Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-02-04
PARALYZED INDUSTRY.
That CONTRA TON HAS DONE.

An UnanSwerable Argument to Those Who
Favor Resumption and the Gold Standard
Only--A Million Persons Out OF Emu
ployment--The Startling Loss Which Is
Thus Occasioned.
Editor of the DAILY GLOBE.
AS the statements made at the recent finan-
cial discussion at the Capitol by those favor
ing the repeal of the resumption act and the
restoration of silver, as to the number Of
men out of employment, and the general
distress and depression of business, we're
deemed by some of the speakers on the other
side exaggerations, may ask you to publish
the following extract:
1t is taken from the report-see pages SO
and 59-of the commissioners appointed by
joint resolution of Congress. August Is.
1876, and made to Congress, March 2, 1877.
The commissioners were, John P. Jones,
Louis V. Bogy, and George S. Boutwell,, of
the Senate; Messrs. Randall, L. Gibson,
George Willard, and Richard P. Bland, of
the House of Representatives; Hon. William
S. Groesbeck, of Ohio, and Prof. Francis
Bowler, of Massachusetts,. George M. Wes-
ton, of Maine, was appointed secretary.
ssThe peculiar effect of contraction in the
volume of money, is to give profit to the
owners of unemployed money, through the
appreciation of its purchasing power, by the
mere lapse of time. 1t is falling prices that
rob labor of employment and precipitates
conflict between it and money capital; and it
is the approaching effect which shrinkage
in the volume of money has on the value of
money that renders the contest an unequal
one; and gives to money capital the deci-
sive advantage over labor and over other
forms of capital invested in industrial enter
prises
Idle machinery and industrial appliances
of all kinds, instead of being productive of
profit, are source of loss. They constantly
deteriorate through rust and waste. They
| cannot escape the assessor and tax gatherer,
as the bulk of money does, and must pay ex-
ira insurance when idle. Labor, unlike
money, cannot be boarded. The days labor
unperformed is so much capital lost forever
to the laborer and to society. 1t being his
only capital, his only means of existence,
the laborer cannot wait on better times for
better wages. Absolute necessity forces
him to dispose of it at any
terms which the owners of money may
dictate. These are the conditions which
surround the laborer throughout the COM
mercial world to-day. The labor of the past
| is enslaving the labor of the present-at
least that portion of the labor of the past
which has been crystallized into money is
enabled through shrinkage of its volume,
and while lying idle in the hands of it's own
ers, to increase its command over present
labor, and over all forms of property, and to
transform vast numbers of honest and in
dustrious workmen into tramps and beggars.
These laborers must make their wants con-
| form to their diminished earnings: they
must content themselves with such things as
are absolutely essential to their existence.
Consumption is, therefore, constantly
shrinking towards such limits as urgent
necessity requires. Production, which must
be confined to the limits indicated by con-
sumption, is constantly tending towards it's
minimum, whereas it's appliances, built up
under more favorable conditions, are sufici-
ent to supply the maximum Of consumption.
Thus idle labor, idle money, idle machinery,
and idle capital stand facing each other, and
the stagnation spreads wider and wider.
The future affords no hope or prospect of
improvement, except through change in
financial policies. Prices have been per
sistently falling throughout the world since
1873, and as fast and as far in specie paying
countries as elsewhere.
If the policy of claiming the industry
and commerce of the world to single
metal be persisted in by the United States
Germany and the other countries of Europe
acting in consent with them, money must
still rise in value, and prices continue te
fall.
The depression in productive industry
will become more deathly, and the number
of idle laborers will indefinitely multiply
The loss which this country sustains by rea
son of the enforced idleness Of these mil
lion persons who, although idle, must stn
in some scanty way be supplied with food
clothing and shelter, is in the aggregate
very great. If it be estimated at one dollar
per day for each laborer, it would amount il
two years to sum sufficient to discharg.
the national debt. It would pay the interest, a
five per cent. per annum, on eighteen thous
and million dollars. It would be sun
more than sufficient to supply anew
each year the circulating medium of thu
country. It would amount in four years t.
greater sum than the worlds entire gol6
product has amounted to in the last fifty pro
Life years.
1t would aggregate in ten years value fal
greater than the value of the worlds entir,
product of both gold and silver for the las
hundred years. It would amount in fou
years to sum more than sufficient to dupli
cate and stock every mile of railroad now il
the United States. Contrasted with til,
startling sum thus annually lost through tn
! shrinkage of money and falling prices, tn
amount which could by any possibilit
be lost in a generation through fnctuation
in the relative values of gold, silver and pa
per would weigh as mere dust In the balance
IF to this loss be added that caused by tn
employment of productive machiner
and appliances, tho aggregate becomes ap
palline. No more fatal blow, therefor
could be directed against the economics
machinery of civilized life than one agains
labor, and that blow can be most efectivel
delivered through a policy which strike
down prices. If all debts in this countr
, had been doubled by an act of legislation,
, would have been far less calamity to tn
j debtor and the country than the increase i
3 their real burden already caused by contrac
+ ton in the volume of money-and intinitel
t more disastrous in every sense than an un
, lust increase in the burden of debt is tn
! universal stagnation of industry and com
MERGE resulting from the same cause. Th
: doubling of debts would have left the pre-
ductive forces nnimpaired, while fallin
prices are sapping them insidiously an
T fatally
The above, it seems to me, Mr.. Editor, full
answers the false and cruel statement mad
i at the meeting, to-wit, that the country is
y highly prosperous condition, and thu
those who are out of employment are drunl
/ ards and vagabonds.
n w. L. BANNysa.