National Republican., 1878-01-31

has been destroyed suffering moral and
physical, to narrowing extent in
fiicted, we shall see the urgent neces-
sity Of promulgating accurate knowl-
edge on this subject, which Is
the main cause Of the present distress. In
the procession Of sufferers precedence is
given on every ground to those who derive
their income from the soil. In the direct
ratio TO the rise in value Of money the pres
sure Of rent and taxes on land increases,
while at the same time the fall in the ele-
mentary cost of production is much slower
than in that of prices in market. The years
product fails to meet the outgoes and the
farmer makes up the deficiency from his
capital. The next year IL is no better still
he feels confident that better times will soon
come, because he cannot see the invisible
hand which relentlessly perseveses in de-
priving him of his toll. But the years roll
on and bring no relief, until his capital is
exhausted and ruin ensues. As long as
money rises in value the destruction of cap
ital invested in farming goes steadily op.
The manufacturer comes next, Calcu-
lating on the stability of money, he crects
works, buys material, and puts his goods
upon the market. But he finds, TO his dis
may, that prices have fallen below the cost
of production. Unconscious of the true
cause of his failure, he ascribes it TO transit
tory conditions, soon to pass away. lie re-
turns to his work, hoping for better sue
cess next year; but again and again the re-
suit is the same. Disheartcned by the bad
ness of the times, the prudent man limits
his operations, the adventurous redoubles
his exertions only to sink at length into
bankruptcy. By this process one-half the
capital invested in machinery has been
lost during the last fifteen years. The la
borers share in the misery, and while the
same cause continues to operate, the mum
bers that are thrown out of employment
continue to increase. Oppressed alike
| by idleness and want, they are
seen lounging about the places of
their former activity, suggesting the image
of the suffering ggroups that stretched around
the pool of Bethesda in listless expectation
for the delivering angel TO touch the stag
nant waters. The merchant also finds all
his calculations end in disappointment. The
general distress diminishes consumptive de-
mand and aggsavatcs the fatal tendency of
the appreciating currency to depress values.
| Ifhe thinks this unnatural state of things
cannot continue" and thus fortifies himself
against doubts, ruin overtakes him. If he
| limits his operations to the preservation oi
what he has already acquired II is u par
alysis Of trade Sooner or later the suffer-
ing reaches all classes, coming at last 10 the
bankers and dealers in money. With rue
ful countenance they bring up the rear in
this general muster Of pursuits. Alarmed
by occurring disasters, the capitalist re-
calls his loans from trade "as from n bum
| ing city devoted to destruction
Deprived of his best customcrs-the pro:
ductive classes--he waits in vain for an
effective demand in the money market, and
though he reduces the interest again and
again, a large portion of it will still remain
unemployed, and thus his income is re-
duced. In the midst of the general distress
the fund-hOldcr and the annuitant. the man
and prnsioncr, and the mortgage are the
only real gamers. The purchasing power OI
their income has vastly increased, and thus
the weight of their claims on the productive
class has been made proportionatcly heavier
In fact, the whole sum of additional enjoy
ment gained by the former has been lost by
the latter. and 50 long as the same cause
operates the spoiaton will continue. Sucl
fare some of the effects of rise in the price
of money. In proportion as they are un
suspected or defed they are destructive. II
proportion as a community is wealthy ant
productive they will he severely and acutcl,
felt Is the momentum Of the ball cX
hausted, or is it still in operation? If tn
latter, when will it terminate? and, lastly
what remedies does the case admit of?
We can get no more metals, but we ma,
diminish the demand for them by the sub
stitution of paper money-"by II rchabilita
ton of the condemned paper circulation.
A reiormer of the English banking system
is all that is needed for England.