Omaha daily bee., 1910-03-18
CONSERVATION OF CAPITAL
James ]. Hill Makes Plea for Econ.
Omy All Along the Line.
WASTE AND RISING WAGES
Railroad MsEnAte, In Address az 81,
Faui, says These Arc BiE Factors
In Price ProbNem-TOo
Many Bond Issues.

James ]. Hin, chairman OF the board Of
directors OF the Great Northern railway,
on Conservation Of Capitsl.' was the
feature OF the forenoon session Of the state
conservation congress today. Howard FL
uott, president of the Northern Pacific
railway, presided.
The general subject OF the session was
Agricultural Development in Minnesota"
The other speakers were Prof. E. ". Rob-
inson Of the University Of Minnesota, who
spoke on "The Farm wealth Of Mime
sofa" and Prof. A. n. Chamberlain su-
perlntendent OF the Farmers institute OF
South Dakota, whose subject was "kari.
oulture-a Science and q Competitive Bust
ness
Address of Mr.. Hill.
James J, Hill In his address urged the
conservation OF capital, condemned sv-
~travagance. gave the causes Of the increase
in prices and told how the situation ,ds-
scribed by him might be remedied.
Mr.. Hill said the national debt now tspas
to rise, concealed under the polite fiction
OF certificates Of indebtedness to oover
treasury deficits. III" he continued, "the
advocates Of large bond Issues for ali
n OF internal improvements should
carry their point. II that resource is not
definitely restricted to the emergency OF
war, we Will be in the condition Of Europe.
where the motto OF every chAncellery now
seems to be, After the deluge.'
THE phenomenal increase of public OK.
peEdituro has already produced a plentiful
crop OF public Ills. 1t lie one Of the causes
Of the increase In prices now disturbing
the people, This increase follows in a
suggestive way the initiation Of national
and local huARkfa nh.
the supplies that must be bought for prao-
tically every household has increased about
80 per cent between 1880 and 1900. During
the last year there has been q marked Mt
ing Of the price level, Foodstuffs cost from
l to 70 per cent more than ten years ago.
Currency and the Tariff.
Something is due TO enormous currency
initiation. The total per capita in the
United States in 1895 was SCI. Il, ana in 1905,
1t was $500. Although population had
grown by many millions In these thirteen
years, the amount OF money to zach lndi-
vlouai had increased by 01s.eo or more than
60 per cent. The increase In the total gold
production Of the world, which rose from
NlS'S4s.OOO in 1880 to over $42I, 100000 in 1905,
has been made the basis for one form ana
another Of credit Issues a vast
sum.
The tariff Is another contributing cauas
1t Is true that 1t ohn furnish but a partial
explanation. For to only a limited extent
can the rise in food prices be affected by
or traced to the tariff, As to commodities
that we export, the tariff is imperative. It
generally affects prices directly as we be.
oome importers. Nevertheless, the tariff
must bear its share OF responsibility for
rising prices. b.
Combinations which are actually in re-
strstnt OF trade. which have ~monopoIiEed
their field and are either controlled by a
common secret management or a secret
agreement to maintain exorbitant charres
are partly responsible. Still more of the
rise OF prices Is due to the decline Of aRrt-
cultural products as compared with the
Increase OF population" Decrease In the
number OF cattle and swine was also given
as q reason.
When due allowance has been made for
the effect Of these forces that make for
dearer living, there still remain a large
unexplained balance" said Mr.. I'M. This
must be credited to the lavish expenditure
which has now grown to be a national
trait. Waste, idlsness and rising wages,
all inter-rslated to one another, now as
cause and now as effect are, next to an
over issue Of irredeemGble paper, the three
most powerful toroeb in the world to raise
prices.
Rise of Wages.
Perhaps the greatest factor Of all the
price problem is the wage rate. Every
body knows that labor cost is the principal
item In all forms OF industry. The wage
rate has been rising steadily in this ooun-
try. Powerful forces are back Of this
movement. It has public sympathy. To re-
sist 1t is difficult and may bo dangerous.
AS cost OF production is chiefly labor
cost, the price OF the finished article must
go up If the price OF labor is raised. This
Is just as true Of the farm as Of the
factory.
"The effect Of national waste Of capital
is felt Immediately In the added weight
OF taxation. The taxes coIlecteH annually
from the railroads Of the country have
Increased more than 200 per cent since
1889. They increased by $40. 10000 and by
more h 500 per mile OF track between
1900 and 1908. Franchise taxes, Inheritance
taxes, taxes on, corporations and income
taxes are referred to with neither ab-
prevail nor ~disapprovRl.
The modern theory that you can safely
tax the wealthy is just a. obnoxious ss
the medieval theory that you can safely
Cypress or kill the poor. 1t Is obnoxious
not because wealth deserves special con.
alteration, but because capital Is the
u9inspring Of all industry and material
development; and. after you have devoted
80 much OF 1t to the unprOductive pur-
poses that tho state represents when It
transcsnds Its primary function as keeper
OF the peace and administrator OF justice,
there will be just 80 much less left to pay
out in wage and devote 20 the creation
OF other wealth.
"The saving feature Of our situation is
that It is not complex. and that the remedy
10 not obscure, The ideal OF intelligent
economy must be restored. Let the rule
be that every dollar unprofitably spent
marks a crime against posterity, just as
much as does the dissipation OF material
resources. Expenditure must be cut down
all along the line. Credit everywhere
should be conserved by a sharp scrutiny
OF new bond issues. The nation should
reserve them for the crisis OF war; no state
need ever borrow again II It is wisely and
honestly governed.
Stop grating, the offspring OF public
-extravagance and the parent Of civic de-
cay. Individual and public economy: a
just distinction between q high standard
OF comfort on one side and vulgar osten-
tation or criminal waste on the other; a