The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-08-27
DEPRESSION OF LABOR.
View. Of Men who Have s'udlea the Sub

| report. IL II WQElI FeUuiIIs ac'ei"i 'i'Hs9'
Mr.. Hewitt-Have you given attention
to the causes OF depression under whicl
the community is suffering? \. i have
given some study to the question but can Z
say that l have yet fully mastered the sub
iect. II can be viewed theoretically aud
historically. The present crisis Is only
one OF series OF similar crises that have
occurred in the history OF commercial! na'
tons during the past $50 years. There
have been a dozen such instances before
which have been MS far-rcaching. In eve
nv cnse the crises has been preceded by
period OF extrayagant speculation IN differ
ent forms. During the year 1873, IN TINS
country II took the form OF gigantic rail,
way and land speculation. Prior 70 lS0a
the average amount OF railway building in
the United States was less than 1900 miles
n year, when it suddenly rose to 1900
miles; in 1870 It went up to 5000 miles;
1871 To 1000: in 1872 It was between 1000
and 1000 miles, and in 1873 between 5000
and 1900 miles. This increase in railway
speculation was accompanied by enormous
speculation In lind, In the West, among
tic uncultivated prairies and In city and
suburban real estate. This era Of specula-
ton was the approximate cause o. the crl'
ses. Similar crises have always been pro-
duccd by similar causes.
Q.-Railways are good things in coun-
try, are they not? A.-Certainly, every
railway is Of great value i It can pay OPP
Grating expenses. The obligations incur.
red in the purchase OF vast amount OF
real estate at large prices could not be met,
Values became fictitious. You must meas
ure YOUR accumulation Of wealth in some.
thing Of value-dollars in this country,
pounds sterling In England. These ficti-
tious values had to be resolved into gold;
Property estimated at a high figure could
not be converted into its value in gold.
AS soon us the people found that they
could not afford to pay dollars when they
had agreed to, the crisis was the natural
result
O.-F[ad the nature ofthe currency any.
thing 10 do with it? Avery little, |
Q.-what induced this era Of spccula-
ton. then? Al Such period OF specul-
alton MS existed in this country, will set IN
periodically. twill come regardless oil the
currency. Whether it is irredeemable,
or gold or silver money, the same thing
will happen. $50
Q.-Aiter the Government postponed
resumption in 1868, did not that lead to
speculation? A.-The season OF contrac-
tion WAS of very short duration. IT only
lasted six and a half months, and had lit
tleto do with the speculative era. specu-
iation was going on in England ut that
time.
Odd machinery play IN important
part in the speculative era? a. Inc IN
PRODUCTION OF machinery always causes a
great deal more to be produced than Is con-
sumed. This leaves surplus, and a sur
plus tends to bring protis to minimum.
When capitalists find that the profits are
diminishing, they are drlven'to extremi'
ties to find use for the excess OF capital:
New investments arc tried. In that way,;l
think. an err OF speculation Is started:
The crisis OF 1925 In England was preceded
nv a vast extension OF Its commerce to
South America. Capital was exported to
find Investments.
Odd the destruction Of capital during
the war cause an cru Of dearthH Al
don't believe there was any great destrlie-
tion OF CAPITAL then; not III the North.
CAPITAL is OF two kinds, fixed and floating.
Fixed capital consists Of houses, steam
boats, land, etc; touting capital is compo;;
sed az cOnsumable commodities. Tho fi&eu
conital was not destroyed in the North.
Not more than one.tenth OF the National
debt went abroad until the last year OF the
war. As soon Ms the war was ended anu
foreign countries saw We would pay our
promises they bought our bonds and the
bonds of our cities, railroads and
and c0rporatlona, During the war the liked
capital increased and tbs floating capital
was not reduced. Certain natural rcsour-
eos were destroyed, those that came from
The bowels OF the earth, such as lead, iron,
copper, coal. Mnnuiaetuturers had large
stock on hand prior to the war, which WIS s,ls
greatly decreased; the difference was tue
loss, The makingup OF these losses pro-
duoes actiyity and period OF speculation;
Q.-Can tho Government intervene aug
become tho employer o! laRorE, Al
such scheme were ever begun II would
be impossible TO tell where to begin ana
O.EWould it be possible to get back to
period Of prosperity by imitation? A.
II would be u great Injury to the country
and A herculean task. The wlsest men In
Congress would be puzzled.
O.-Could Congress undertake vast
amount OF public works to employ the idle
labor and give stamped paperin payment?
A-That would create National pRnk-
ruptcv, and universal or individual bank
ruptcv. People obliged to exchange mon
ey for fixed values would DO ruined, a
| forced division OF property on somewhat
Communistic basis mightbe one OF the re-.
suits. ..,.
from repudiation? A.-Wc would have to
form n new Government, and In time ro-
assume the debt which had been repudiat-
ed. Other countries have repudiated their
debts, But in this case we are abundantly
able to nav the debt, and It would be pure
voluntary Reputation.
O.-Would change In the tariff system
he of ayail In present difficulties. A.
Protective thrift produces an abnormal
condition Of things II temporarily slim
mates industry, but leads TO loss OF capital.
believe in a freer tariff but not in u
sweeping reduction onall protective duties
The duties on raw materials should not NC
so great Us to discourage an easy exchange,
With articles OF luxury 1t " very different;
Q.-Would It be wise 10 have Federal
/ Legislation regulate tne nuuts VI mvoi
1A.-Such a course would be an hiring
ment Of liberty.
OFT has been suggested here that one
class OF the community possesses super
fluous wealth, while another class Is stRrrv-
ling. Could you suggest any legislation BY
Which a portion OF the extra money could
be transferred from one class to another.
IA.-Eyery legislative attempt to transfer
capital makes the rich richer and the poor
Q.GWould It be feasible for the Govern
ment to COLOMBO the uninhabited lands in
the West? Al think 1t would be a
hazardous thingfor the Government Its
mnttcr OF charitable, enterprise. 1t is
much the same rs tho issuing OF charity TO
the sufferers In Memphis. NM.
VIEWS OF CHARLES FRANCIS ADAMS, IN.
f,,..,o. Irorris Adams. ir.. of Quincy.