The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1904-05-07

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trial panic such as
the ones with which we are familiar"
said Colonel Monroe. The old fash
Loned panic IS now an impOssloLtty."
why do you make that predlctionT
For the good and sufficient reason
that we have installed 4 new industrial
system" replied Colonel Monroe. The
panic OF 1878 was Upically an indus
trial panic There was another one IN
1884. but It was OF less intensity. The
panic OF 1898 was OF i different char
acter. 1t was more OF 4 financial or
speculative panic than an industrial
one An industrial panic is a stampede
Of manufacturers aud merchants who
suddenly make the discovery that there
Is no market for the wares on hand.
As a consequence factories are closed
IN all parts u the country, millions or
workmen are discharged, prices fall, a
rush is made on deposit and savings
hundreds OF which are forced
into bankruptcy and long period OF
depression and general suffering FOL
lows. Ii IS possible that something
may occur TO produce all OF these eI-
fects, but it cannot spring from the
same causes. The trusts were specially
designed TO prevent the recurrence OF
Industrial panics, aud 1 have consider
able faith in their efficiency Trusts
and labor unions have reduced the dan
minimum"
Il confess cannot see how" declar
ed Judge Sawyer
- "Panics are a phenomenon incidental
to a purely competitive system Of in
dustry' explained Colonel Monroe
Thirty years ago we enjoyed all OF
the fruits OF competition WorkLngmen
competed with one another for Jobs IN
til wages dropped to the lowest point
at which it was possible to support
life. Manufacturers competed for the
sale Of their products aud cut prices
to point where losses were inevitable
Take the steel industry as an example.
There were then hundreds Of manufac-
turers Of steel products. Each concern
went blindly ahead producing goods on
q wild chance that a market could be
found In order TO exist each manu-
facturer cut wages to the lowest pos
ible point The individual manufac-
turer had DO way In which to deter
mine the consuming power Of the pub
lie, nor had he any method Of ascertain
ing when he and his competitors had
reached the danger point OF an over
production Of steel commodities. All
plunged ahead in the dark The amount
which can BE- produced depends wholly
on the consuming power Of the people
ana largely on that Of the wagework-
ers. II finally Sits Itself down to the
size u the wage fund. BY steadily re-
ducing the wages Of their employees
the manufacturers in those glorious
days u unrestricted competition even
tually succeeded in 80 curtaiIing con
sumption as TO force a general suspen-
aon of industry and in accomplishing
their own ruin, hence the periodical
return q Industrial panic5 with this
following years oG depression.
Any man POSSESSED OF sufficient In
teligence to lead him to 20 indoors OF
put up an umbrella when 1t rains
should have understood that the out
put Of factories was fixed by the pur
chasing capacity Of the community
A blow leveled at the wage Garner re-
cOiled On the stCckholder Of an indus
trial enterprise 4 ,uCcessful cOnspir
acy 70 deprcss the price Of grains
crippled the manufacturer fully a
much as It DID the farmer The lat
teTs wife patched up his old clothes
and the cotton and WOODEN mills wen
ntO the hands Of receivers Unless
he people can buy back that which
they produce, the wheels Of industry
STOP All Of this sounds 40 obvious A.
N seem stupid. It ia as trite "a II "a
" solemnly insist that three and foui
are seven. but despite all this tho aver
age small manufacturer Of this country
cannot get rhls idea through his thics
Ezull. Judge. II should ever obtair
Possession OF few surplus millions oi
dollars would start a night school fol
American manufacturers"
what is the matter with the Amerl
can manufacturer" exclaimed Judge
Bawyer. He "a generally supposed tc
lead the world in ability to protect b.,
Swn interests. He seems to be getti
along fairly we'll without your pro
posed night school What would yor
teach hlm?'
Il should attempt TO teach him mo-
to regard every dollar expended r.
wages as money Irreparably lost" Do
clared Colonel Monroe IL should at
tempt TO convince him that his best In
terests are conserved by comblnln:
with other manufacturers FOR the pur
pose Of maintaining the highest practl
cal rate Of wages rather than striyini
for the lowest which can be forced "
those in his employ. I should nttemp
70 explain 10 him that he cannot pros
per unless his wOrkmen prosper. a
the present time he has the opposite
idea. He Vainly lmaglnes that pros
Dertty must Hrst come to him and tina