The age-herald., 1900-07-30
PIG IRON RESERVE 
 AND DEPRESSION
Industrial Disturbances and Fl- nanciaI Panics in America.
THE CAUSES AND REMEDIES
Way to Bring Pig Iron Under Con- trol is to Accumulate in All Countries Stocks Equal to
 Seven Months Supply

George H. Hull, the iron statistican, has prepared a paper on Industrial Depres- sions and the Pig Iron Reserve" for the Engineering Magazine of New York, wnich will be published in the August number ot that periodical. It is a lengthy paper In part MT Hull says:
 ''The first requisite for successful study of this subject is a clear appreciation of the difference between industrial depres- sions and financial pancs. The former re- suit from an abnormal advance in the price of the great staples of the country, principally those used in the building of houses, railroads, and such other works as are usually classed under the head of permanent improvements. When these staples advance in price as much as S0 to 100 per cent above their normal market value, a large percentage of the building enterprises of the country are stopped This throws a vast army of workers out ot employment, and causes a heavy decline in the market value of all materials used in these improvements. If this decline in value be equal to the preceding advance, 1t results in such enormous losses that financial panic is the almost certain re- suit
 "In brief, industrial depressions are the effects of great advances in prices; finan- cial panics are the effects of great falls in prices.
 "A financial panic Is an acute mental malady. Its beginning is sudden, intense, and startling. It's chief element Is fright. It paIalyzes finances at a single blow, each subsequent step in its course being an al- deviation. From its nature, 1t Is short lived
 An industrial depression is a stubborn physical malady. Its beginning is so grad ual and quiet that 1t may go on increasing for months unnoticed. From its nature, it is long-lived. It begins when everything is at the height of prosperity. Let me give a local and recent illustration.
 Conditions of Depression
 'The conditions of industrial depression are, first, discharge of workers, and just in proportion this takes place the earn ings of the people are reduced. This, in turn, cuts down expenditures and lessens demand. As demand falls off, production is cut down and more workers are dis charged. Thus the five elements of depres- characterization of employment, of earn ings, of expenditures, of demand and of production form an endless chain, each acting directly upon and diminishing the other, each feeding upon and intensifying the other. The restoration toenormal con- ditions comes only after a lapse of years. It comes finally simply because the natural condition of an industrial people is to be at work. The worker who Is thrown out of place immediately tries to find other employment He wishes to earn, that he may buy When all cannot find employ ment, it is because there is something wrong with the indstrial system. When minimum number are employed, they earn barely enough to supply the daily needs of all, and there is no increase in wealth. When all workers are employed in some gainful occupation, their earnings are so enormous that they not only absorb every thing that is produced but there is an im- mense surplus which goes largely into per manent improvements, increasing the per- sonal possessions of the individual and the wealth of the nation This is legitimate prosperity and cannot be overdone. There is safe limit, and this is reached when all the workers are employed.
 '"rhe earnings of the twenty-two mil lions of workers in the United States in 1890 are estimated at thirteen and half billion dollars, and this does not include incomes from investments.'
 Gainful Occupation
 Here follows a table in which is shown the percentage of all persons engaged in gainful occupations in the United States by classes and groups on the last three census years.
 Group A includes bankers brokers, manu- facturers merchants, proprietary farmers professional pursuits, agents, commercial travellers, bookkeepers, clerks, salesmen, etc., percentage in 1870, 3416; in 1880, 35.96; in 1S9O 3S87
 Group B includes mechanical trades clothing makers, metal, wood, leather and textile workers, steam railroad employees food preparers, etc. Percentage in 1S7O 2O33 In 1880, 20.92; in 1S9O 24. 10.
 Group c includes agricultural laborers, servants, general laborers miners quarry men, draymen, hostlers, street railroad em- ployes, etc. Percentage in 1870, 45.5l; in 1SS0 43.92 in 1890, 3703.
 The net products of all industries, includ- ing farms, manufactures, mines, quarries, fisheries, etc, are estimated at something over seven billions:
 So long as natural conditions have un- broken sway, there is interruption to this vigorous and healthy condition of in- dustries. The people consume what they need from day to day, and pile up the surplus products of their labor in perma-