Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-12

tipn. In all cases the dtpteSSloIiS utu
not begin the same month or time of
year, but within the year
SPECULATIVE RAILROAD
BUILDING.
The depression beginning in 1882 in
the United States continued for four or
Ave years. and that beginning in 1893
was not overcome until 1895 or 1896. In
fact, that deupression fingered, depart
ing very slowly. but during II the foun-
dalton was laid for the present extend
ed period OF prosperity. IN 1880 there
were conditions which indicate what
may occur in the Immediate future.
speaking in II very broad way. 1t may
BIZ said that nearly all industrial de-
pressons find their occasion, ana per-
haps their cause, In q financial crisis
Looking at the dates as given above,
this conclusion becomes clearly ap-
parent. A discussion of the causes Of
the different depressions which this
country has experienced. however.
would lead us too far afeld. we must
deal with the present and the past
Immediately preceding 1t, 80 some Of the
conditions which prevailed from 1882 to
1885 become necessary for consideration.
There had been a period OF specula-
tive railroad building. The railroads
built In 1882 were estimated to have
cost with the equipment, an average OF
$50 900 per mile. and nearly 800 900 work.
men OF all classes were employed In
connection with railroad building in
that year; but In 1883 there was a
greatly reduced mileage, with a reduc-
zion In wages Of about IL or IL per cent
and reduction In the cost per mile OF
10 ga per cent, and tho number OF per-
sons employed In railroad construction
was only about 100000 men employed in
all the ramifcations of railroad building
were discharged from railroad work In
one year. II may be assured that por-
tion OF this large number found soma
other employment. and 1t is barely
possible that all found something to
do; but whatever was done 1t was at
reduced compensation and in desul-
tory way, thus greatly Gripping tho
consuming power OF large body Of
men.
or course the vast quantities OF metal
and nil material essential for the pro-
per equipment OF the new roads and ex-
tensions had stimulated industry, but
with the falling off In railroad building
there was IA proportionate falling off In
the supply OF these materials. This
railroad condition resulting from the
gripping OF construction in 1883 was
one OF the leading causes OF the contin-
uunce OF the depression which started
In 1882. IL was not the only cause. for
there were very many contributory
causes to the same end There were
disturbances In the monetary affairs
OF the country by which the consum-
Ing power of the people was crippled
and there arose then, as there always
comes when periods of depression are n
sight, an apprehension. fear oil
consequences. which while not causing
depression. intenslfies II, hastens Il
and prolongs IT.
THE PSYCHOLOGICAL ELEMENT.
This Is the psychological element Of
such periods. These conditions ar,
all prevailing. They do not apply q
the United States alone. but TO all coun
tries and when any one alleges tha
any peculiar system prevailing II
the United States. is the cause or III,
CHIEF cause of our depresslons, tn,
statement is made In ignorance OF tn,
contempornncous depressions OF othe
countries where such n system does no
prevail. 1t Is the monetary conditions
and crisis in ono country is very ap
10 produce crises in other countries. II
fact .sonte If the crises and depresaloni
experienced by the United States hav
been imported; that is. followed Xix
conditions abroad.
The quite uniform regularity Of thes
depressions is very striking. Startin
with 1878 IN this country, for instance
the next depression was in 1926, 10 year
later one In 1887 10 years later one Il
1S47. then In 1851. then In 1867 then
shorter period before the next ON,
which was In 1873, following the gener
nj financial crash OF that year. Blu
nearly 10 years elapsed before anothe
occurred, 1889 10 1866, while anothe
10 years brought us 10 "A sharp nnan
cial crisis of May, 1898. and deprea
sion In industry more or less severe
although FAR less severe than was gen