Natchitoches populist. [volume] (Natchitoches, La.) 1898-1899, 1898-10-21
DISAPPOINTMENT.
THE WAR BRINGS HARDER TIMES
INSTEAD OF BETTER.

THE WAR BRINGS HARDER TIMES
INSTEAD OF BETTER.
The Plain Reasons Why This Gold
Standard War Causes Business Depres-
sion While the Greenback War Caused
an Era OF Prosperity.
The business interests OF the coun-
try generally looked for a revival OF
trade as the necessity and inevitable
outcome of the war with Spain. To
say they are disappointed is to mildly
state the fact.
The expectation that war would dis
pei the condition of business stagna-
ton, bordering on paralysis, that has
hung like pail, not alone over this
country, but over all gold standard
countries during the past FIVE years,
did not take into account the control
ling factor in the case, says the Silver
knight Waterman; namely, that the
expenses of the wal were to be met
through taxing production and en-
larging our Understanding debt,
without providing an increase OF
money supply to meet the increased de-
mand.
Remembering the tremendous impe-
tus that business received during the
civil war, many reasoned that favor
able trade conditions, better prices,
and better times would inevitably fol-
low the vast expenditure by the gov
eminent that war would necessitate.
This would be true ii the eXtraordl-
nary conditions inseparable from war
were accompanied Ivy an increase or
money supply commensurate with the
increased demand for money occasion
ed by the war.
The withdrawal Of $4,000 able-bod-
led men from the field of competitive
production, to be fed, clothed, and paid
wages from the nations treasury, thus
being transferred to the field of con-
sumption, would naturally tend to i'm
prove the market The equipping, pro-
visioning, and transportation OF an
army calls for a vast expenditure OF
money and furnishes employment and
hence the ability to become consum-
ers to thousands aside from THOSE
composing the army itself. All OF
which by drawing from the normal
labor supply and creating an enlarged
demand for the products of labor OF
all kinds would, under conditions that
would permit of 1t. cause wages to ad-
vance and advance the prices of all
the products of labor.
But when 1t is remembered that
prices are governed by money sup.
| ply it becomes evident that an addi-
tional demand for money, unaccom-
panied by corresponding additional
supply, makes condition under which
an advance of prices is impossible
and fall of prices becomes inevitable
/ The present war presents case o.
this kind and hence has brought NJ
improvement to the general business
of the country. The increased demand
for money, unaccompanied by CORE
I spending increase in the supply, hal
made business conditions harder thai
before for all, except those having
contracts to furnish supplies to tn
government, who have been exemp
from many of the conditions of tn
| general competitive market. Unde
normal business conditions there woul
not have been 81, 250, 100000 offered t
the government in exchange for bond
bearing only per cent interest Sue
an offering on the part of those havin
capital shows universal diStrust c
business investments and dispositio
to avoid investment in property, tn
incomes of which are affected by tn
general prosperity Of the country, an
to seek investment in bonds, whic
are money features, the income froI
which rests upon the taxing power c
the government.
The majority of the finance commit
/ tee of the United States senate pre-
posed, in addition to levying war ia!
that the government coinAthe $42,0 600
900 of silver seigniorage now lying i'd
in the vaults of the treasury, and
addition to this issue $150,000, 900, c
so much thereof as might be nece:
sary, of legal tender. non-interest beal
ing notes of the government. Had tn
plan been adopted we would have ha
an increase of the supply of none
which would have caused general ri
vival Of business, with better price
for products; the labor of the countr
would have found employment at IA
wages, and there would have been Il
necessity to increase the interes
bearing debt of the nation.