Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1879-07-25
Hard Times-.-The Causes and the REM
eOy.

have before seen, and teaches a lesson which |
all should ponder. The writer of the article, |
Bonamy Price, is Professor of Political Econ |
omy at Oxford University, England, and n
leading authority in matters of trade and
finance.
A great deal that has been published upon
the subject of the prevalent depression in
business has been idle speculation or the
twaddle of ignorant demagogues, and has on
ly served to aggravato the evils of the situa-
ton.
To understand the matter let us consider a
few plain propositions. In the first place,
what constitutes commercial depression ?
A want of buyers. And how come buyers to
be few and weak? Because there is an i'm
mense dimnution of the means of purchas-
ing. And in what does the power of buying
consist? In goods % gice in exchange. Here
is the whole problem in n nutshell. The
question of money, concerning which many
people have such erroneous Impressions
does not enter into the account Money,
strictly speaking, is not property it is sim
ply representative of property-a tool and
nothing more 1t renders no other service to
mankind than as a medium of exchange it
does not add to, nor diminish wealth the
world would be just rs rich without it.
Whether country is prosperous or depress-
ed, the quantity of money contained in it va
ries only by trihing amounts. The only
method of producing wealth is by labor.
When n man has gone TO work and produced
something, he has begun to acquire wealth.
He then has that which he can exchange for
the productions of other men, or for the rec
| ogniZod symbol of those productions
money. 1t is by mems labor that the civ
ilized nations of the world have grown rich
nay, it is through the extended accumulations
of labor that they have become civilized. Let
a nation relinquish all labor and it will
speedily recede to barbarism. Poverty means
barbarism; wealth implies civilization.
A favorte explanation of the business de-
preston is found in the phrase "over-pro-
duction." Production, people say, has been
overdonc; the natural wants of consumers
have been exceeded by speculative manufac-
turers. That this is true in some instances is
undeniable. The existence of the excessive
stocks and the disniissals of workmen are ev-
licences which cannot be gainsad Never
theless, this is not the bottom cause Of the
difficulty it is the second stage of the dis
ease not the first. General production
is practical impossibility. The world, says
Professor Price is far short, as yet, of that
stage, when there is already wealth enough
when no one desires to have more enjoyments.
and when he will make no industrial effort to
obtain them. The maximum of necessaries
| MI iG.u lo.s of 1taI
by mankind. The reverse is true millions
of men and women have not enough to con
sumo. They want more and work for more,
and this means that by producing more there
is more trade and that all are better off.
This increased production moves upon the
old lines. Each branch of industry furnishes
more goods, and these can be sold easily, be-
cause each producer has larger supply of
his own products wherewith to purchase
those of others. Great production on every
side can not imply scarcity of purchasing
power and of buyers, but the direct contrary.
The continuance of production after the
means of buying have disappeared may east
ly become excessive and generate mischiev-
Gus effects; but that excess will be the of
spring of under production in some quarter
which has suspended its ability TO trade. We
thus arrive at over-consumptiOn, that is, the
consuming and destroying more wealth than
is made, as the true explanation of that com
mercial depression which may be termed uni.
versal
But how has it come to pass that the mean
of buying. the quantity of goods to exchange
have been so fearfully reduced The professo
answers this question by referring TO the ter
, rible famines in India and China, the excessive
investments in railroad building in the United
States, the destructive wars in Europe ant
the English colonies, and the vast speculA
tons engendered by these.
And now, what are the remedies to be ap
piled for the mitigation and ultimate termin
alton of this depression with all its suferings
Many of various kinds are proposed will
much passion. One especially is advocates
. with great fervor by the working classes an
D their advocates. 1t takes its stand on the as
sured fact of over-production. 1t impute
b the blame of the calamity to this alleged pre-
: ceeding and procaims that the cure will b
obtained from It's direct opposite. Nor
goods, it argues, are made than consumer
can be found to buy and they sink to price
which can not meet the cost of production
l. Reverse the practoe-make less, 1t is veht
! mently urged; work short time-and a cur
" will be effected. 1t is admitted that the maj
/ ket can not clear of the goods at existin
Il prices, and that the laborers must receiv
e less remuneration Let the reduction be tai
IT en- in five or four days work a week instea
=, of six-the rate of wage per day will then b
J. kept up. The over-production will be stoI
n ped, and all the goods made will be sold an
81 in good time the sunshine will again real
e pear. This policy is founded on complet
d misunderstanding of the nature of that indu
W try which supplies the life of mankind wit
is those commodities which are summed up
is the word wealth. country is rich whe
rs much is produced it is poor and its peopl
is live at a low level, when there is little mad'
l. little to divide among them. Now, what doe
le this policy counsel? Make less let there
l. less wealth Work four days a week instes
lie of six let the price of the goods and the RAJ
is of wage remain where they are now Al
s. such men unable to perceive the obviol
m truth that, if every man in a nation workt
IS half the time and produced half the quantit
m of goods every man would be only half
cs well OF
t. But worse still The preachers of this pc
rs icy make two assumptions which are perfec
W ly false. They take it for granted that Il
le cost of production of the goods and the
r price will both continue unchanged. III
ps very reverse Of this will take place the goo'
b, under short time will be dearer to make al
to dearer to sell. In every manufacturing bus
at ness there are heavy charges to be face
of which will not be reduced by working few
n. days in the week Interest ON capital will
he the same, so also the rent of the building
ul the expense of pumping up water from Il
ed mine, the charges for superintendent m
lg office-work, the wear and tear of the machin
as ny. These expenses were charged on q
m production of six days they will now fall
in the goods manufactured in five or four, ~
Mt inevitably they add to the cost of their pr
he duction, and consequently to the price viii
en- must be demanded for producing them. MAJ
on of the buyers who bought the goods of 4
ng five days will now be unable to afford then
We the over-production will be increased, the
re- preston more intense and the necessity
* further reduction will become irresstib