New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-08-01
TOO MICH UEALTH. J


TOO Much UEALTH
I'm every side there are heard complaints tnat
tho business of the country is not satisfactory.
II il important on many accounts to understand
inst what these complaints really mean' and 10
determine as far as possible the causes OF such
dopression as actually exists. The operators
for decline in the various speculative markets
are ordinarily apt to exaggerate unfavorabe III
Huences. and there is also at this time strong
disuoston with newspapers and politicians o,
the Democratic variety to make the moSC anu
yo,st of business depression. But the men
whose means or whose industries depend upon
= correct understanding of the situation deSiIo
70 see the facts exactly as they are, wlthouO
nartisan or speculative bias
The most striking fact in the business sltua-
ton is that existing depression results Ill aiinoSO
avery instance from superabundance OF wealth.
Crops mean wealth. Large production means
addition to the resources and the wealth. Oh .n0
country. But where an industry is IN trouoio
II appears in almost every case to be tne colS0
ouence of production in excess OF pfeSehC "o
mand. The most extensive and important uiiii-
ouItv Of this nature is seen in the Soulhefl,
Ctates There trade of all sorts is retarded anu
II many localities almost reduced TO stagh".
zion because of the enormous production VI
cotton. The yield last year, though hoO S0S
ovactly known. was certainly in excess VI
600 900 bales, and more than l'VoV'VO
bales greater than in any previous year 81 4Iia
boen known, prior to the production ol Vnl'
oro, that the consumption of cotton III ilaiiu
f.ct1re had rapidly Increased in Great DIN.
ain in other European countries, ana ai'o III
tho United States. This increase had peeh 81
great that the price OF cotton WIS o, 1,. ..
advanced. and a year ago 1t was Sein"o
about 1244 cents per pound. Inc III p -
induced great numbers of Southern plhh'0iY
mt in more cotton than before anu 'nT
fiction of now railroads opened additional lailuS
70 cultivation. Thus it came TO pass VnaV INC
,.ioId croa4lv exceeded the worlds demahu lor
cotton Although the consumption appears III
Tho liobt Of factstnow available, to nave DeeA
LARGER within the last year than IN any PFC,
voar nevertheless the stock OF cotooh vi n'iiN
n rnrone on the seas, and in the Unlted 0ta'eS
,ooms N he about 500 900 bales greater CidIi
u was a wear ago. Following the oyer-pfouuc-
zion of last wear there is now expected aho.noi
cron about as large or possibly even larger 'ndn
,ho rrnrecodented crop of 1890. The oonSe-
ouanco IS that cotton does not bring reiiuiier-
alive price on Southern plantations, anu 'nVu
sands OF merchants are buying only scdn'i''
and giving as a reason their bellei 'iidV Vno
coming crop will so depresS the price OF co"oh
~ n cause serious disaster throughout tne 0ou.l
The chief manufacturing industry III tho
Northern States is affected to some eA'onU III
tho same way The production OF plS-iroh la''
roor was far in excess of the production III any
nrovious year Ii had been known thdO tho
CONSUMPTION of iron had increased win eA'r"or'
binary rapidity and it was assumed tndV even
the greatly increased output would be hneC ~
Tho demand. But the results have not sustained
this evpectation. The consumption appears 10
hovo declined and. although many OF the FUR
naceS have been imperative during part OF inc
last half year. the stocks OF uiisoiu HUI arc
nevertheless unusually large. In the WoolIen
industry something of the same dlihcuI'S up
ncars. The cotherS are buying goouS Only
| sparippIv. it is said, and for the reason UnaV
considerable stocks of clothing yet remain uii-
sold in the hands of traders The OBVIOUS eA-
rlonation is that the manufacture last year
LARGELY exceeded the demand, and IN cOnSe-
oncnco clothiers are carrying large body OF
Indebtedness from traders, and are embarrassed
As respects purchases for coming year.
II has never been found possible in any coun-
trv. or under any governmental policy, to pre-
vent over-cOnlidence, over-tIadlng, or over
production in certain branches Of industry Per
hans it may fairly be said that the extraordinary
confidence of the American people in their
growth and prosperity tends constantly to IN
duce excessive production in different branches
Nevertheless this difficulty is one which IN the
long rim results to the public advantage. The
low prices caused by excessive production com
mel traders and producers to cut down their
| costs and expenses to the utmost. They place
the materials of industry in the hands OF man
,,racturcrs ut q lower cost, and this results III
the end in a permanent cheapening OF products
for consumers Every such period of low prices
resulting from over-production in any particular
branch has been followed by remarkable i'm
movements in the methods of production, trans
portation and trade, and in permanent cheap
eninc of products. After the cheaper products
there always comes great increase in conSump-
ton also, so that the production which seemed
excessive presently comes to be no more than
enough to meet the ordinary demands.
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"PATERNALISM."