The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1877-09-27
HARD TIMES.
RESUM PIT ION NO
REMEDY.
RAILWAYS. AND THE
CURRENCY QUESTION.
Some Valuable Suggestions
BY M. M. HOOTON.

Many people believe, now that the
premium on gold is reduced to four
and one half to five per cent, that
great prosperity for railways and the
country is in the near future.
The gradual reduction of the gold
premium from $.S5 1-2 on the 4th day
of July, 1864-at which time the pre-
MUM was the highest-has been q
source of unceasing comfort to those
who profess to believe that the pre-
MUM on gold was in some mystical
way connected with the hard times.
Many Of the large corporations of
this country are managed by men OF
undoubted ability, who have not in
quired if this theory il true. On the
contrary, they have accepted it un-
questioned.
/ This is the worst error they could
have committed. 1t has been source
of more embarrassment to them than
all else.
Believing as they do that the mar
gin on gold was the cause of the hard
times, it was natural that they should
try to reduce it by supporting the par
ty which promised to reduce the mar
gin most rapidly, regardless of the
means employed for that purpose.
The only means known to the or
dinary politician by which gold and
paper money can. be brought to par
under such circumstances, is co"trac
ton of the volume ofthe paper. Hence.
when the political hucksters, likeJ ohm
A. Logan, who learned their political
economy in two hours" cried out for
contraction of the currency, large
percentage of these corporation man.
ayers approved their policy aud threw
their heavy infiuence in favor of the
election to office of men holding these
views. Through their influence the
elections in many States have been
determined. The results are too mo-
mentous to pas without the most rigid
scrutiny.
We all agree that when money is
very abundant prices are high, and
when money is scarce prices are low.
The experience of the world proves
this to be true. Hence contraction OF
the currency, while it may reduce the
premium on gold to some extent, has
still more important effect in the rc
duction Of prices of labor and all its
products.
But am told that it makes no diff
ference with the working people or
the corporations if the price of labor is
reduced, if all we have to buy is re-
duced in price in the same ratio.
Let US see. Brown is laborer. He
works at 81 per day and works 800
days in the year.
At the end Of the year he has earned
$500.
But he owes 81, 600, on which he is
paying interest at the rate Of 10 per
cent. To pay this interest takes S100
of his years earnings. His grocery
and clothing bills are $1G0 more. At
the end of the year he proceeds to pay
these liabilities and the account stands
thus:
Brown, Cr.
BY 300 days labor, 81 per day, $500.
Same, DR..
To interest on $1,000 at
10 percent 500
To groceries, ETC., 100 200.
Balance on hand, II SlOO
Mr.. Brown now goes on and works
another year. He works the same
number of days. expends the same
number of drops of sweat; the pro-
ducts Of materials is exactly the same.
But during this year the currency has
been contracted until prices have
one-half, and Browns en-
ployer could only pay him one half as
much as he did the year before. oh,
we'll, you say it makes no difference to
Brown because everything he has to
buy is less in price by one half.
Let us see how this will work out.
AT the end of the year Brown gets
his money, which now is $3.50, and he
proceeds. as before to pay his liabili
ties. ..5., ...s..I.. .s
Here is the way the account stands:
Brown, Or. 80 - ~
By 800 days work. SOC. per day, $3.50
Same, DR..
To interest on $1,000 at
10 per cent, 500
The grocery bill. rcduc- ,.s.
ed one-half, so $3.50
Balance on hand. 5000
Now gentlemen railway managers,
yon are playing Brown.
There is standing over against the
railways OF the United States, a vol
ume Of Indebtedness fully equal to 81
go. 100000. On this vast sum you are
trying to pay interest at the rate OF
fully eight per cent, and not less than
two percent. additional for managing
the debt, recording mortgages. legal
advice. etc. In all it is fully equal to
10 per cent. per annum. making the
h andsome sum OF 32.5OO,OOO, which
you pay to capitalists who hold Your
notes and bonds. When money was
plenty, just after the late war, you
paid this. aud it did not hurt you, be-
cause than the DeODla were receivin0
large prices 70: all they could create
or manufacture. Then they spent
their money freely with you.
Your Golfers were full.
Your employees were well paid.
You had no strikea.