny in-
ayltlI,als an'l families rccetvs mnctl more linn
tl!s, 1t, oi course, nrcssitatps that very many
more shall receive pro|n'rtis'nnly less. Agalll,
II wo ass1'.ao s5,00U,Nj,NN Us tic net value OF
r nar una..al prnuct, nnl 10 per cent of this to
u the wi'oc Ecel'Ic, end tietraying all cxpcndt-
lures Tor rlcntion, n1Huscrirnts, wear As.i trar,
k,!d taxes, tie ng1reEato 0i thu annuul savings
nt the llntton will nut lu In excess oil G5uD 0tK-
WI are warranted IN nuhing nnlor the ,nust ta-
yorahle circumstances. llnw snail must be tllu
net eutl1 10 ll'e natlo,,s wealth In those yeury
~lcnn single nisht--as NJ Chicago aad i,oston--
INSTANCE ut $llS,U0u,GO0, und IN tho other nt
S,o"nN Nv; when curp"rate enierpriso Of Every
knd lanEusIaes, or Is vo!atetrd without
saraIug rtatscs, deprived Of thy opportunity Vt
following rcSuiar productive fndistsies, cur
ttEual!y nnh lirgcly subtract from tho htorc Ut
fonner accumulated product, Ii, place ol, ss
usual, continually adding to It. Americans
save inr lcts rrnpnrtolla!ly than either Frcnch,
uermlu, Or British IN iact, Hational wastu-
especially Il, thu using uf all foo4 p,luu,ts,
lumber, csml, anu athrr like .'atcrlals~las l,u
Cnnae u ,,ntfo,nl characteristic, a1d Invariably
nttmrts tito attention u Ill Foreigners who
6iudy utlr social cGu,lOlny.
LOSS OF CArlTAl. TIN PRIME soUMCK or DIS
TultJANCE.
l'nt moro Enpussant lntlnence than any
Other N producing the present ali but iinlycrsna
ls!uustrla ami commercial depression IL tbs ug'
EsrEata loss OF cAptal which, contingent
on various ctrraMstafirts tho world for tt!s
!ass. III OF IL years Inns Icon experiencing.
huce tlu outbreak Of our wAr in 1s6l
TIC national debts Ut the world hnvu been In
sfeaacd by a...n larger than $4,000. .000 ,b00;