Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-04-26

| In forty joint stock companies in Lancashire.
| OF this number fourteen paid no dividends at
all; others gave only half, and some even
| less than quarter of what they had dlstrlb-
uted IN 1871. Passing over what n; Bio oc5
1 says about the depression in the United
States, we find that France enjoys a privi-
| legged situation In the commercial world, and
| is scarcely at all affected by the stagnation OF
! trade which is complained of elsewhere.
| The exports have slightly diminished from
1855, 900, 900 in 1875 to 1875, 600, 900 in 1878.
| But it 10 only the exports of raw products
which have diminished; for the expectation
of manufactured articles was nearly $11 ,OOO,-
| 600 more in 1873 than in 1877. The taxes,
both direct and indirect, which, of course, are
paid only on business or consumption, are
greater than the estimates, and the public
| funds are at high figure.
| PERIoDICITY OF CRISES.
An ingenious explanation of the recurrence
of crises, or alternating periods of prosperity
| and depression, is given In the StGtiSt, OF Dc
| tober 10, 1878. According to this Journal,
the reason of commercial crises every ten or
| twelve years is that the vigorous activity OF
IA generation of merchants and manufacturers
| is scarcely of longer duration than the inter-
| val between the recurring periods of depres-
| sion. In few establishments or works does
| the same person remain any longer than ten
or twelve years as the real director or main
| spring of the concern. Some die, others
change, their position, and others make their
fortunes, and take things easily. Younger
| men come in-men who have not had suth-
Gent experience or learned commercial Wis
dom-and they will pass IN their turn. after
having filled their period OF Office. Besides
this theory, which is very ingenious, and
others which ascribe the periodicity of these
crises to the periodicity OF sun spots, which
are thought to occasion famines-a coinci-
dence that cannot be entirely proved-there
have been many circumstances to a2gravate
the evil; for, putting on one side the effects
of the famine which has ragged in China and
India, the economical calamity has had two
completely independent seats-Europe and
America.
THE CHARACTERISTICS OF CRISES.
Although the Franco Prussian war was by
no means the startingipoint Of the European
crisis, it gave TO it dehniteness OF character.
Even had peace been maintained the crisis
would have come on account of the tendency
to speculation, but probably it would have
been purely financial one, whereas the war
made it an industrial crisis. The war inter-
rupted the production of all great countries,
besides causing an enormous destruction ct
material and produce which had to be re-
paired as soon as peace was declared. The
demands coming from the two countries d.
rectly engaged In the war of 1901 were
supplemented by the orders of the Russian
and American railways, which were then be-
ing pushed on with great rapidlty. They
naturally resulted III great rise of prices,
and as this was rise which gave business
an appearance of prosperity, coinciding with
toe intense and feverish speculation, people
began to enlarge their factories aud build new
ones. When everything was readyorders were
less frequent, ana competition only fastened
the inevitable fall In prices. Every country
had Its particular COM llcations, which made
business languish still more. Bat the two
countries IN Europe where labor compllca-
| tons exercised the greatest influence were
not, as might be thought, Russia and Tur-
key, but Germany, 3hich, by brilliant strug.
giles, had reached the end it had 80 long
striven for, and England, country OF pro-
verbal wealth.
THE EFFECT OF THE GERMAN INDEMNITY.
The FIVE milliards were Nessus shirt for
Germany. Abundance of money in the
country, busy speculation IN all ways, caused
an enormous increase IN prices AID wages.
Certain wages doubled and more IN less than
two years, occasioned, naturally, by the very
extraordinary demand for labor but greatly
increased by speculation, which competed
with real and solid production. The manu-
facturers, however, were so burdeDed by cur
rent orders that no price frightened them.
Workmen were greatly IN demand, and had
| besides, IN being exigent, desire to have
| their share of the cake. The great progress
of socialism added greatly to this. Work
men pro6ted greatly by this conjuncture,
getting better paid, working shorter time,
and, as has been proved, dong their labor
not go we'll as when they earned less wages.
But they did not profit by it in lettering their
condition. The higher wages which they
earned so easily were quickly spert. When
bad times came they had acquired habits of
which 1t was difficult to rid themselves, and
had lost the will to make the necessary effort
to keep production on certain level The
IF hat IrAu has
more trouble than it would have had at other
times to tind its equilibrium, for the externa!
consumption and the expectation have dimin-
ished at the same time. This effect is not
so much seen in other countries, because So
cialism has not made such great ravsges else
separation between the employers and the
workmeu becoming so great.
THE PHILOSOPHY OF LOANS.
Another cause of the difficulties surround
ing the crisis Is ascribed to Germany, al
though it has not produced there its serious
effect, which is seen chiefly IN England; that
is, the enormous depreciation of silver, caused
mainly by the adoption of the gold standard
IN Germany. This, however, Is too compl-
Gated subject to be discussed here. An
o her aGgravating circumstance for England
Is that th.t country has been too ready to
lend money to foreign States, forgetting the
maxim of Lord Palmerston, that high rate
of interest always argues poor security. Of
the forty-six debtor States in the table pre-
pared by the London stock exchange, only
eighteen pay with exactitude the interest on
the 81 400 DOC, goo which have been lent to
them. The twenty-eight others have bor-
rowed 1857 600, 900, of which more than
$500 900 are totally lost, while the inter-
est on the remainder Is very irregularly paid.
In addition to this 1t should be mentioned
that the number of failures of late years, es-
pecially that of the City of Glasgow bank
the history of which discloses frightful
amount of corruption IN some sections of
British commence intensihes the existing
depression. An English writer MAINTAINS
that the bad harvests of 1873, 1876 and 1877
are to be included among the causes of the
crisis. 1t is possible to be mistaken, because
the price of grain did not rise IN the same
way as it did at other times of bad harvests
and as it has In other places; but, although
bread became no dearer, 1t is certain that
the farmers experienced sensible loss in
their harvests. Mr.. Card estimates this de-
felt as twenty-five per cent in 1875, twenty
four per cent. in 1876, and thirty-siY per
cent. in 1877. What, however, is specially
aggravating In these same years, is that the
cattle have diminished. In 1874 there were
estimated to be in England 6,l25, 900 head
OF horned cattle. At the end of 1877 there
were $4,000 less. In the same trienuial
period out of Sc, 3l4, 900 sheep 2, 153, 900 we're
obliged to reduce its consumption of manu-
featured goods, and the banks most In
relation with the cultivators were able to |
notice that their savings, if any, were very
insignificant.
AGRICULTURE AND MANUFACTURES.
But the great fact to which M. Block |
desires to call attention is the rupture of the |
equilibrium between agriculture and manu- |
features. 1t is impossible to establish fixed, |
permanent and mathematical relations be- |
tween these two branches of national indus |
try, but still we feel that some connection |
must exist. A purely agricultural country |
is always poor one, generally behind the |
age and often governed despotically A |
purely manufacturing or commercial country |
lacks solidity. Agriculture long predomina-
ted in the civilized world, but manufactures,
especially during this century, have taken
its place. Oae noticeable result of the
progress of scientific discovery and its
application to industry is one which few
people consider-that the population of