The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1885-11-18
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A QUESTION OF THE FUTURE.

A QUESTION OF THE FUTURE.
American business relations seem placed
between the devil and the deep sea. One OF
the things needed was a closer approxima-
ton to profit. better and more regular rates,
and a general appreciation of values by our
railways. The recent compact OF the trunk
lines was thought to be long step in the
right direction. Rates were raised, stocks
appreciated and signs of activity were
manifest in money centers. But here we en-
counter the other horn of the dilemma
as freight rates are raised corn
and wheat decline, as the profits of a rail
Slight margin on grain is destroyed, and
what is gained by the operators OF railroad
is lost to the producers of grain.
The fact is apparent. Competition of other
grain producing countries has reduced the
price OF grain. and in fact. many other com
mOdities, so much that there is not a living
profit in it for both the producer
and the carrier. Great Britain re-
quires about 100000 bushels of
wheat more than she produces, and the
United States could alone supply the whole
of the excess without limiting her own re-
quirements But there are the States of
South America, Austria. Russia, the States
of North Africa, Australia and India. who
all have a surplus to aid in supplying this
excess. France, Germany, Italy and Spain
nearly supply their own requirements, and
when they fail so to do, the deficit is small
when compared with the total excess of pro-
duction. British buyers practically have the
grain at their own price, which seems to be
limited only by the costs of transportation.
Now, when railroad. in order to induce
a farmer to ship his grain, reduces the
freight rate to point where the farmer
may reap a profit. the railroad is doing
business at loss. If the railroad exacts
a rate that would make the carriage
profitable, the farmer is doing business
at a loss. So far as the country at
large is concerned, ii makes no matter which
way the loss comes; its results are equally
disastrous. In fact, so far as these produc-
tons are concerned, the country would be
no worse off if the crops were not marketed
i'll Europe, because the sum of the costs
equals or exceeds the sum of the receipts.
and the economy of railroad and the econ
omy of wheat production is reduced to inter
State necessities. Generally speaking, the
New England States are the only ones who
do not produce their own breadstuffS, which
leaves but a very slight market for the West
ern surplus, and only slight business for
the railroads to do, as measured by their
capacity.
The same result is apparent in several
other staples, notably in cotton and pork,
and their products, and it is less and less
clear how or when this condition of things
will improve. 1t would seem to US that the
dissemination of these industries through
so many sections of the world
places an efIectual check upon us again
controlling the prices of these products, and
it is altogether probable these industries will
languish until the production is generally
curtailed.
But we have our railroads, our farms, our
common roads, court-houses and other costly
internal Improvements, all built under a
better and more profitable condition of
things, that win not pay profit on their
costs at the present valuation of products.
Whether the products will raise to the level
of a cost entailed by a previous condition
of things, or whether the costly machinery
engaged in producing and handling the pro-
ducts will shrink to the level of the present
or even future lower value, is perplexing
and anxious question. 1t is by no means
confined to the United States. The cotton
industry of Manchester is paralyzed by the
fabrics of Bombay and Lowell, and the silk
industry OF France is threatened by the pro-
auctions of the United States. of South Amer
lea, India and China; while the development
OF all is retarded as the area of competition
is increased, and as each locality becomes
more and more Independent of another To-
cality. 1t is true within the United States
The iron industries of Tennessee and Ala
bama are threatening those of Pennsylvania
and the growth of manufacturing in the
West is as much in opposition to the inter
ests Of New England as the latter were
against those of Great Britain.
The industries of the world are undergoing
a change, and no one is yet shrewd enough
to see how or when they will reach
an equilibrium. Great quantities of labor
and capital have been put into i'm
provements; and taxes, insurance and
the cost OF maintenance must be made
or such fiscal institutions viii become