The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-01-15
CAUSE OF THE DEPRESSION.
Not in Tariff and silver so Much as in
OverproductiOn for Years.
Providence Journal

PrOVluence journal.
There seems to be a remarkable failure
in most quarters TO understand the real
cause of the depression in industry and
trade, which has cast its dismal hue over
well-nigh the whole commercial world and
which is reflected with only too much plain
ness in the annual reports of the last years
business that are now coming from all the
leading countries. This failure is partly
owing, no doubt, to the common habit of
taking short views and of satisfying our
selves with surface causes without trying
to search out the deeper ones. But in great
er degree ii is owing to the prejudices of
men-their disposition to place the RESPONSE
bility for their troubles on the particular
fact or policy towards which they happen
TO feel the greatest personal hostility. So
1t comes about that the tariff reformers
insist that the depression has been caused
by too much protection, while the protec-
tionists declare that the cause is the fear
of the loss of that projections: and the so
called gold-bugs are not more loud in main
tanning that it is reckless silver experiments
which have brought us grief, than the
silverites in arguing that our mistake has
been in not giving enough consideration to
their metal.
Now there is no need of disputing the
fact that both the tariff and the silver ques-
lions have been factors in the unsettling of
values all over the world. But when we un-
dertake to interpret the almost universal
depression as the result of either tariff or
silver as a sole cause, we discover at once
that neither is sufficient. There must be a
deeper and broader cause than any of these,
or both of them together to account for so
these columns yesterday that, if search
were to be made for this final and funda-
mental cause, il would be found in an ex-
cess of productive capacity over immediate
consumptive ability. This thought Is elab-
GRATED with much clearness and ability by
the New York Commercial Bulletin. which,
in reviewing the recent course of things in
the business world, brings out several con-
sidera tons that should be carefully taken
into account as going far towards explain
ing tire apparent collapse of the commercial
structure and the blight which fell upon
trade and industry at the very moment
when the height of prosperity seemed to
have been reached.
We seldom stop to think what great
changes have been made in the world in re-
cent times by improvements in the aplica-
processes. The greater use of these forces
of nature has not only cheapened the cost
of manufacture in every line, but it has
given quicker and cheaper transportation,
and a marvellous expansion of all the means
of INSTRUMENTATION So great has been the
effect that the Commercial Bulletin thinks
il would be quite within the facts TO say
pair of hands has, within the last thirty
years, been increased on the average fully
so per cent The same important considera-
ton is brought out in Mr.. Arthur /. Bow
leys recent book on "England's Foreign
Trade" The increase of each mans power
of production" he says, appears TO have
been greater than the increase of produc-
proved so fast that fewer men are needed
to work it; and since only those who
csiVe wages for work or interest from
profits purchase it's products, we have
the machine continually producing more
than customers are ready to buy"