The times. [volume] (Richmond, Va.) 1890-1903, 1894-01-06
THE KEY TO THE SITUATION.

In very thoughtful review of the
year 1893 the Journal Of Commerce, OF
New York. remarks that the year will
stand out in commercial annals as one
OF extraordinary Significance, as being
the eliminating point Of a series Of
changes Of unprecedented importance in
the worlds Industries.
The improvements in the application
OF steam power and the manifold APP
pllances OF electricity have, IT says, revo-
1utionized productive processes, quicken
ed and expanded transport, and marvel
ously expanded the means Of inter-com-
muncation. The introduction of these
new powers has stimulated inventions,
and in every industry the cost of manu-
features has been thereby cheapened
1t thinks that II is quite within the facts
to say that, from these causes, the pro-
duct OF pair of hands has within the
last thirty years been increased on the
average fully 30 per cent. An author
of repute, Mr.. Arthur l.. Bowley, in his
book just issued on Englands Foreign
Trade, says, 1.-THE increase of each mans
power OF production appears TO have been
greater than the increase of production
itself. The great machine has been i'm
proved so fast that fewer men are
needed 10 work it, and since only those
who receive wages for work or interest
from profits can purchase its products,
we have the machine continually pro-
ducing more than customers are ready
to buy. Our system of trade has devel-
oped so fast that we are no longer able
10 manage it,
These are very deep reflections but
their truth and justice are obvious to all
thoughtful men. Our ever-increasing
mastery of the arts and sciences is MAX
Ing production so cheap and so easy that
the question OF the hour is. what is TO
be done with what is produced. II is no
longer, as OF yore, a question Of how shall
we supply the demand? The question now
is. how shall we find demand for the
supply?
The misguided silver men, who toppled |
over an unsteady edifce undermined by |
this surplus OF supplies. mistook the symp- |
toms OF the disease for the disease itself |
They saw prices steadily going down for
the past thirty years. and they supposed |
that was because there was not money
enough with which to buy, whereas
regardless OF abundant money more
people wanted to sell than wanted to buy.
The silver men have precipitated a re-
adjustment Of conditions through the
medium or a crash that has covered the
whole face OF the country with wrecks
and ruins. But the readjustment had 10
take place The difference is that II wouId
have occurred through natural processes
IL the silver men had stood aside. ana there
would have been no ruin, though a new
order OF things would certainly have
arisen
The panic has now got everything into
process OF readjustment but one. and |
that is the price of labor \ stubborn
tight Is likely TO take place at this point
which may seriously affect restoration
OF easy and smooth movement, and the {
attitude OF labor may block at this time
|
lions. For the past thirty years every
thing has been falling in price by reason
OF increasing production except labor. and
that has been steadily rising in price. Is I
Il possible for that state OF things 10
continue2 Our own opinion is that IL is ,
not, aud that IL behooves the men who (
are In authority in the councils of labor ?
10 take the matter under serious consid- :
ration and determine nationally. and !
without passion. on a just and equitable
line 10 recommend TO laboring men. IL l
Mil be easy to produce the readjustment .
by the state OF the cost In a
agricultural labor. That Is unorganized a
md responds quickly to the necessities {
hat arise. But the labor engaged In .
Is almost all skilled labor;
he men are intelligent and organized, c
ina naturally resist any move towards a n
'sduetion Of their wages. But a condi- D