New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-24
THE TESTIMONY.

The Congressional Committee on Labor and
a,resslon IN Trade continued their inquiries yesterday
,rsssrs Hewitt and Rice present throughout the
,,,e session and Mr.. Thompson during part OF the
- w Goodwin Moody, who gave testimony wednes-
presented to the committee a table OF statistics Of
arc number Of men, women and children unemployed in
Tie United states.
The FIRST witness was Horace White, Of Chicago,
journalist
a. the depression under which the community is
,serlpgi Al have given study to the question
nat can't say that 1 have yet fully mastered the
,,bieet It can be viewed theoretically and hstOH-
civ The present crisis is only one Of series Of
,,u,ilar crises that have occurred in the history
ocommercal nations during the past $50 There
have been dozen such instances before, which have
bsep "A srreacbing In every the crisis has been
reeeded by a period OF extravagant speculation in diff
forep forms During the year 1873, in this country 1t
,k the form Of gigantic railway and land speculation
prior TO 500 average amount Of railway building in
the United states less than 1000 miles ayear when
suddenly rose to 1000 miles; in 1870 went up to g.
600 miles; 1871 TO 1000 miles; in 1872 it between
600 and 1000 miles and in 1873 between 5000 and
1000 miles. This increase IN railway speculation was
accompanied by enormous speculation in land,-in the
west among the uucutivated prairies and in city and
suburban real estate This of EspeculatiOn the
approximate cause of the crises Similar crisis have
always been produced by similar causes.
o-Ralways are good things in a country, they
mott ACertaDly every railway is OF great value if it
ean pay operating expenses. The obligations incurred
n the purchase vast amount Of real estate at large
prices could not be met Values became fictitious You
must measure your accumulation of wealth in something
Of value-dolars In this country, pounds sterling In
England These fictitious values had to be resolved
into gold. Property estimated at high figure could not
be converted into its value in gold As soon as the
people found that they could not afford to pay dollars
when they had agreed to- the crisis the natural re-
suit.
o-Had the nature Of the currency anything to do
with iti Avery little, think.
Q-What induced this era Of speculation, theni A
Such period Of speculation as existed in this country
will set in periodically. 1t will come regardless Of the
currency whether is rredeemable, or gold or silver
money. the thing win happen
o.-After the Government postponed resumption in
1865 did that not lead speculation A-The season
Of contraction Of very short duration. 1t only
lasted six and half months and had little 10 do with
the speculative era, Speculation was going on In
England at that time.
Odd machinery play an important part in the
speculatve era z A.-The introduction Of machinery
always causes great deal to be produced than is
consumed. This leaves surplus, and surplus tends
to bring profits to a minimum. When capitalists hnd
that the profits are diminishing they driven TO ex
tremtes 10 find for the excess Of capital New IN
vestments are tried. In that way, think era Of
speculation is started The crisis of 1925 in England was
preceded by vast extension of its commerce to South
America Capital was exported TO find investments.
Odd the destruction Of capital during the war cause
an era OF dearthf Al don't believe there any
great destruction of capital them not in the North Cap
al is OF two kinds, fixed and floating, Fixed capital
consists Of houses steamboats,, land etc; floating
al lie composed Of cOnsumabe commodities. The fixed
capital was not destroyed in the North. Not more than
tenth the National debt went abroad until the last
year Of the As as the war was ended and for
elgn countries saw we would pay our promises they
bought our bonds and the bonds OF cities, rail-
roads corporations During the war the hxed capital
increased the floating capital not reduced Ger
tain natural destroyed those that came
from the bowels OF the Garth such lead rOn "copper"
coal Manufacturers large stock on hand prior to
the war which was greatly decreased the derence was
the loss The making up OF these losses produces 40
tvty and period Of speculation.
Q.-Can the Government intervene and become the
gun it would be impossible to tell where to begin and
owSald Ii be possible TO get back to period Of pros
pefity by iufiatiOn Alt would be great injury TO
Tie country and aherculesn task The Wisest men IN
oECould Congress undertake a vast amount Of public
E0ras 70 s0I TSaf Would create National bank
rupcy and universal individual bankruptcy. People
ruined. forced division Of property on somewhat
Communistic basis might be one OF the results.
Awe would have TO form new Government, and IN
time reassnme the debt which had been TepuqsteG;
this abundanty able TO pay the DEBT ana II
o%Wold change In the tariff system be Of avail in
present difficulties A.-PrOtective tariff produces an
Industry but leads TO loss OF capital I believe
reer tariff but not in sweeping reduction on all pro
teetve duties The duties on raw materials SHOULD not
be so great to discourage an easy exchange Win
ae OF gTq Il ss very Ssve FEDERAL legislation reg
late the hours OF abOri A-such course would be an
infringement Of liberty. -
Oft has been suggested here that one class Of the
community possesses superhuods wealth. while announcer
which portion OF the extra money could be transferred
from class 70 another. A.-Every legislative az
tempt TO transfer capital makes the rch rchef ana the
Q!woud it be feasible for the Government to colo
nEe the unnhabited lands in the Westf Al thlnkn
would be hazardous thing for the government II
a. the issuing of charity 10 the sufferers Memphis.
VIEWS OF CHARLES FRANCIS ADAMS, JR.
Charles Francis Adams jr Of Quincy, Mass, was next
examined he said he hes been for many years con-
nected with the Railway Commission OF Massachusetts
Mr. Hewitt-We wanted you here, Mr. Adams on &C
count Of your connection with railway management We
md out what can done by legislation in the
management OF railways that would benefit the country
Business Is depressed and labor Is depressed ana u rs az
Legged that railway management has Deeh one OF tue
Mr. Adams-Tbere are two things to take into consid-
Grafton in connection with raroads-rairoad constfnc
son eLa railway management E1eessIyS It S LTD
construction bnt railway management is the most pow
erful factor TO relieve Railway management as an
employs ali the hands now that II ever dis before at re-
doed rates, Of There has not been dsmissng
q bands as has occurred ut factories ana mills, sO
var There may be abuses IN the Inanagen zen ons
don't think IL be relieved Oy leglhlatlOu VIC uaNo
already had great deal OF bungng legislation calcll-
lated e. remedy these evils. Prices arc not hlgh BOW
Freight il being carried for half mill ton per mile
Or railroad system Is founded on competition.
The roads are always engaged IN great war
sRong Themselves Competition leads 10 difficulties
dscrmibatiOn against localities and violent huctuaOnt'
Tie only remedy that eoulG be suggested u 70 nave
commission appointed TO investigate carefully inc
abuses, dlsas1eements aud grievances when people
taher and publicly them. Pubicity IN THESE
eascs wOnld do much good. The establishment OF
commission might possibly lead Ia the framing OF RENE
Dial laws. Bnt prosent legislaon could not cure tue
evils you the before the horse fou must