The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-10-07
THE ASTONISHING EXPANSION OF
BUSINESS.

The New York Times, which is bitterly
concerning the stringency Of the money
market in that city, attributed it to three
causes, namely, 1.-THE enormous volume of
the country's business, the vast amount of
speculation in which 1t is engaged, and the
continuous withdrawal of currency into
the treasury The last, it says. would, in
ordinary times, pass without ommen
Speaking of the expansion of the countrv's
business, which it declares to be astonish-
ing. the Times calls attention to the fact
that a few years ago it was the boast of
our statisticians that "our mills and fac
tories were capable of turning out a prod
uct about double the home
The present condition is the reverse of that
which then existed. We are importing
steel biliets, pig iron and building material.
Our industries are running under such
pressure that of the $S0,OOO,O 900 increase In
imports last year s7O.OOO.ON was of raw
materials" The Times further quotes a
statistician to the effect that at the time
our steel exports were the highest, 90 per
cent. of the product was taken by the home
consumer, and that now the home con-
sumption of iron and steel is 5 per cent
In excess of the immense output of all the
iron mills Of the country.
This testimony Of the Times is valuable
and worthy of attention. In the first place.
1t lays bare the absurdity of the Demo-
cratic declaration that our steel manufac-
turers are selling the product of their mills
cheaper In foreign markets than at home.
So long as the demands of the home mar
ket are 5 per cent. greater than the OUTPUT
Of all the home mills and furnaces running
under the highest pressure, it is preposter-
Gus TO assert that their owners are selling
their products in foreign markets at lower
prices than prevail In the home market.
What is true Of iron and steel is true of
other manufactures. The managers of fac
tories did not import $40, OOO. 600 worth of
raw materials last year in excess of any
previous year to make merchandise to ex-
port and sell at a less price than is asked
at home. but because the goods are in
sharp demand in the home market.
What Is the cause of this astonishing,
expansion of business in this country? IT
does not prevail in Europe. 1t is not due
TO the opening Of new territory, but to the
generally increased demand in all parts of
the country. The cause for this expansion
or business. which Is on the surface. Is
the full employment of the wage-earninp
millions Of the country. For the first time
in many years the larger cities, as well as
the grain growing States, nave complained
of a dearth Of labor. The full employment
OF the wage-earning millions at higher
wages than were ever paid in this or any
other country has created a great demand
for the products Of the farm and the fac
tory. From the summer Of 1898 until the
autumn Of 1897 the problem with millions
OF people was TO make scant wages and the
returns from low-priced farm and other
products go as far as they would in the
purchase OF the bare necessaries of life.
The gradual recovery from the paralysis
OF the four years referred to gave the
wage-earning people more money to- ex-
pend for the products of the farm and the
factory. The result was an advance in
the prices Of many articles, particularly
the products Of the farm. The tillers of
the $4,000 farms In the United States had
more money with which to purchase the
products Of the factories. The result va