Year: 1878

Causes of Depression as Given tsy Experts


Yesterday.


NEW YORK, Aug. 27.LThe Congressional
Labor Committee met again to-day.


@: D. Wright, superintendent OF the Bureau
of Labor Statistics Of Massachusetts, said
that prior to his acceptance Of his present
position he was practiclng patent law. He is
the author Of the work giving statistics Of
persons, The only suggestion Mr.. Wright
could make for Congress to do to solve any Of
the present labor difficulties was to adjourn.
He thought II the Congressman were paid
$500 a year to stay home instead Of 5000 to
CO. the workingrnen would often be better off.


Joseph Walker, manufacturer of boots and
shoes at Worcester and leather at Chicago,
was next called. He thought the distress
now existing was not due half as much to the
real lack OF employment as to the demand to
be employed in certain class Of work at a.
particular place and certain price,, He be-
lieved that no time had ever been so favorable
for the advancement of the wcrkingman as
the present He took the broadest possible
ground on the subject Of protection, claiming
ported was a direct product OF the capital and
invention which had been given to the United
States by tariff


Alanson W. Beard, Collector of the port OF
Boston, who had previously fol. twenty-five
years been manufacturing clothier, was next
called He believed one of the causes Of the
present troubles was extravaganza on credit
in both public and private affairs. Expendi-
ture OF means that was owned was good FOR
trade; reckless expenditure Of money that
was not owned was destructive to all business
enterprises. Society depends so much ON
each other, and failure to pay in the first in
stance went through 50 many ramidcations
that it fell directly on the producer, who also
had to fail. Mr.. Beard favored the payment
Of United States bonds in gold, and believed
their payment ID greenbacks would be q vio-
lation Of the national pledge and break down
the faith OF the people in the government. In
fNf
placed solely In the hands OF banks, and taken
out Of the province of the government An an
mated discussionafol followed between Beard and
Congressman Thompson regarding redemp-
ceeded to state that at the time the bonds
were issued people accepted them as being
redeemable III gold in a medium recognized
as true by the commercial world. The act Of
the government in issuing bonds he recog-
nized to be tacit agreement between it and
the people, and such agreement was soleEnnly
confirmed by act Of Congress in 1869. An ef~
fort on the part Of the government to escape
it's responsibility by means Of q quibbliug
technicality would cause financial distress
and doubt.


Congressman Thompson said he believed
these bonds which said payable in goid''
must be redeemable in gold, but he did not
believe in exceeding the terms of the contract
not a political or moral one, or q question liza
bIe to discussion by a State Legislature


Beard said all questions In which the gov
ernment and people had opposite views neces-
sariIy became political. He believed in poll
tics as defined in Senator Charles Summers
Massachusetts letter Of acceptance, viz: Pure
morality applied to public affairs.


Congressman Thompson asked Beard If he
did not believe that greenbacks are promises
from the government to pay one dollar, or
their face value, and were legal tender in pay
ment of the bonds?


Beard said they would be only pledges OF a
government which had dshonored previous
and more solemn obligation. Beard then said
that while at dinner with Gen. Butler some
time ago. Butler, referring to the greenback
system, said it was rotten, and that few
foreign bankers could combine together and
knock the bottom out of it. Witness told
Butler on that occasion that the greenback
system had no bottom to knock out.


Thomas E. Hill, a publisher Of Chicago.
next persisted in making a statement regard
ing the stagnation of business caused by over
production and labor-saying machinery. He
was finally stopped by Congressman Hewitt,
who said the committee were tired Of hearing
such nonsense, and had no time to waste


Mr. Hewitt then announced that the COM
nnittee would adjourn till tomorrow. when G.
W. Elliott OF Boston, aad John Roach, ship
builder, Of Philadelphia, will testify.


The committee will then probably proceed
to Pittsburg and Chicago to take further tes-