New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-12-06
RITSINESS DEPRESSION.
AN OPEN LETTER IN REPLY TO CERTAIN
QUERIES.
EDWARD ATKINSON on TIE OUTLOOK.
TCopyytghL 1885

nv banking or mercantile establishment rather than 10
,nrset Immediate transactions depend not so much
,non what the facts really as they do upon wna'
,sople believe they are going to be- Hence, the man
ho undertakes to run any daily business, except the
nsrsular kind OF business in which am now engaged
namely under writing. by making any great use VI
atistics very far reaching views as to the great
forces I'm action will be very apt TO fall Even IN the
work OF underwriting, statistics and experience tapes
are pere guides to the Judgment of the UNDERWATER o'
are not a substitute such judgment. III, on tho
other hand you desire my Views on WHAT changes heio
have been in the great forces when IN the on9 run
courrul what call business affairs, shall DC happy W
1--WE Them you for what they are worth In SO DONG
cannot escape repetition bat 1t matters not Only
soossnt to your question because OF the PENDING
discussion silver coinage.
The common impression Is that the people OF th's
eountry and OF other countries in greater OF Iess
DEGREE have subjected TO period OF very great
depression In business affairs since the beginning oil the
wear 1882, thereat outs This may be true anu yo'
there period in this country In "hich
greater prog has made than during these very
three years The progress however, is at the cost Oh
small fraction OF the community Invention taxes away
the work Of the few In order that the many may enjoy
thereafter greater abundance; hence grent hardships
srise the period OF adjustment TO the new conditions
brought about BY inventions and the application OF
new forces to production and distribution The CIVIL
war itself gave great impetus to inventions OF
practical nature and may even have reused tue lmah-
alton Of by the very magnitude Of the operations
OF the itself to have enabled them TO cope
with the great railway enterprises the continent
end with other corresponding problems which they
might not have reached for many except for such
stmulus. TIE withdrawal of million Of men at given
tune from the of peace rendered invention necessary
aud gave a stimulus to the occupations OF women ty
opening new avenues for their work which they have
never lost
The price OF food half the pnce OF life-or rather
half the cost Of fe-measured In money, to the great
majority of the people of this and every other country
Improvement and invention applied TO the production
and distribution of food may therefore have become
prime factor in progress of humanity Since the end
OF the civil war the application OF machinery to agricu-
fu,e the application of inventions TO rail
and steamships have changed the conditions OF the
production Of food in manner never equslled in any
previous generation IN the history Of the world Alum
rules everywhere while scarcity might have ruled
anywhere except FOR these great Food products
constitute than half OF the traffic OF ali the
railways in the United States at the present moment;
this again brings another fact into cuOus notice
In 1880 the distribution or food BY railways at the
lowest possible had been perfected since that date
there has been no great change. The production OF
gram meat, ETC.. after 1SS0sl increased only 10 per
cent 1884, while the railway mileage Increased 40
Per cent having eliminated in the construction OF
1850 miles In the single year 1882 Between the
years 1882 and 1884 when the construction OF railways
had reeeded less than 1000 miles, not less than
600, 900 men were discharged from this wOrk.-mOSty
laborers This force constituted not less than
90 per cent OF all the male common laborers within The
limits of the United States that to of those who
answered 10 the in 1850 that they
common labOrers rather than engaged in any other
occupation. THIS suddezly discharged and somewhat
incapable force. after losing their occupations new
railways fell back upon the cities here and there. and
gave the appe aranCe OF numts OF idle persons
When their wages reduced to what they coud pick
up. or erased entely their consumption OF food was
redneed also, but perhaps more In quality than in
quantity. They we're compelled TO wear their old
clothes and could not buy for themselves or
their families. II they had families.
TIE Iedut ton in railway mileage caused cessation of
the demand for rails between the years 1882 and ss4
OF less than 100000 tons about IS per eeLt Of the
entire previous product o. rOa, and ano-Ler small body
OF men thus discharged thus tie cessation Of the
demand worked up from the lowest plane to highest
point yet the whole number OF persons out OF work at
any one time never exceeded II it could possibly have
equalled per OF ali who OF necessity engaged
In gainfu occupations within tne limits Of the United
States. The proportion Of people who are engaged IN
gainful occupations, who said 10 tle census enume
ratOr We employed for gain either in mechanical,
manufoo;urlng mental other pursuits"
person il each 80 OF the people. They NUM-
bered 17,4O0,0O0 Three per cent Of this num-
btT would represent idle force OF $4,000,
responding Substantially with the number Of
persons discharged from tie construction OF railways
the manner TO which 1 have already called your
attention. But is in the number OF
persons engaged IN gantu occupations. ana IN the
year 1854 they numbered 2O.OO0.OOO thereabOlts.
Three per cent OF that number would be 100000 Now
while there change OF function called for BY the
Cessation OF railSay construction, and tho whole
estimated number of 100000 may have
discharged from that and other customary branches Of
work does not follow that they all became idle. The
more intelligent portion DetoOk themselves 10 the new
lands which had been dey eloped by railroads
They aid not become idle but they became productive
units although their purchasing power limited for
two three years while getting themselves established
Hence the Cessation OF the demard for many kinds Of
manufactured goods cannot be predcated wholly upon
the number OF Idle persons but a change
OF Occ IpatOn. You will observe that the demand for
FOOD mas kept np throughout this period depression
The depression has affected mainly tAe workers in
aud in textile fabrics Toe lacK Of employment has
consisted IN lack Of employment for miners metal
lurgiss. factory operatives and common labOrers.
Tbess are we may say, conspicuous departments OF
society but not very numerous ratio 10 the whole
number OF people who are engaged IA all occupations.
il is in these particular lines that reduction IN wages
has occurred At the time the price wheat has
been reduced. Wheat again, il very conspicuous
feature In our commerce because II OF chief
exports But in ratio to the whole product OF agriculture
entire product OF wheat does amount to less
than 10 per In value While the price OF wheat has
been depressed the prices Ofea cotton and other nd
OF miscellaneous articles which enter into the consnmp
tion OF the WORLD have been fairly maintained Wheat IA
rGther product o. machinery than OF labor Here again
the depression has affected capital tau II mas
affected the price or labor Thus appears the
fact mat IN the progress OF the improve
pents IN production and distribution depression and
loss have affected the nch and considerable number o.
common labOrers, TO whom may be added Persons
an specific emplOyments, but the great volume OF com
inerce and occupation has proceeded upon It's accus
tomedway gaiuing steadily In volume year by year
1t may be the least cOnsic branches OF commerce
which work most efectualy toward human welfare.
The we'll sscertained value OF the products OF poultry
yards Ia and eggs exceeds the value OF the
bncd product of wool pig iron and silver Commerce la
dairy exceeds tue entire volume the
nerce In dry goods. domestic imported Tie value Of
meat consumed exceeds the value OF clothing. Ia
Dr0aa and general way 1t may ne readily proved that
IaDOIels AS separate class are decade 10y decade
scoring 10 themselves increasing share OF
Increasing product Adverse conditions affect only
small proportion OF their number year by year. High