Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1878-10-11
THE "HARD TINES"



Two European economists George de |
LAveleye, Of Belgium, and a writer (sup
posed 10 be Max Wirth) in The Neue !
Freie Presse of Vlenna-have been dis. |
cussing the question whether the world |
is ever going to recover from the prevail |
ing industrial and commercial debres.
sion. The first named writer takes the |
negative aud the latter the affirmative.
Laveleye thinks that the revulsion which |
occurred almost simultaneously in so |
many countries in 1873, was the begin.
nlng OF permanent change in indus |
trial conditions, hence return to former
prosperity, or what seemed to be pros.
Iei y. is not 10 be expected. In support
OF this view be urges that Europe aud
America have nearly completed their
great commercial highways railroad,
canals, tunnels aud the hke-and thai
therefore there will be comparatively
little employment for either labor or
capital in these directions. lie does not
think that such projects as the canal
across the Isthmus OF Darien, the max.
ing OF an inland sea OF the Desert of Sa-
hara or the construction of railroads in
l
the newer countries are OF much conse.
quence, compared to the work of similar
kmdsthat have already been completed.
Poor counties will notbe able to borr ow
because their credit is impaired, while
rich countries, finding no employment
for their capital abroad, will fall TO de.
vouring it by speculation and extrava-
gance at home. Asd so be thinks the
world is moving in the direction of uni
versal poverty.
The writer in the Freie Presse takes O
more cheerful view Of things. He points
to the fact that the French minister OF
public works recently subn ited to the
chamber Of deputies project for the
construction of $8,000 900, 900 worth of
railroads and canals. He thinks thai
fact indicates that there is still an out
let for capital in the construction of
such works
To judge from the brief extracts of
the essays Of Laveleye and Wirth now
accessible, both these writer's attach TOO
much Importance TO railroads and canals
as channels of investment. They
seem to assume that prosperity
consists in the mere act of constructing
SUCH which is Ike assuming that pros
perlty consists in merely making tools
for use in the different handicrafts. or
that in q new country it consists in max
ing roads and bridges and that it must
forever end as sooa as good roads TO
market are provided. The great modern
highways are nothing but roads of new
kind. They are tools OF commerce so
TO speak, aud unless they excsed the re.
quIrements of commerce they should
contribute more tU prosperity after they
are completed than while they are in
process fconstruction.
10 making the transition from the pro
duction of something usi full with the
tools there is almost necessarily halt
When men suddenly discover that they
have made tools enough and must turn
their attention to making something else,
they are for while greatly puzzled
IFhey cannot tell in an instant what TO do
with their cspital-they cannot tell what
the world is iR want OF. Their capita
lies idle for a time aud labor has to lie
idle with it. When laborers are idle they
are forced to restrict their consumption
hrhey buy less than usual and it begins TO
look TO the capitalists as though the
world didn't want anything for which it
could pay. Hence follows period of
stagnation, dependency and distress
more or less prolonged But the people
are in the world as much as ever, and
they want as msch as ever, aud by and
by the capitalists begin to find il out.
Wages are low because Of competition
among idle laborers, materials are low
for like reason and 90 be ventures to 20
into some kind Of production, He EN-.
ploys labor laborsrs are able to increase
their consumption, this encourages rival
and extended activity in production with
like results respecting consumption,
until the world is OF work again as hard
as ever, is Gs prosperous as ever-and
even more so, because Of the improved
istruments of produetion-and is full
Of hope and confidence and is ready to
embark in hazardous enterprises and
speculations, which culminate in another
revul,ion when the like phenomena Of
idleness of labor and capital, of doubt
distrust and hard times again present
themselves SO moves the world in its
economic cycles, on the whole making
progress all the while and never going
into a permanent decline or sinking into
abject poverty through the very supera.
bundauce of wealth.