New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-01-23

i87G.. 7l4260j07 lS15......'.- 1d23s g osi2
l 1879 7$ $iiiS65 ~ i''0'''''''''
The entire circulation In 1870 was, in round
numbers. 1862, 100000; in 1873, S'4o'Ooo'-
600 and in 1874 it was $75SCOO.Ooo. now
then is it possible that the crash oil 1910
could have been produced by lack OF sVlhcieht
circulating medium. when there 63,0OO0oo
more in 1873 than in 1870, and T13,ooOO0o
more in 1874 than in 1873. and III either year
more than twice as much as i'll 1852.
Ifpeither the fixing of time to resume nor lack OF
circulating medium caused the crash and nseluent
stapnation in business then TO what is that result
due II came because production in every branch OF
industry. except agriculture, had reached point
bevond the capacity of the people to consume.
The ability to buy ana the ability or capacity TO
consume are two distinct things. The aoiiity
TO buy depends upon the general prosperity-npoh
an active constant demand and ready pay tor LABOR
in all branches of business-and is limited ana con-
troled by that; but the ability capacity to con-
se has its limits beyond which il is impossible TO
90 no matter what may be the ability 10 buy IL IL
utterly impossible for an individual to consume
more than "A certain amount of any thing lie may
waste and destroy almost without limit, as ID case
of war: but he cannot consume even Ill wasteiui
extravaganza beyond a certain limit. In 1873 as
o people. we had reached that point. Take as an
production of iron and anthracite coal
CONSTRUCTION OF RAILROADS.
For four years, 1865 ielosc of the war to 1865
inclusive. we built S3l7 miles of railroad; which
included nearly all of the Pacific Railroad and Its
branches. The next four years, 1859 to lS|2 IN
elusive we built q 305 miles and for the next four
wears including 1876. there were only S,SGG miles
built difference Of 15,499 miles in four wears.
There were in 1873, in the United States 70,G5l
miles of railroad. which had cost almost
So OOO. 600 OOO more than half of which amount
returns nothing to the investors Our rali-
road system had then been extended tail
there was on an average mile of railroad to every
$50 persons. Ali experience i'll rsllroadDg wherever
the experiment has been tested proves that Tor
railroad to pay anything there must he on an aver
age to the mile not less than 900 persons tributary
to the business of the road In England the average
per mile is 1916, and in France 2.9i0, and yet but
few of their railroads pay Railroad building in this
therefore ceased or comparatively ceased in
1873 from sheer exhaustion i'll that line Of develop
ment having locked up in uuproductve investment
over 50 600 000, 600 lis stOppage, Ill addition TO
leaving unemployed the labor that had been engaged
in the preceding four years i'll building 2]OOO miles
of road put an end for the time being to the great
demand for irOn and with If the great demand for
coal Hence the necessity for the reduction IN
the force as well as price of labor in all thee of these
great branches of industry.
The production of pig iron IN the United States in
1870 by the returns of the Steel and Ion Associ-
atom was 500 900 tons, and OF rolled iron the
same year. 800, 900 tons. In 1873 the product
was 2SGs 900 tons of pig iron. and 1866 - tons
of rolled IRON The foreign importation of pig iron
in 1870 was coin valuatiOnl SO, 800, $50, and of
rolled iron $14,149,Osj, and in 1873 it was $751;
g sI- I = = of
Thus from 1870 to 1873 the home product Of pig
and rolled iron was almost doubled, and the foreign
importation almost trebled. The increase in the
production of iron in the one year from 1871 to
1872 was greater than for the ten preceding years.
and with the soppage in railroad building it was OF
course far beyond the capacity Of the people TO con-
sumo.
PRODUCTION OF ANTHRACITE COAL.
The aggregate production Of anthracite coal III
1870 was 10 $50, $50 tons, and in 1873 it was d.
$50, 1850 tons. The increase i'll the production for
one year (1S71 to 1922 was 5136, 46G tons being
an increase in this year equal almost to the en-
tire increase Of production for the ten years preced
ing 1870. The aggregate production in 1874 was
18S0,SS5 tons less than in 1873 and the aggregate
production in 1876 was almost 1000 900 tons less
than in 1874
TO NINE anthracite coal and distribute to
four days work per ton. The production of
1874 would therefore, require 7,523,540 days
less than the production of 1878, and cor
responding reduction for the lessened product of
1876. In the production Of iron, it is estimated
that five days work, average, arc required to
produce ton of iron, including the labor OF mining
and smelling the ore. AS the product Of rolled iron
alone in 1874 was 1876 SS5 tons less than in 1873,
ga, 42j days work less would be required IN 1874
in the manufacture of this single article. In the
production of anthracite coal and rolled iron alone
over 100000 days less were required i'll 1874
than in 1873.
So in every other branch Of mechanical and manu-
featuring industry, production had been stimulated
in 1878 beyond the capacity of the people to con-
ability to buy in 1873, the year of the
crash vas as great as in any preceding
the first impulse to enlarged production, and in
creased the demand and enhanced the price of every
thing. An expanded currency of irredeemablc
paper made necessary by the war stimulated
spirit of wild adventure, and an unparalleled
extravaganza in the habits Of living.
The importation of foreign merchandise Ill 1870
tgold vauaton) was $l3J95s,4OS or at the
rate Of 81 so per capita OF population, and IN
1872 the imports were $626, 192,0| ana IN 1913
they were y6i2 126,21O or at the rate OF Tl6 %
per capita being 60 per cent greater than the aver
age for the twelve years immediately preceding
for twenty years preceding 1870 never exceeded $40
a year. The importation OF foreign merchandise
lcoin vauatOpl for four years, 1871 to 1873 inclu-
svc, were 81, 5636i 1913 al amount exceeding the
present National debt, and $130, S77303 more
than the entire imports for eight years from 1858 to
1865.
During this whole expansion in everything else,
there comparatively increase IN agriculture.
From 1850 10 1860 by the census returns the i'm
proved lands IN farming increased 5O,07S, LOG
acres being at the rate of 40 per cent for the ten
years From 1860 TO 1870 the increase %
S10373 acres, OF at the rate of l5i2 per cent while
the increase of acreage IN farms from 1850 to 1860
was 40 per cent, it only increased l. of per cent
from 1860 TO 1870
MUNICIPAL INDEBTEDNESS.
The municipal indebtedness of the country in