Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1878-09-30

stimulate the manufacturing and pro-
ducing industries; and as necessary
result ''times" were easy, and everybody
had money in his pocket, and enough to
do.
In addition to this borrowing and
spending of money by the national gov
eminent, millions upon millions-into
the thousands of millions-were borrow
ed and spent by state and municipal
governments in connection with the war
with results similar to those stated
above.
Toward the close of the war, and |
since, thousands of millions of dollars
were loaned by states, cities, towns, and
by individuals abroad and at home, and !
although stolen in part, yet in part
spent in building railroads, and in other
improvements, which everywhere, for
the time, largely stimulated and devel-
oped all kinds of business activities,
and gave abundant and remunerative
employment to labor: and, so far as this
was done by states and municipalities,
debt was created that is now being
paid. principal or interest, by taxation.
During the war million of able bod
led were taken from the ranks of pro-
ducers, and became only consumers, and
this, lessening the supply of laborers
and at the same time increasing the de-
mand for the products of all kinds of
labor increased remuneration.
States, towns, and cities, as we'll as
the national government and individuals
increased largely their ordinary expen-
ditures, and have kept up some of that
increase until the present time,-some
Of it by taxation, much of it by contin-
ued borrowing and increase of debt.
For six or eight years the country has
been going through the natural sequel
Of such a state of things. The demand
for labor and what it produces, and
along with it, as always happens, de-
mand for money or capital, has fallen
off largely. Everywhere individuals,
municipalities, corporations are buying
less, and consequently sellers and pro-
ducers complain of dizziness in trade.
The nation is paying its debt, contract
ed in flush times, it is not repu-
dating them,-but the public debts,
are only paid through grinding taxes
and corporate and private debts are often
liquidated in bankruptcy-and the bur-
den of these payments, and the losses
that reputation and bankruptcy bring
upon creditors, force an economy, that
is in every way just the reverse of the
easy process of running in debt and lib.
eral expenditure. The one is the down
grade the other the return natural ten
denotes help the one; hinder the other.
Railroads are Improbable, their bonds
are ''scaled" or repudiated entirely, and
their stocks are worthless ; and those
who invested in them have lessened in
comes and must lessen their expendi-
lures. Interest on government bonds
has largely been reduced from six pei
cent to five, four and half and four,
and this also reduces income, and there
fore expenditures. Iron, cotton anC
wooden mills are standing idle, or work
ing on reduced time and wages, because
of the falling off in demand for theil
4. products and there are less wages to the
laborer and less dividends or none at al
for the stock holder, and again les:
money to spend. Money is plenty, fol-
rates of interest are low because capita
cannot find profitable employment, anc
: the banks and money lenders never
made less than now. The government
bonds of railroads are held largely
abroad, and so far as they are being
paid, take the money and the products
of the country for that purpose, and this
explains what is now often called tn,
large and favorable balance of trade
We sell more than we buy, but we sci
, to pay our debts, and from hundred t,
hundred and fifty millions of dollar
in value of our products are in this wa,
annually sent out of the country.
This condition of things has not BEEF
brought about by q contraction of tn
currency, or by settling day. Their
has been no time when currency coul,
, not be had for all legitimate business
and it can be had now. Men like ia
Cooke went down because they promises
to pay more. than they had means to pa
and while, if they could have continues
Re to borrow, they could have kept afoa
d awhile longer, the collapse was sure t
is come sooner or later. Philadelphia ha
IS banks enough and money enough whe
IS Cooke failed, and he could have had al
'r the currency he could get security fol-
s. but he had no security to give. Borrow
&c ing largely and recklessly may be sue
" cess to-day but it will be bankruptc
he tomorrow and the bankrupt not onl
fails, but all connected with him suffer
y Some of the remedies proposed fc
ID this depressed state of business may b
= considered hereafter.-C. ". ". 4
he Montpelier Freeman.