Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-07-23
4 TIMELY article
BIZ MR.. GEORGE W. HULL,
TO APPEAR IN AUG 1T "ENGINEER-
ING. MAGAZINE.n


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In the August number of the "Engin-
eering Magazine to be published in a
few days, Mr.. George w. Hull will have
an exhaustive article under the caption,
Industrial depression and the Pig Iron
Reserve, which is OF timely interest
and great Importance. Mr.. Hull has
made close study of his topic, and his
facts and ideas are well worthy the at
tention Of the business and commercial
world.
He prefaces his paper with the truism
that The first requisite for successful
study of this subject is a clear appre-
citation Of the difference between indus
trial depressions and financial panics, ?
and then proceeds to show that THE
former result from an abnormal adj
vance 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 elassed
under the head of permanent improve
ments. When these staples advance in
price as much as so to 100 per cent.
above their normal market value, a
large percentage of the building enter
prises of the country are stopped. This
throws a vast army of workers out of
employment, and causes a heavy de-
cline in the market value of all mater
ials used in these improvements. If
this decline in value be equal to the
preceding advance, it results in such
enormous losses that financial panic
lis the almost certain result.
In brief, industrial depressions are
the effects of great advances in prices;
financial panics are the effects of great
falls in prices.
"A financial panic is an acute mental
malady. It's beginning is sudden, in
tense. and startling. Its chief element
is fright 1t paralyzes finances at a
single blow, each subsequent step in its
course being an alienation. From it's
nature, it is short-lived.
AN industrial depression is stub
born physical malady. Its beginning
is SO quiet and gradual that it may go
on increasing for months unnoticed.
From its nature, it is long-lived. 1t
begins when everything is at the height
of prosperity. Let me give local and
recent illustration
"In the little community in which I
reside, there We're twenty-three houses
AhualE xnA all Af which were con-
tracted for before the advance in prices.
This kept the workers employed all the
year. A large number of residences
were planned for 1900, but when the
bids for these came in, it was found
that a residence which would have cost
100000 in 1899 would cost $3.50 900 in
1900. The result has been that as bids
have come in the projected buildings
have been given up; and, as the houses
contracted for at low prices have been
completed. the workmen have departed
If this be an isolated instance and
these workmen are finding employment
elsewhere, then 1t signifies little. But
If this be typical of what has been TAX
ing place throughout the country, and
they are not finding other employment,
then we have already made several
months progress towards industrial
depression
After setting forth that there were
22.0O0,0O0 people engaged in gainful oc-
equations in the United States in 1899,
he points out that the discharge of
five men out of each twenty-eight
would hardly be noticed in any COM
munity, and yet that would result in
a reduction of three thousand million
dollars per annum in the buying power
of the nations. Such a condition would
result in fewer hours of work and re-
duetion in wages to those still employ
ed taking away other thousands of
millions of dollars, and he concludes:
No other suggested cause of indus
trial depressions compares with this
amount, or in its blighting effect upon
the industries of a people"
After an elaborate compilation of the
earnings and total wealth of the Unit
ca States. the former being put at
13,6H $685. 600, and the latter at $685.
OBJ, 091 1877, Mr.. Hull says
No accurate figures are obtainable.
nut these estimates are on the census
OF 1880 and are sufficiently accurate to
illustrate the fact that there can be
no oyer-production when all workers
are employed. So long as natural con-
titions have unbroken sway. there is
no interruption to this vigorous and
healthy condition of industries. The
people consume what they need. from
day to day, and pile up the surplus
products OF their labor in permanent
possessions. 1t is during such periods
that the nations of the earth have ac-
cumulated their billions of permanent
wealth.
To find the cause of these stupendous
national calamities,. which amount to a
reduction of thousands of millions in
the earnings of the people and which
develop and creep over whole country
almost unnoticed, is the most import
ant question of the present day.
For the solution of this question.
the United States Congress appointed