The morning star and Catholic messenger., 1879-02-02
THE CAUSES OF ENGLAND'S CONNER
CIAL DEPRESSION.


is now suffering has been frequently essay
ed with varying success, bat the most
striking attempt to interpret this dlh1cult
problem is made in the current number Of
the Princeton Reriear. The author is
Thorold Rogers, one of the most sturdy
thinkers and trenchant writers in Eogl land,
who was formerly, and is still, we believe,
Professor of Political Economy in Oxford
University. 1t was Mr.. Rogers who first
announced some fifteen years ago the note
worthy fact, that when the price of any
commodity rises, the greatest appreciation
inevitably takes plsce in the lowest quail
ties of the article. I5 was he, too, who
used to say, about the came epoch, that
there were but three clever Incn IN Oxford,
to wit, Jowett, G oldwin Smith, and another,
whom modeety would not suffer him to
name.
We must premise that the English econ
omist's conclusiops would have been more
satisfactory if he had compared the state
of things in his own country with the rela
lively prosperous condition of France, and
accounted for the difference. Some of the
causes which he assigns for the prostratlon
of trade and industry are quite as applica-
BILE on one side of the Channel az on the
other. Nor can we think the superior COM
mercial morality which undoubtedly OBJ
tains in France, explains the escape of that
community from the general depression.
There is, we think, a specific and potent
source of disturbance to which Mr. Rogers
has not referred. but which, as we shall
weight on the British Islands. With this
proviso, we may draw attention to his
suggeetions, which are set forth with
singular lucidty and vigor.
The Professor finds the most important,
general, and enduring cause of the fall in
prices and arrest of production throughout
Great Britain in the rapid rise in the econ
omical value Of gold. He points out that
while the annual produce of this metal Is
probably not more than sufficient to cover
. the annual wear and tear, yet the demand
for it has been abnOrmally,increased by the
monetary revolution of the past FIVE years.
This dearness of gold has been reflected in
fall of prices, which entails loss OF pro-
fits not only on the stocks of fabrics which
have accumulated under the agency OF
higher prices, but on those parts OF pro
d1cer's capital,s such as buildings, plant,
and machinery, which were called into
permanent existence while these higher
prices ruled. No doubt this phenomenon
may be remarked under more or less acute
phrases in all European countries; and
even in France, where the tolerance OF
double standard checks the natural effects
of the drain of gold, it may be traced IN
the partial eclipse of certain Industries
But the result must needs be profound and
striking in the case of world -purveyor
like Great Britain, both because gold ia
there the only standard of value, and be-
cause tho accumulations of etock and the
volume of capital locked up in the applian-
ces of production are far greater than t1ey
are elsewhere.
After ccnceding that the general tdecline
of prices has been specially furthered In
England by local overproduction, Mr..
Rogers goes on to make the significant
concession that the tendency has been fur
ther aggravated by practices which have
hn nOa1itV 0f the nrOGnct. and
damaged the reputation of the producer.
He tells Us that this fraudulent expedient
has been extensively adopted by Engllsh
houses, come manufacturers having lately
asserted that certain goods are loaded with
rubbish to a weight double that of the
original material. But of course adulter-
alton practised on tie consumer only
differs from forgery practised on banker
in that the evil induced is more far reach
ing and lasting, since it affects trade gene
rally, and not traders individually.
An additional AID, in Mr.. Rogers Judg-
ment. heavy blow was inflicted on British
Industries by the Russo-Turkish war, and
the consequent curtailment of the demand
for British fabrics throughout eastern Eu-
rope. 1t is certain that Turkey had always
been q great consumer of English goods,
while very considerable quantities were
imported into the northern empire. Nor
can we doubt that the recent contest, pro-
. lopRed and destructive az it was, must
have gone far to exhaust the purchasing
mower of the district which lies east OF
Germany and Austria from the Baltic Sea
to the Mediterranean. War carried on by
wealthy nations may stimulate the demand
for foreign products, as we know it did in
our own case, but war waged oeEween
mens of eager and successful business. The
Commerce of the world had to suddenly
dispense, except ia some unimportant par
ticniars, with tie tradc of some sixty or
seventy millions of people, and in the face
of the other facts above referred TO O. II trds was
should be augmented especially In the
United kingdom, which hitherto had the
largest business relations with the countries
lately involved in war. A..
We cannot but think, however; that
Prof. Rogers overloOks the most efnelenV