The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-05-13

remedy IOr his uls0dScs
Our Business Depression.
Business depression is the subject of
universal lamentation. Every case OF
financial embarrassment, every mercan-
tile failure, every assignment in bank
ruptcy, is at once. attributed to "busi-
ness depression" But then failures,
assignments and bankruptcies not unfre-
uuently occurred when business was not
depressed. They were not uncommon
occurrences when business was in Its |
liyeliest mood; when the general strain |
was not so much to meet payments as 1t
was to fill orders. 1t will not answer,
then, to ascribe all manner OF miscar-
riages in business to the single cause OF
business depression. Other causes there
are, and always have been, and always
will be, for these failures and misfor-
tunes among business men. 1t behooves
them to look about and find out these
causes. They must learn to be honest
with themselves, candid with their own
condition, in order to remedy the mis-
chief from which they have suffered;
and not proceed to doctor for the wrong
disease.
When the question is propounded as
TO what causes the depression in bus1-
ness which Is SO fruitful OF lamenta-
lions. it has been the custom Of late to
charge all upon our currency. system.
but why upon the eurreneyP Because
of it's fluctuations and instability, has
always been the ready answer. But,
has the currency been ductuating and
> anstablea For three years past. the
currency upon which our business is
predicated has not fuctuated to the
measure OF more than two cents in the
hundred; and even that never by any
sudden or spasmodic change. Withthat
currency every man could pay every
debt without rebate or discount More
pyer. even in those times when business
was at its briskest condition, the cur
rency fluctuations were much greater
than in its periods OF depression.
There has never been time when the
currency of this country has not been
pubject to fluctuations; not even when
coin was the ostensible basis of Sbusi-
ness. The banking currency OF the
hines before the war was invariably IL
able TO discounts and arrangements
vastly greater and more sudden than
any we now experience. And yet In
those times business was lively and
prosperous. Men traded then, as now,
npon the basis of the currency in
common use. That currency was more
unstable and unreliable than the cur
rency we now employ. Then, the cur
rency of ono State would not pass a
mar in another State. Now, no sucf
Hisagreements exist. The standard 10
the purchase and sale of commodities u
the same throughout all the States
Granting that it is not gold: it neyerthe
less holds a relation to gold that ]
practically fixed and uniform; an
therefore serves every purpose of
standard of values needful for busines
transactions. .5
!. In view of these facts it would appea
that, to charge the BUSINESS depressio
Of the country upon the currency, woul
fbe Illogical and absurd. But then 1t
sometimes said that it is not SO much I
che nature 81 the currency as upon II
. scarcity that the depression in bushes
Is chargeable e:-The currency is goo
enough, but we want more OF 1T. ~
how can this be true, when 1t is o fac
that the amount OF currency already eS
kant is greater than can find proftabl
employment In the business of the cour
sry! Men controlling capital must cei
kainly be credited with common sense
Men as with the common impulsein th
nse OF capital; and that is 10 put it
profitable use. Still, such men are \
surning to the srreasury the currene
Ehey might proftably use were there
demand for its use by the business
the country. This is called contra
kion of the currency. Il is SO: but 1t
contraction proceeding from lack OF us
and not from any necessity Of law. 1t
precisely such contraction as the me
chant or manufacturer resorts to in ]
huclng his stock Of goods that he Q
not proGtably sell. .
furthermore. were this business