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Capital And Labor

Capital And Labor image
Parent Issue
Day
30
Month
August
Year
1878
Copyright
Public Domain
OCR Text

Prof. Sumner, Professor of Political ind Social Süieaco in Yale College, re;ently gave his views regarding the labor iepression, before the Hewitt committee, sittiug in New York. He direeted ittention to the fact tb at within tbc laat Eew yenjs the raeans of transportation luid commncicatiou became greater, and by these means osrer-production was tbe eonsequence, and bad made a revolution over the whole world. Ho said tliat wheu tbe Sueü ennal was flrst opened goods came much quicker, and cansed a glut in tbe English market - new goods accumulating on each of tbe old; but this glut had uow been overeóme. Within tbe last quarter of a century there had been f. great improvement in machinery of all kinds, and, taking the accwnulated effect of these machines, they must pro duce a temporary set-back. Tbere was another factor in eausing this depreosion in labor eircles. This elïect would reach everybody, for tbe effect tliat mtiobinery would have would be to cheapen luxuries, and bring down things to the poor classes wbieb a century ago tbey never thought of. Machinery had been a great good to tbe masses, though in cases of individuals and classes it had worked tbem evil. If the United States had had a free tariff in 1872, the country might have been able to compete witb England when tbe coal and iron trade was being carried on to a great extent. The laborer in tbe Uuited Stiltes, at tlie present time, is not having as good a time or as good subsistence as tho laborer in England. In this country there were twelve people to tbe mile, and in Belgium there were 460 persons to the mile, and tbe latter lived fairly. He did not think a revolution would cause a chango in this rospect. Tbe people of the whole country since 1873 had been trying to solidify and settle np their accounts. During tho last five years many persons had accuinnlated capital by reduMng expenditures. He thought legislation could do nothing for this stngnation in labor. Every person must work piong the best way be oould. We bad beard a great deal lately about over-production. He classed it as disproporfiouato pioduotion. When there was this disproportionate production, vritness thought it was due to the protoctive system. The tariff was greatly to blame for onr prodnetion of cvery year beiüg greatly in excess of the demaud. The tarift congested the population in some distriots to where it would not otherwise have been attracted. The only way to remedy this was the redis■ tribution of the people among the in' dustries of the country. This redistribution was going on under its natural laws. He was not in favor of the Government colonizing lande, but found no fault with private orgauizations doing 30 from a spirit of benevolence. The only remedy for the depression of labor ■was the application of sound doctrines to the case in point. The only way in which the Government could aesist the non-capitalisi in Ihe aeeumulation of capital was to give the greatest amount of privileges in using lus liberties and eneigies lor production, and by reniüving tho restrictions on trade aad leave him free to profit by the friiits of his industry. William E. Dodge, non merchaut, appeared in his official capacity as President of the National Temperance Society, and clairaed that the uso of intoxicating liquors was one of the causes of the present condition of the laboring classes. Tiria distress in labor might be relieved to eome extent by the modification of the tarilï and action of the Government in the matter of resnmption of specie payment. He never knew capital to be so abundaut as eow, but there was great diöieulty in using it in buainess. Another factor in alleviating this distress would be legislation in the matter of the liquor traffic. Horace "White, formcrly of tho Chicago Tribune, was called by the eouamittee, and stated that he had studied the financial question, ind had paid a great deal of attention to it when he was a journalist, and since he retired from journalism. He thought the present commercial crisis is only one of a series that have occurred among nations for the past 200 yenrs, and they Have been preceded by rampant speculations. In 1873 he thought specuiations in railroads had a great deal to do in c.insing the depression which existed. There was enormous spaculation in lands all over the country. The prices of real estáte multiplied beyond anything in tlie reeollection of the witness. The obligations incurred by the building of these railroads and the purchase of real estáte caused many parties to become insolvent. The condition of the currenoy had not increased this state of things, the witne83 thought. He found that these periode of crisis carne upou natione, no matter whether the currenoy was gold or paper. The speculative era which existed from 1869 to 1873, the witness thought, had something to do ■vñth the present condition of affaire. The accnmulation of capital acting on the sanguine temperaments of a certain race of people would pioiuco a speculative era. Over-production by machinery had contributed to decreaeo business, by producing more thau there was a deraand for, and prices feil nocordingly. He did not think that the intrednetion of machinery had produced this speoulative era and the collapse which followed it. Corn is fourteen feet high in Kansas.

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Subjects
Old News
Michigan Argus