New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-23
WHAT THE WITNESSES SAID.

tefday The attendance was muoA larger than al the
session Wednesday Before the proceedings were be-
gun. old in the crowd called the Chairman bv
name and said the committed had broken faith with
him. He had long distance and for two days had
been under the idea that he would be examined lie
said that all the testimony that being taken vas
pure that the only way out Of the present dir
Hcuty through the steady Improvement OF society
IL must regulate itself through good statesmanship
The first witness William @ Sumner Professor Of
Political aud Social Science 10 Yale College.
Mr.. Hewltt-HaVe you investigated tile causes Of tho
present depression of business among the community
AIN the range Of my professional studies ! have
ayaed myself OF the means TO form ideas about t. Il
Is very difficult To embrace the whole subject and he
would be very bold who said he had sounded The
whole question. IL ought to be carefully considered IN
| two points Of view General causes which have com.
bined TO produce similar results throughout the world
during the past five or six years and other local
and peculiar circumstances IN the United states
! which should be considered by themselves.
Q.-Now give us some Of these general causes. Al
have tried to study hem, and will present or two Of
them in broad way Look the world during the last
ten or fifteen years. and what a wonderful change
has been made in the manner OF transportation aud
communication. The Suez Canal has been constructed
railroads been built every direction, telegraph
lines have been established all the world-thcss
things have produced revolution in the industry OF tho
world. The stock of goods to have baud
for exchange is less than when communication was
slower. For instance take trade with Brazil When
coffee shipped there formerly 1t necessary 70
wait month for the vessel 10 return with fresh orders
and to carry supply. II was most important that
there should be months supply OF goods IN the store
house. Now by telegraph and quick transportation
two weeks supply Is sufficient to have hand. Tbs
susz Canal bad great effect upon the markets Of Great
Britain aud India. These produce IN time Tlug
OF goods IN the market and then glut of capital.
Q.-How will this be adjustedl Alt will adjust
Itself within few years. The nation quickest catch
ing new ideas will relieved the first. England Is
showing wonderful progress now. After adjustment
new fields will open, and there will be greater develop
In regard 20 the Suez Canal. business az first dis
appointed everybody. It thought to be failure
The stock Of India goods produced reaction in the
market until there beginning on a new basis
QThen you think the depression is only tenn
pOrary, and win adjust itselfi ACUTE so.
Q-Can you cite any other causesi A.-Thore Is she
effect produced by machinery; lt dspaees labor and
locks up circulating capital. These are the inevitable
penalties for all improvements. The old loom for aak
ing cotton cloth cannot compete with new one The
owner Of the old one must buy to keep trade
During the past quarter Of a century machinery has
appeared in every branch OF industry, aud another
possible factor in the worldwide depression which
are undergoing Some viii be obliged 70 uDdergoa
period OF distress. while others VIII have lighter employ
ment. Machinery Is to the latter class cheapened lux
ury. Compare the agricultural manufacturing
ago. Take their mode OF living Their grandfatEes
lived IN small nl-yentilated rooms, with no sanitary
comforts. The same class to-day live In larger
rooms have carpets and many conyenience There are
plenty Of people la this country now whose fathers
we're displaced from labor by machinery and other
causes, and came 10 this country 10 seek relief.
They found t. and the children are enjoying the
fruits OF their parents distress and subsequent
perlty. People never TO this country until
driven from their native homes by famine aud
distress The Irish en was forced because tney
feared famine. Ireland has since worked Oug OF her
Distress and do IL also. These general cases OF
reaction are found all over the world Ihe Franco
Prussan war made an era Of the highest prosperity IN
England France forced TO sel'-dcnill, and sus-
tanned heavy taxation. Germany prosPered Tor ume
out there was afterward a glut OF capital thefe.
England then loaned her mouey To- doubtful gov
erEnIents and private enterprises, ana LOST H.
LOCAL CAUSES OF DEPRESSION.
0-What are the local causes OF distressi A.-rhey
date from the war. We spent four years destroying
property and then issued notes 10 pay for the
destruction. Now must practise sefdenia and bear
the burden In 1867 there was period Of depression
which lasted two years. People then willing 70
shoulder burden Of the war. In lobS congress post
pOned the payment OF ITS debts unth-some time OF
Issued all confidence destroyed. Every one knew
a crash would come but did not know IN what olfee
Mr. Rice-Do you believe that like viii cure like, 50
that would be relieved of our troubles by limitations
oIBy repudiation or national bankruptcy A-No;
tnnt would create crater evil Inc a and
eyrryoody thrown oui OF employment.
Q-would relieve the distress by paying the bonds
in sreenbaeksf Al can't conceive ~ such thing
ia lock my bonds in a safe and wouldn't disturb tnem
That system would create much fraud aud corruption.
Mr.. Hew.t-Do you know OF any existing eVDs that
could be obyiaiei by national legislation A,-heIl,
evil in the protective tarin IL causes dsPrOpo
o-The iron works in Great Britain aud this county
are both great distress although there Is Tree tgue
one case, aud tariff IN the other An single lh-
stances tho same phenomena may exist In THIS eOun
try free trade would redlstDute the population Ihero
ia enough laud here for everybody -
wtild he efsctiyei Achievement agents would then
appear and only the worthless would be cared Tor.
A private enterprise got up by puDhe-'pHeu "''"
Mr. Rice--Eobody seems to start one
Mr.. Hewitt-An income tax has Deen suggested as
means Of relief. Al am in favor of an income tax as
a matter Of finance not on graduated heone'iIis ~
would snpy be a tax on SKILL energy and ekeitOn ~
would check the energetic people, ana drVe eapS Jus
Q%Do You believe In tho Government providing
WORK A-No. IL would only produce ldIenesS t n.yp'
would believe then that the Government owed them
living, aud would think they were sure Of certain
enternrises ike the railroads A-The Post Odce. a.
enterprise, shows deficit every year uou 'A'~
such a course would be wise.
DISTRESS CAUSED BY LIQUOR.
William Il. Dodge was the next witness He said no
hid been engaged in business over fifty years and EN-
poyed about 1000 men. He had made caretm s'uoy
OF their mode living There was great distress an'ns
the class denomlnated rs noncapitasts' lie tnouBA'
bn much OF the suffering the country was due To the
sale Of intoxicating liquors. aud no desired 10 speaA"
re committee rs the President Of the National Temper
anee Society In the places where Mr. Dodges ny m u
manufaetores they had established villages or INC IRE
pOyes. No drinks allowed TO DC soli NItnin
limits " the village. The people praetised II s
lts aud we're able purchase their own hOms. III ~
cases the firm assisted them. The men had learh
ACCEPT wages the hrm was able 10 pay anu ~,
now enOyin season OF far prosperity AhlOns ,ss
tb,re was a moral OF government, anu eIiDie We
nrrtcalIy unknown Mir. Dodge attributed the welfare
OF tae men to their abstemtous tabts. ,.--...,.a
pr Rce-Do you think SIMILAR plan could DO auoP,s1
An other PLACES tho United states WIN IKE results ~
Al do dOuL believe IN Federal legislation ~ ". ~ ~
abolition OF intoxicating drinks. l would leave "
local option: .-,..,.- =. -, ..,,, i would