Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1885-01-23
The Present Depression.

Mr.. Ed9t0f "A consideration of the pres
ent depression in trade, its causes, and, pos
slbly, a remedy, may well be made profit
able subject OF study After decidedly
productive season, (agricuturally consid-
ered) we yet find, TO use the popular ex-
preston, that "there is no money in the coun-
try" Trade also has scarcely ever seen
more slack time, and in consequence the
wages. receiving class, all over the country,
is in decidedly unprosperous condition.
Money is in the country somewhere. Where
is it? and what is it that impedes its free cir
culatonH The first question has already to
some extent been answered in my preceding
letter. The consideration of the second
shall be made the subject Of this one.
At present the state of affairs is this: A
vast reduction OF wages is being made in
every class, and at the same time prices of
all articles remain at their former level, In
other words, the purchasing power of q
large class of consumers is directly ourtailed,
while prices, both of luxuries and of neces
sites, have undergone no reduction. In spite
of this, there is no dearth of all these art.
Giles Of trade. If there were, the value of
money would be increased On the contra
ry, the market is, In almost every depart
ment, oyerstocked, and the present reduc-
ton in wages is direct consequence ofthis.
Over production is now the great trouble
How to create such demand for articles of
trade which will cause a reimbursement of
demand and supply, is the great problem
A consideration of three important subjects
which have direct bearing on this matter,
may aid us In discovering the cause of, and
possibly also the economic remedy for, such
u general depression as at present exists
These subjects are list. The present rate
of interest on loans. I'd. The present un.
necessary and exhaustive system of taxation.
Sd. The restriction on foreign trade imposed
by our present government.
eral prosperity of the country tho present
rate Of interest will be found to be too high
The incoming Administration is pledged to
more or less of q iree-trade policy, but no
such policy can be successfully worked out
with another free-trade country, whose rate
of husiness-interest, as in the case OF Eng
land, is little more thar half that of our own
Interest on loans regulates trade to a great
extent 1t is very clear, then, that in a
country where loans can DO procured at a
comparatively low rate, the manufacturing
industries can undcrsell those whose rate is
higher AT present wages are so low that
the demand for what is produced is brought
down 10 lis lowest limits. But If capital
were procurable at lower premium an i'm
petus would at once be given TO the manu-.
featuring industries. The use of capital
would be eagerly sought, and articles of
trade rapidly produced, whilst capital could,
so to speak, be procured so cheaply. En-
ployment is thus at onoe given by the mills
TO full force of operatives. They in their
turn, feeling the effects OF continued pros.
perlty caused by permanent employment, at
once cause consumption Of both neces-
saries and Injuries. And it is a well-known
TACT that the lower classes, mill-hands &c,
regulate their expenditure by their wages,
and the more the latter are Increased the
greater the consumption of Injuries that
will ensue.
The sufferer by this measure would, of
course, be the capitalist. 1t is possible that
the above proposal may have the color Of
communism. Against this | would strenu-
ously wish to guard. Every economic prob.
lem has To be solved by the counter question !:
How can the greatest good be wrought for
tho greatest number? In this case the CAPT
tallsts are decidedly in the minority, and !
hold 1t perfectly constitutional to assert that
u measure which benefits the majority Of
people should strictly be enforced This in.
wolves the question, already considered in
former letter, of the lessening ol the distance
between capitalist and laborer The COM
petition amongN borrowers which would
follow a reduction OF business.interest would
Of itself tend to replace it at its former rate.
But an effect, similar to the present, would
necessarily ensue, nor would prosperity re
turn until REIMBURSEMENT had taken place.
As regards my second, taxation, it is fact
well'known to every man that the nation
Is annually paying into the United States
Treasury one hundred millions Of dollars
more than is necessary to meet the re quire-
ments OF public affairs. 1t is but political
sop on the part Of those in power when the
proposition Is made 10 expend this surplus
for the public benefit The very expend.
ture would but afford an opportunity for the
preparation of some more public frauds,
such as have been only too common under
Republican administration. How Is the gov
eminent justified, in the first place, in talk.
ing the money from the peopleY Is not the
primary object OF taxation 10 provide fund |
10 meet government expenses? Ii so, no |
right exists for the levying OF |
one dollar more than is necessary for the !
Of that object for which taxation /
Is imposed. Hence, In one sense, we may
hold those in power responsible for much
)f the present trouble II is well TO clamor
hat the hundred millions be returned To
ls-it is far better to guard against the hun.
lred millions being stolen from us
Lastly, we come 10 the consideration of