Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1885-06-27
dbe lanfaster 1ntelIi9enfer.
LANCASTER. JUNE 27, 1855.
What Of the NIghtl

Mr.. Andrew Carnegie who is supposed
10 be well informed upon the iron business,
and things generally, and who frequently
illuminates the world, says that the present
industrial depression is novel thing in his
experience of the article, because it is the
first time he has known it to be of world
wide extent at one time. He offers, in ex
PLANTATION of this universally, the opinions |
of Mr.. Goschen and Mr.. Giffen, two Eng |
lish authorities on finance, who find one |
reason for the fall i'm values in the fact |
which they discover that for some years |
back the supply of gold has fallen from
$75, 600 900 per annum to about 100000 600.
They say that a like fall in values was pre-
dicted by political economists prior to the
California gold discoveries which was by
them averted only to descend upon us now,
when there are no new gold fields in sight.
The theory of these scientists would
account for the increased value Of gold, if
their facts are correct; but we do not un-
derstand that any such increased value is
observable. The trouble in the situation is
that the money value of things is too
small. You cannot get as much for the
things you make as they cost you. The
reason obviously is that more are made han
are wanted. hesupply exceeds the demand.
The supply of money even IS greater than
the demand. Money is cheap. No one
complains of the dearness of gold. Mr..
Carnegie will need to have his English sci
entifc friends support their position with
their facts and logic to secure for it re-
spectful consideration.
Mr.. Carnegie is happier in diagnosing the
- diseaX i'm this country. He attributes it
to the abnormal extension of business few
years ago. we are on the down wave of the
business movement; or in the trough of the
sea. That is not an original discovery, nor
even disputed theory. Everyone recog-
nizes it. Trade is suffering from over stim-
ulation. Another fact which is almost
equally clear, is that the situation is being
prolonged by lack of confidence in the fu
ture. When every thing seemed prosper
GUS, everyone bought, and paid the price
under the influence of the shining sun
not thinking that it was going under the
clouds when it did, to stay as it did. And
now that it has been obscured SO long, the
generally tendency is to be faithless that il
is soon coming out and with this feeling
men do not prepare for it. When it comes
as everyone knows it is bound to com,
some day, the people are likely to be un
prepared for it and the consequence will
be booming of prices, probably to be sooI
checked by a revulsion and possibly a Sc
ries of advances and reverses will be tn,
feature of the business situation for som,
time.
Mr.. Carnegie sees no signs of an earl,
change for the better; and here his opinion
has value, because of his experience, il
not from his arguments. The basis of hi
opinion is the fact, which he alleges, tina
it is a I" law governing panics and stage
of depression when trouble comes tht
small, weak concerns necessarily fal
first over the land"; the stronger follow
and finally the garden is weeded sufficient.
for those that are left to thrive. 1t is tn,
survival of the fittest There is nothing
very original about that doctrine; bu
MI. Carnegie. finds that the failures
have not penetrated the ranks O
the stronger concerns as yet in snfli
cient force for the needed eliminations
and consequently he does not think W,
have reached the:turning point, and tina
that next winter will be more depressed
than last winter. There is novelty in tn,
suggestion that heavier business failures
must come before the business situa
ton rights itself. We have thought
that we had observed already tn,
collapse of many big concerns. 1t il
true that they still struggle on, despite
their collapse, and are not crowded out o.
the way. But they seem to be too big t.
remove. The fire sweeps over the land ant
scorches the trees, leaving the black
ened trunks still on the landscape
There ought to be enough of thes,
standing around to satisfy even Mr.
Carnege's insatiate nav. We do no
know what we could do to salts
fly his demand for more big failures, unless
we put all the railroads in the country into
bankruptcy and in truth they nearly al
acknowledge their insolvency now. Only
half score or less pay dividends to-day
and probably not one earns them. If Mr.
Carnegie thinks that big failures will wor.
business regeneration, he may look fol
one soon.