Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-10-05
HOW CAN We MAKE PROSPERITY STAY?.
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ring and speculation on gigantic
scale, Will operate TO prolong prosperity
Let Us Illustrate by a concrete exam
pie. Here r., let US say, city which
proposes 10 spend ten million dollars ON
certain public improvements. These
have been o. long time IN contcmpla-
toni but during the hard times the tax
payers have been inclined 20 oppose
such large expenditure Now. under
the general stimulus Of prosperity. how
ever, Il ~ proposed 60 undertake the
work The money " raised by the sale
Of city bonds and this volume Of de-
mnnd IN added TO that which is at the
present time operating 20 raise prices
% materials and Of labor 10 a atiil high
cr point Next suppose that instead ~
this course the opposite one were taken.
when prices have fallen TO more near
~ normal level The taxpayers would
then get much larger return Tor their
money expended. The volume OF de-
mand would come at n time whom 10
might be most welcome to mn the order
sheets Of mills which were nearing a
shutdown, and labor would be um-
plnycd which would otherwise be- ldlo.
IL u not fact thnt our seasons of
financial prosperity ana ndvCralty are
really due 20 fluctuations In the tide of
demnnd3 DO we not need ns much tn
check II IN time ~ prosperity aH Co
stimulate u IN times OF ndvcrslty7
Must we not, IN fact. DO the one In or
dor 10 do the othcr7
We wish TO emphasize. moreover. that
the course which u thus Indicated lH
really a sound financial policy. To so
40 the crowd roea ~ ~ contrary To-
good business principles 40 Il la TO the
larger financial intorcsts Of tho nation
Whoever ut the present timc oroctH
building. Cauipa O. mandatory. con
ntruCt. syftcm ~ water pupply, or
o. 81 a..
can be clnHaTd u4 permanent IN
vcstmcnt VIII receive a smaller return
for a given expenditure than at any
time Tor many years. Now H. the
time when nli purchases and Invest.
menta should BE- restricted 10 the lowest
possible point SOW is the worst pos
Hlhlc time 20 engage In lnrgc Invest
mcnts aud Hpoculationa, notw lthstand-
lng the fact that every ono r. doing a.
n o. the beet possible time IN pay debts
and not 10 incur them.
In the hard times q 1894 great
number of cities throughout the country
embarked In public works on large
scale. partly 10 rive a mcaus OF support
to the army ~ unemployed. aud partly
90 take advantage az the low prices.
| This waH not only a wirc method OF
| giving charity, but u was sound imam
cicflur. To give " fun effect. how
ever. the couyorH. principle shnuld also
/ be- adopted and ln times 81 great pros
/ purlty an public work except that abb
/ aolutoly necessary should br sct aside
/ ana iCft until "a return Of hard times
and low prices make its undertaking
/ advisable. The city which pays IT,
/ debto and onlnrgoH To- sinking funds in
/ good tlmcr. viii nnd itH houdR in eager
/ demand when hard times come. when
| Investors who have met loHs,s through
their specuintlons IN railroad aud In
! duatrill stocks compete with each other
/ Tor safe bond lfsups.
what IN good nnanclorlng Tor cluca
| Dr. also good Tor railway companies II
/ u better time 10 pay debts than 60
/ buy 1teel rails. or bridges. or rollins
/ stock. except in 20 FAR nn thpss may b.
absolutely necessary for the profitable
| operation Of the road Every COM
| pany which purruee this policy ia not
! only navlnE money fur IT, Htockhod.
orz. but " helping 20 prolong gool
! times and diminish tho shock ~ IN
! nncinl disaster when u comes Its
orders, which would now be- booked at
high prices and with long delays viii
b. eagerly sought for at eum0 future
day, and will serve TO keep some mill
going that would otherwise stand
/ idlc.
And what Il good Tor city and rail.
| way and other private corporations IL
| also good for tho nation. No one
! thinks much IN these days when all II
| Eold that glltter., and the newHpap era
| make w. an familiar with hundrei-mil-
lion-dollar schemes ION papcr), Of urg-
Ing economy IN the administration OF
government afiaira. Yet now IL the very
| time when economy n mos, impe native.
! All proiccta for permanent Improve
mentn. nll public building schemes, all
| river and harbOr work. all expenditure
on navy and coast defensc~, should be
given most searching scrutiny, and
! expenditure on them should be- reduced
to the lowest point Whatever can he
/ postponed should be-. Tho cuuntry'e
trade needs no ARTIFICIAL stimulus' on
| the contrary. every addition 20 the vol.
| umc ~ demand az the pN'acnt time
stimulates the innation % prices and
brings nearer the inevitable crash. Two
years. or ave yeara hence. tho governs
mcnt expenditure for such Improve
mants may be a most valuable means
81 rowling dro0Wng prosperity and
aiding IN Ne restoration.
The way 10 make the good times stay,
then ~ pimply 10 hold In reserve a part
~ the forces which are now pushing
the tide OF prosperity on toward ita
Hood, that thee may be- expended later
10 check the cbh, and leave az least
enough water In the harbor that not 40
many good chips ehall b. stranded.
II the nation, tho ftntos. and tho
cities, and an the great private cor-
porationa OF conservative management
and great financial strength were "a
adopt tho principle We have laid down,
who can doubt that our period of pros
pcrity might BE- long continued. The
tendency, as we have already pointed
out ~ an IN the other direction Pub
Nc onicoro and those In charge Of tho
annirH Of corporations are affected like
other mon by the glamour OF prosperity
and embark Ia large schemes which
thoy would not consider In times OF
financial stress Tho'o who do perceive
the folly Of such policy, however, and
who work against the tide, may have
the satisfaction Of knowing that thoy
arc working FOR tho Interests Of tho,
for whom they are trustees az well NJ
Tor the promotion OF sound and last
ing national prosperity Engineering
News,