The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1895-03-04

was some relief after 1878, but still
there was constant pressure compelling
reductions of rates. In 1888 the crash
came The roads have not only been
unable to pay dividends, but have been
unable to keep up their equipments.
Thousands of miles have been compelled
to seek refuge in the courts.
1t so happens that the year that wit
messed the greatest losses in railway
earnings was also the year in which
the fewest miles of new railway have
been built during the past twenty years.
Now, then, IL hard times and business
depression caused the enormous losses
that the roads have suffered during the
two years, we think it is duty that
the railway managers owe to the own
ers of the property they control and to
the public generally to inquire as to
the cause of the hard times and the
business depression. They need not
go very far below the surface of things
to find the cause. They have only to
investigate the matter in an impartial
way. They have only to compare the
facts Of recent history with the results
of their experience.
What causes prosperity? What causes
hard times and business depression?
The cause Of prosperity is the ability OF
the people to exchange the products of
their labor easily, promptly and at
prices that will permit producer, con-
sumner and middle man to share part
of the profit. The cause of hard times
and business depression must be the
reverse OF that which makes prosperity
the inability of the people to exchange
the products of their labor at prices
that prove remunerative to those who
share in these transactions.
The medium by which prompt eX-
changes are made is money. In this
country the money is gold Gold doml-
mates all transactions and fixes all
prices at its own level. FOrmerly-un-
til 1S73-the money by which exchanges
were made was both gold and silver,
ana although there had been suspen-
sion of specie payments, our system was
bimetallic and that fact had an over
whelming influence on prices.
In 1873, our minis were closed to sill
YER The immediate effect of this was
q sudden increase in the value Of gold,
and a sudden collapse in all other val
ues. Thus was produced the panic of
1878. and times continued bard until
the Rland-AllsOn purchasing act began
to add to our stock Of primary money.
Times gradually grew better until 1898,
when Great Britain closed the minis in
India to the free coinage of silver. ibis
act, by increasing The value of gold, and
all currency redC2mGble therein, pro-
duced the panic of that year, and the
panic will become chronic until some
event occurs that will tend 10 depre-
ciate the value of gold rs compared
with the products Of human labor.
While it is true that there has been
little visible or physical contraction OF
money i'll this country in the shape OF
retiring or Cancelin@ currency, it IS
also unfortunately true that there have
been no such additions as the increased
population and business Of inc country
demanded. At this mOment-ai our
currency being rcdeomablc in gold-a
poDulation of T0.00O.000 is trying to do
business on the amount Of money and
currency that was available for prosper
ity in 1860, when the population employ
ing that currency WAS not much above
30.0O0.O90.
The whole trouble lies nc"c. The peo-
pie have not been permitted 10 take adj
vantage Of the additions 10 their stock
of primary money that would have been
made if the minis had been open 10
silver The dearcr money is, the lower
the prices of al commodities: the lower
the prices OF commodities the smaller
the amount Of money that gets into rhe
hands of the people; the smaller the
amount of money the people handle the
less there is 20 80 into the channels OF
trade and business; The deeper the de-
preston in trade the smaller the earn
ings OF the railroads.
We advise the corporation magnates
to look into this great question. We
do not ask them 10 agree with us; we
merely invite them 80 look into ito
approach it with minds open 10 con-
viction.