Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1878-09-11
Hard Times.

lines are hard. 1t may be admitted thai
here are some grounds for this complaint.
nasmuch as it is doubtless true that there
is generally less business activity, less
demand for labor and for capital. than
1t some former periods. Agreeing tn
this extent to the justice of the COM
plaint. it may not be wholly Improbable
10 consider some of the causes for such
hard times as exist.
An individual who should get heavily in
lebt by borrowing money largely and ex-
pending it freely. would, when payday
anne, be quite likely to find the "times
different; and those who had shared in, or
profited by his liberal expenditures. would
.lso notice nm unpleasant change in thei
financial condition. This country is going
somewhat similar experience.
rhe government became purchaser.
Turing The rebellion. of what cost more
than four thousand millions of dollars.
md great part Of this was new de
mand, and 10 the extent 10 which it was
expended in this country and it wa
mostly spent here-it was new market
for the labor and the productions of the
country. At least three thousand millions
of this expenditure was obtained by bor-
rowing money. The natural consequence
followed; labor and productions advanced
in price, and would have done so to a con-
siderable degree had there been no depre-
citation in the real value of currency; the
capital loaned to the government was dis
ubuted. and producers were benefited by
it; manufacturers, producers and specnla-
tors grew rapidly rich, and spending their
money freely made still further demand
for the productions of labor; the laborer
getting higher wages, in his turn became
larger consumer, and so contributed to
stimulate the manufacturing and produc-
ing industries; and rs a necessary result
" times" were easy, and everybody had
money in his pocket, and enough to do.
In addition to this borrowing and spend.
ing of money by the national government.
millions upon millions-into the thou.
sands of millons-were borrowed 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 indi
viduals abroad and at home, and although
stolen in part, yet in part spent in build
ing railroads, and in other Improvements
which everywhere. for the time, largely
stimulated and developed all kinds of bus
mess activities, and gave abundant ant
remunerative employment to labor; and
so far rs this was done by states and mu
inequalities, debt was created that is nov
being paid. principal or interest, by tax
alton.
During the war million of able bodice
men were taken from the ranks of produ
GERS, and became only consumers, ant
this, lessening the supply of laborers ant
at the same time increasing the deman'
for the products of labor, gave all kinds 0
labor increased remuneration.
States, towns, and cities, as well as tn
national government and individuals, in
creased largely their ordinary expendi
tures,-and have kept up some of that in
crease until the present time,-some of
by taxation, but much Of it by continued
borrowing and increase of debt.
For six or eight years the country ha
been going through the natural sequel i
such state of things. The demand 70
labor and what it produces, and alon
with it, as always happens. II demand 70
money or capital, has fallen off lai gely
Everywhere individuals, municipalities
corporations are buying less, and const
quently sellers and producers complain {
dullness in trade The nation is paying il
debts, contracted in flush times, when
is not repudiating them,-but the publ
debts are only paid through grindn
taxes, and corporate and private debt
are often liquidated in bankruptcy-an
tie burden of these payments. and III
losses that reputation and bankruptc
bring upon creditors, force an economy
that is in every way just the reverse c
the easy process of running in debt an
liberal expenditure. The one is the dow
grade, the other the return; natural ten
dences help the one, they hinder the othel
Railroads are Improbable, their bonds ar
scaled orrepudiated entirely, and thei
stocks are worthless; and those who in
vested in them have lessened incomes an
must lessen their expenditures. Interes
on government bonds has been largely re
duced from six per cent to five, four and
half and four, and this also reduces in
come, and therefore expenditure. Iror
cotton and wooden mills are standing idle
or working on reduced time and wage.
because of the falling off in demand fc
their product, and here are less wages
the laborer and less dividends or none +
all for the stakeholder, and again les
money to spend Money is plenty, fc
rates of interest are low because capt.;
cannot find profitable employment, and tn
hanks and money lenders never made lie,
than now. The government bonds, an
the bonds of railroads are held largel
abroad, and so far as they are being paic
take the money and the products of Ii
country for that purpose; and this explain
what is now often called the large an
favorable balance of trade,-we sell MOI
than we buy, but we sell to pay our debt