The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1893-03-07

or more timely service than to enact
such laws as will reach the abuse.
"One thing should be made perfectly
clear, and that is that trusts shall not
be allowed to undermine the business
welfare Of the country and prey upon
the people with impunity. They are
deadly foes to legitimate trade and
popular interests which should be con
Gemned by the voice Of the people and
suppressed by the law Of the land.
GLOSS MARGINS AND THE CAUSE
The crying injustice in the 5u-iress
world is said TO he the depreciation Of
values. There Is not Il manufacturer
miner, planter farmer, stOrekeepcr OF
creator CT exchanger OF values in the
land bu5 feels and knows thai prices Of
what he makes or sells are lower than
they ought to be and th E profits are
less than they should be or would be if
some other condition Of things existed.
No one can point out who it Is or who
they are Or where they are who are re
celving an undue Sta Of what they
sell. In every line Of production the
same comp amt goes up. In every
commercial channel the slna iamenta
tion Il heard Of low prices and narrow
margins, and with theSG C ne tberCtlec-
ton that IS something coud be done
thTngS would b. ,tEeren5 EhiS Is vnlY
vague What IS TO b. GOlc2 TINS
feeling is deep, that something needs
to be done that some ghera in cur
com pick order OF society conditions are
not III accord and thar If they could be
put in accord a general Improvement
In business, in product on, In prices, In
profits, i&eeneral and individual credit
would take place
Is not lumber too lov2 Are not IRON
AMI steel makers comp aiming Of low
m3rgHS2 Are nOt the cotton mill own
ers de- laring small dividends under the
hest commercial management? Are
not traders doing business on hair
bre sdth margins?
In casting about for causes and rem
edies we see the former quickly enough
or imagine we do, bat not the latter
Such diseases cannot b. readily cured
The causes have been running too long
p time. Let us make note of a few,
Production has be1n expanding with
remarkable and even alarming rapid
ity> Machinery has been chGapening
and multiplying everything it touched
Railroad building has opened up vast
regions to enterprise and labor. \
monetary sy tenn has fac. .litated eX
changes ana stimulated energy. The
result is abundance Of cheapness
Hence we would anticipate II creas ed
wealth. But the bulk of our Increased
wealth is in increased facilities, in
plants. machines and machinery-in
means for making mere.
But just when we have, after a gen
er6JiJu Of intense activity, reached
that point, 10! an obstacle or new con
ditiOn arises Who will take our in
creased production Reciprocity,
shouts one crowd. We will open the
markets of our sister republics to cur
surplus. The great West will ops n is
jaws and swallow all we can spare In
creased consumption will appear ever
where and all that we can turn out will
find ready market. Are these antiCi
patlOns realized? No. Profits keep
even and business men act cautiously.
Take o glance across the water
among the nations of Europe. where
to day 5 600, 600 men are actually under
arms awaiting the signal TOR war. The
banks Of Russia, Austria, Germany,
France and England are and for three
years have been sCrdmbllng for gold
for two reasons: First, in view of a
p
they believe to be the most valuable
kind Of money. The vaults Of these
banks are piled high with gold, drawn
from all gold producing countries.
Notwithstanding we export one hun
dred million dollars worth per anpum
more than we buy from foreign coun
tries the gold Is carried from our vaults
until the stability of our own fnancIal
system is almost jeopard!z d and
means Of legislative protection are sug-
gested. But what Is the connection
between all this and narrow margins
and low prices? is asked. If we sell
our gold co We not get what we regard
as an Equivalent? Not exactly. Hun
dreds Of millions of dollars worth OF
American securities are held abroad,
for which we have foreign money with
which we do business. As long as
these securities stay abroad it is all
right. We are willing to pay interest
on them But the trouble comes when
these securities (which simply repre-
sent borrowed money! begin to roll in
on US AMI we have to take them back
and part with the principal or the en-
ire amount the securities call for. This
Is what takes the gold out. This re
turning of securities obliges US to bor-
row to pay them if matured. In other
words, while we are able to pay inter
est on borrowed capital, it makes US
poor II we have to return the principal
which is about what we have to do
and which is the secret of low prices
oT0H nor ma q