Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1878-10-17
CARL SCHURZ ON FINANCE.
The Eminent Statesman's Views on tho
Monetary Situation. 7
Tho "Ohlo idea" and 10 inevitable censs.
quences..-Nuts Tor The Deiuded Green.
hackers 10 Crack.

N the night of Sept. 2Sth He addressed
his remarks more particularly to those
persons afflicted with the Greenback-fiat
money theory, showing most clearly by
Ill the laws of philosophy, experience and
trade, the ruinous effects, especially upon
the laborer, of any system by which the
power of 4 dollar is rendered
and uncertain. As no small
portion of the present distress is charged
by blatant orators of the Democratic
school upon the Republican party, Sec
rotary Schurz naturally addresses HIM
self to a clear and undeniable explains
ton of the causes Of the breakdown in
1878, and the subsequent bust
ness depression of all sections
of the country. lie briefly
sketches the financial distress which oc-
Cured in Austria and Germany in the
same year, certainly where the Republic
can party does not rule, and then pro-
ceeds to exhibit in the following clear
manner the underlying causes which
necessitated the crash of 1873, while
suggesting the only mode by which our
people and our industries can gradually
recuperate and renew their old-time
prosperity:
The real causes were, as l have more than
once had occasion to describe them, great
wars resulting in an immense destruction
and waste of wealth; large industries min.
istering to the work of destruction instead
of producing additional wealth; but after
that, excessive enterprise, stimulated by
apparent success; the sinking of large
amounts of capital in great undertakings
which could yield no immediate RETURN
such as the building of railroads when they
we're not needed; for anticipating the
future. The invention and introduction OF
new labor-saving machinery, creating new
facilities of production, and including ex.
cessive manufactures beyond the present
demand; while speculation, dealing, and
gambling in all sorts of imaginary values;
an immense number Of people trantically
striving to make money quickly by any
means except solid work; an infatuated
faith in the certain success Of windy
schemes; and an unnatural straining of the
credit system by pushing speculation and
enterprise far beyond the means of those
engaged in it, and finally almost everybody
believing himself richer than he was and
therefore spending more than he could
afford, hence widespread extravaganza
and improvident habits. And II we
inquire what the currency had to 40 with
it, we shall find that in this country our IT.
redeemable paper money, by its deprecla'
ton, running up prices to a fictitious point,
stimulated the spirit Of, recklessness and
gambling in almost all branches of enter
prise and business, melted extravaganza,
and thus strengthened all the bad and de-
moralizing influences, which are usually
active at such period. Such things are
apt to go on swimmingly for some time.
But illusions and lies will not last always,
especially in business. matters. After
while it will turn out that million Of men
engaged in active warfare have consumed
any; that railroad running from point
nowhere to point nowhere cannot pay divi'
dends until it has passengers and freight to
carry; that the value of real estate does not
depend upon the imagination its owner
but upon the use that can be made of it
that corner lots in paper towns
where nobody lives and nobody in
tends to live will not bear heavy mortgages
that articles of industry produced beyond
actual demand will become drug in the
market; that shares in joint stock com
panies, however skillfully followed by op
orators, will at last become worthless if the
enterprise yields no profits; that men who
borrow more than they can pay must at last
break, and that those who spend more than
they caro- will finally become paupers. This
light, the light of sober truth, usually
breaks all of a sudden upon the people
The illusion all at once vanishes, the bubble
bursts, and we are set now heavily upon thu
hard rock of real fact. That thing happened
to us in 1873. Theu we rub our eyes anc
look around, and wonder how it all came
thing in the world. People who invest il
air.castles have no right to expect anything
else than that these investments at last van
ish into the air they were made of. The bes
thing we can do after such a collapse il
to quickly gather up our five senses and g
to work like men to repair our shattered
fortunes. 60, "a" ........
And how can those shattered fortunes b.
repaired? First, by recognizing the error
of our ways and discarding all self-decep
tons and decisions; by remembering tina
our wealth must consist in what we pro
duce, and have, and not what we dream of
by abstaining, consequently, from all wind!
schemes to make ourselves rich by printing
acting upon the princi pie that the onl!
honest way to get rid of our debts is by pay
ing them, and that we can become prosper
GUS only by producing things that are usefu
and by spending less than we earn. Thesl
may look like very old.fashioned home
| spun doctrines, but whatever our modern
financial iugglers may try to have you be
lieve, these doctrines are now just as goot
as they were thousand years ago, and the.
point the only way. out OF; gu
difficulties. There is no other
people be it said, a very large majority o
them have been acting upon these prin
ciples for the past five or six years, and the!
are all the better for it: 1t is true goo,
deal of wild talk has been INDUCED in abou
all sorts of methods to manufacture none,
out of nothing, and to distribute it 50 as t
keep everybody's pockets full of cash
thereby putting I'll the people at ease. Blu
although the Wild talk has befogged SOM
and impeded needful legislation, yet tn
people, on the whole, have been steadily a
work producing useful things and practicin
wise economy, and while the results Of tn
activity have not yet been felt in all TN
walks of human industry, and all classes o
| society,". yet l. venture to say, that, durin
the j.. last :. i've i, years the Americas
people have created more real sui
tantial wealth: than during the five years o
wild .scheming, gambling and Speculation
which preceded the crash Of 1878, Iventnr
further to say and think it is felt; all owe
the country-that business activity is slowl
but surely: :quickening again, and that til
american people HOW SGauu upon VI
threshold OF a new period Of prosperity, an
that We shall reap an abundant harvest 0
It, unless we throw away eur: opportunitie
by mischievous rinterthed1ling with tn
natural development Of things. ~ ,,; -"
That revival 81 business and prosperit
will indeed not consist in putting upon thei
legs again old exploded: speci1lations, or ii
restoring to their wealth again busin essnel
who broke down by Yentqring into opera
tons largely beyond. their means, AM
spreading their capital all over creation
TO be sure, many of ihat class who are still
struggling may still have to 60 down, AM
nj fat money can help them. But new mel
will step into their; places. s,,.:4 ID; 81, '-'
Secretary echurz's' exposition of tn
transeendaptr value of Il national credi
and. Of faith the. most honorable witt
the bondholdeF is masterly, IT is one, o
the clearest' ek plantations Us to how gu
bonds have become interlaced with ever,
industry of the country and how dread
ful would be the: shock and how init,
rious would be the effects of attemptfn,
to pay,these bondsby an additienalissu'
of gfeehbacts which; would, be ,inAiec
population, and: which ctrine, Wei 81,