Connecticut western news., 1879-07-16
The Business Outlook again.

ED. NEwS:-I was pleased to read a com munication in your paper of last week entitled The Business Outlook The writer is ev. idently one who is capable of expressing him. self tersely and clearly, and Hike to, see such writers discuss 3nucticdl subjects in the news- papers. If they would do so more generally our papers would be more interesting and in. structive, and have greater influence in moulding public sentiment. Your corres. pondent says "It is evident there is a fair demand for the staple goods of the dealer and for the work of the several tradesmen. It is also plain that the money to pay for either or both is not easy to provide" This is certain ly singular state of affairs. The great diff ticulty then is a lack of money, and the ques
 ton is What is the cause of the scarcity? Y our correspondent answers the question in subsequent part of his communication. He says: 1.-The imitation and extravaganza of the war, followed by the reaction and con- traction of the past five years are ut the root of our present lack of money" That is it ex- actly- in nutshell. There is no doubt that the immediate cause of the business de- prcssion and hard times of the last five years. was the sudden and unnecessary contraction of the currency and the consequent shrinkage in all values To show it's disastrous effect, let me add a simple illustration to those of your correspondent. A. owned a small farm worth, say two thousand dollars. As money was plenty and business was good and lri,es were up, he concluded he would borrow 5000 to make improvements So he goes to savings bank and receives 5000" in green backs, which were then worth, say for the sake of illustration, 50 cts. on the dollar. Be- fore the loan is paid contraction comes and grcenbacks go up to 100 cts. on the dollar, and prices go down in about the same ratio. The bank, which really gave only $500 has now right to demand $l00e. The farm | that was worth double the loan, is now bare- | ly worth enough to pay it. The produce that was sufficient topay the interest wontnow more | than half pay it, and tho consequeEc. is that the bank forecloses its mortgage and wipes out debt and debtor alike. There are thou- sands of just such eases scattered all over the country, and they explain why people 1 have bought nothing since the hard times be-
 gan except what was absolutely necessary, why the clothing of one year was made to last for four why the old wagon cart and harness were repaired over and over again instead of buying new one, why farm tools
 were used as long as possible and when
 worn out ono thing was made to serve two purposes, and why the coat of paint, needful to keep off shabbiness from houses and fences, was not put on, and the leaky root was patched up by shingle here and there.
 And this may explain too, how it is that the capital of the country has been gathering in-
 to the hands of the few, and invested in non-
 taxable bonds, and the rich are becoming richer and the poor poorer. At least so it
 seems to me- Am wrong? If so I am open to conviction. Let us at least have free discussion nd let the truth be known though the heavens iall FIAT.