Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-02-03
CAUSE OF DISTURBANCE.

After all, republican papers are not
the only ones that contain good deal
of tommyrOt and the undesirable sort
of demOGog'sm, about panics and con-
fidence and Or sperity. The matter of
laying the blame for hard times on the
fellows in power, whoever they are, is
carried to an extreme. The average
politician does not look below the sur
face for causes. They are many of
them much deeper than gold or silver
or even currency. 1t is largely in our
Industrial organization. Panics seem
to be more or less common to every ma
ton that is we'll developed in all the
modern arts and appliances of com
mercial exchange. England and Aus
tralia experienced a panic about as
severe as ours and some assert more so
about the same time it came to us 1t
is noticeable however that in gold
standard countries the shocks are more
frequent and severe. This is because
in these countries the system of credit
is furLhur developed and the element
Of confidence" more essential to busl-
ness operations.
Another element that enters in is
OverprOdnctiOn. This may seem like u
surrender to republican argument, but
it is not. With modern improvements
in machinery, production in competit
i've lines is carried on more rapidly than
distribution and consumption can,
with the present wage system, be eff
fected. The trust with Its exact
knowledge of amounts being consumed
limits Its production accordingly and
accumulates no large surplus, but not
SO with competitive factories. They
manufacture and accumulate BY and
by some great financial institution
which has been too great user Of credit
is informed by some other great insti.
tuition, it can no longer be 'acccmmo-
dated" and fails. Its failure brings
the downfall of others who spread the
financial infection and panic is on.
People hoard their money and buy no
more than necessary. The manufact-'
urers who have accumulated big stocks
cannot sell them and shut down. The
industrial panic follows the financial
panic in quick succession. In this con
dItiOn the passage of free silver bill
nor any other financial measure would
do little good as measure of immedl-
ate relief. Time alone can cure the
fficulty. The timidness must wear
Dff and old stocks must be consumed,
a demand before industry will
be resumed. What measure of ''pros
perty" has come to the United States
in the last year has been due to good |
crops and to shortage abroad and to the
fact that old stocks of manufactured |
products are entirely exhausted and
more must be manufactured to supply |
The absolute needs of the people.
As to the remedies to prevent the re-
Of these periodical panics and
there are several The
currency should be supplemented SO
hat such an extended use of credit for
which confidence 10 but another term,
would not be necessary. Something
IhOuld be done TO make the places of
deposit for the peoples money absO-
utely safe without, at the same time,
it from circulation AS
o remedying the matter of over pro-
luctiOn, we say frankly that under the
system we know Of none.
With the extention and multiplication
If trusts, however, there soon will be
10 competitive manufacturing bust
hess. Then the question will resolve
tself into the problem Of the trust
alone. In the end the result will be
nat the government, which is the peO-
pie, will own the trust and they will
share in the profits.