Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-18
THE PARADOX UNsoLvED.


Paradox" the APPEAL published an article
in which it was shown that, while railroads,
telegraphs and telephones are invented,
planets discovered, the history of the worlds
past investigated, and the mysterious prob
lens of life are submitted to searching analy-
sis, the shoemaker, the clothier and the dry
goods dealer are suffering because they can
not sell their goods, while thousands of citi-
zens are in trouble because of the difficulty of
getting shoes and coats and dry goods to
wear; that the agricuturist is in difficulty
because he cannot sell his wheat and corn,
while others are perishing for want Of wheat
and corn in sufficiency; that money is lying
month after month unemployed in the banks,
causing annoyance and loss to those institu-
tons, while business men in thousands are
Strengthened in their operations for want of
the money thus lying idle. With all our
grand discoveries and inventions, none have
been found who could bring the surplus of
shoes to the naked feet, the coats to the
the empty stomach or the re-
dundant and idle capital to the
merchant of deficient means. The article in
the APPEAL concluded by saying that he
who could accomplish these much-wanted
results would be regarded as genius. There
have been many in past generations, and in
the present age, who have studied this grave
problem, and some have professed to have
solved it; but the state of things as we know
them to exist to- day shows that the solution
has not yet been reached. The Little Rock
Arlr \ oil, ;ol
talents to this question. Taking the subject
as presented by the APPEAL, and remarking,
The APPEAL intimates, also, that he who
could explain this singular fact would be re-
garded as a genius, " the Gazette boldly says:
I'm the light of the facts, we do not see that
the case presents any difficulty whatever"
This intimates that the desired genius exists
IN Little Rock, and that genius proceeds to
attempt the solution by showing that the
United States government is great money
borrower at this time, for the purpose of OBJ
tanning means for specie resumption, and
that at is the rival borrower of the
people" Having superior credit, its
securities meet with preference Be-
sides this, moneyed men prefer to lend to
government rather than to individuals be-
cause the greenbacks lent are destroyed and
interest bearing bonds issued in lieu of them,
by which the volume of money in circulation
is restricted and the value of what is left in
hands of the capitalist proportionately en-
HANGED in value. Therefore, ''as long as
the government is borrower of all it can
get, individuals will not be able to obtain
loans" Unfortunately for the Gazette, and
tor civilized society everywhere, this conclu-
sion of our Little Rock cotemporary is erro-
neous, and The great social problem remains
unsolved accordingly. 1t has mistaken an
effect for cause. Capital has gone into gov
eminent hands not because of the superior
power of government to draw it, as a gen
eral thing, but as pts dlieg', because it was
government bonds or nothing The banks
and capitalists could find no borrowers, and
stocks paying six to ten per cent. had been
bought up, and were held high, so, for want
of doing better, four per cent. had to be ac-
cepted by buying government bonds. 1t
is not a matter of choice, but of neces-
sity. If the Gazette wants proof of it,
proof is plenty. Chicago is proverbially a
place where capital can find employment, if
anywhere, yet look at the following from the
Chicago Tribune of Saturday last: ''Only a
few years ago our banks were obliged to So
hclt discounts from eastern correspondents
and from whatever parties would loan on col
laterals or individual securities, in order to
accommodate our business men and to move
farm products to the seaboard. Instances
where favors are now asked are rare and
several of our institutions have been forced,
In order to realize any interest, to invest
largely In government bonds. Statistics care
fully gathered show that the banks of this
city now hold about four million FIVE hundred
thousand dollars. OF this single bank has
one million nine hundred thousand dollars
Another proof that the paradox we call at
tention to is owing to wider and more gen
eral cause than any the Gazette has dreamed
of, is that in England, the country of over
flowing wealth, shoes and coats and money
lie unproductive in the hands of their owr-
ers, to far more extensive degree than with
US. Indeed the paradox is not one of merely
recent times or restricted territory. 1t is one
that manifests itself more strongly, however,
IN the more stirring times of COM
merce, but it has ever existed, and
will exist wherever the laws or customs of
society distribute wealth so effectively that
the tendency of things IS for the rich to be-
come richer and the poor poorer.