Notes on civilization, over-production, competition, protection, silver-question, Chinese, etc., giving a cause for the present dull times

Chapter I

r. THE POOR WHITE.

What are known as poor whites in many sections of the United States, or Missourians in the far West, are white people who do not care for more than a rude, coarse living. Can they obtain such a living by work¬ ing fifteen or twenty weeks in a year, they will not work more than fifteen or twenty weeks. Neither will they try to learn to be first class workmen at any thing they work at. In no way do they show any desire for more than a frugal, economical existence.

Does one suppose a state to contain none other than a people, who care but for a shanty, hog, hominy, (or similar food) coarse clothes, whisky, and tobacco, then one can see that only a demand for workmen to produce shanties, etc., will exist. No mechanics will be demanded, for the coarse products required for a cattle existence, can be made by any common laborer.

In California where whole districts are settled by this class, one can travel for days and see no work that requires fine mechanics. There is only a demand for laborers. Not only poor work, but very little of it can be found. In fact a Mexican village or a digger Indian camp, are as good places for a fine mechanic to find work in, as a district settled with Missourians or a simi¬ lar class from Europe or other parts of United States.

2. THE MORE CIVILIZED WHITE.

T hese are people who are not so coarse tasting, and who, have they the opportunity, will work so as to ob¬ tain a finer quality of living than the poor whites are satisfied with. They will want finer shelter, perhaps artistically built stone houses, are they of the highest taste ; they will want a large variety of finely cooked food, fine clothes, etc.; they will want books, music, paintings, etc. In every way they will want of the best they can get ; also will try to be excellent work¬ men instead of scrubs. There will be nothing of the scrub about them.

When a state is full of such people, a demand for fine stone and brick masons, sculptors, joiners, cabinet makers, gardeners, cooks, bakers, tailors, etc., will exist. Also printers, paper makers, book binders, and scores of other such workers will be in demand.

3. CIVILIZATION.

What I mean by civilization can now be shown. It is the difference in the desires of a people. Do one people demand a finer living than another, then they are more civilized. The tastes of a people, as I see it, have all to do with the style they live in, and deter¬ mine their civilization.

If one state is filled with people who have no taste for more than shanties, coarse food, clothes, etc., as regards necessities, with coarse whisky and tobacco for luxuries, while another state is filled with people who want fine stone buildings, etc., then there will be a difference in civilization caused by the different tastes of the two kinds of people. In one state a first class mechanic would starve, while in the other a scrub would find it hard to obtain work.

4 - TASTE AND INDUSTRIAL DEMAND.

Were all of poor white taste, man could group in small villages or communes and live as socialists dream of. Between planting and harvesting seasons, it will be easy for the socialists to make or repair hovels, coarse furniture, clothes, etc. Any one can see that the con¬ sumption of scrubs is so little, that it is easy for them to make what thev need, when usings but the commonest hand tools. As they have no artistic desire the coarse output of a scrub laborer will satisfy all their longings for quality.

Mining as we know it to-day need not be carried on. . A few score pounds of iron will last a family for a gen¬ eration. The little ore necessary to supply them with metallic products can be taken from surface croppings, as is now done amono- savages.

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All becomes different when people have a taste for fine stone constructions, etc. The demand for fine stone buildings calls for quarrymen, masons, lime burn¬ ers, sculptors, stone polishers, etc. These in their turn require tools of all kinds. Again, fine furnishings for houses calls for rare lumber, etc., besides fine carpen¬ ters, joiners, cabinet makers, etc., all of which calls for tools, etc..

On this one item of shelter, where a scrub will be satisfied with a shanty and rough furniture and so give no work to any but a laborer or scrub mechanic, one can see how great the change made by the existence of a higher taste. Scores of trades or callings can be traced to this one demand of shelter by civilized peo¬ ple.

With food it is the same. Poor whites, if left to them-

* selves, will raise the food that takes the least labor. If two varieties will do for an existence, they will not raise more than two varieties. They will live year in and year out like savages or cattle, on the same two or three varieties of food. With the civilized it is differ¬ ent, they demanding many varieties and wanting them finely prepared. This calls for scientific farming, also for fine cooks, bakers, etc., while creating a demand for fine kitchen furniture, etc..

With clothes and even such luxuries as liquor and tobacco the civilized differ from the scrub. One like a savaofe has no taste for quality, the other demands the finest.

In books, music or arts of all kinds, and in roads, bridges, docks, ships, etc., the civilized demand things that the poor white has no use for. It is not because of poor whites in United States to-day, that ships, docks, roads, etc., are needed, but because there are others than poor whites in existence.

The thousands of workmen who find work on roads, bridges, ships, docks, etc., also as printers, type founders, book binders, etc., etc., would be without work were all of the taste of poor whites.

* One can now see how -the industrial class is built up, and how it comes that in some places only a few scrub mechanics can get work, while in others many fine mechanics are employed. It all lays in the tastes of a people. Where Missourians hold out, Missouri mechan¬ ics are wanted, etc.

5. ON NON-LABOR EXPENDITURE.

Many people consider that if only a man spends his money and so helps to keep money in circulation, that it is all right, That this idea is wrong and that little good as regards labor can come from some kinds of spending, I will try to explain. The expenditure of money on harlots, pimps, gamblers, etc., does not create much demand for labor, but creates a demand for har¬ lots, etc. Where many create such a demand, there may be found many harlots, pimps, gamblers, etc., while comparatively few workers will be seen.

Many gold miners who came to California in early days lived on pork and beans, wore cheap clothes and spent the bulk of their earnings on rotten women, gam¬ blers, etc. The demand for labor by such men amounted to little, because they consumed little that labor created.

To see the full effect of this kind of expenditure, let one suppose that a state be mainly filled with said miners, and further, that each receives $1200 income per year, with food, etc., at present prices.

First, the scrubs would build cabins or hovels. Next, lay in a supply of coarse food, clothes, etc. In all about 150 dollars, expended on food and other ne¬ cessities, would supply a scrub for a year.

The balance of a scrub’s $1200, or $1050 would go for harlots, betting on races or other gambling, gfettinpf drunk and having a good time in scrub fashion. The scrubs will consume some whisky and tobacco, which of course means some labor product consumed.

Of the 150 dollars expended for necessities, not over sixty need go for labor, the balance going to traders, etc. At $2.00 per day, this means thirty days’ labor. To this thirty days’ labor must be added the labor consumed in whisky and tobacco, or say twenty days more. One now has a total of fifty days’ labor product consumed by a scrub when spending $1200 of income.

A virtuous girl would only have a show to earn about ten dollars on such a scrub’s consumption. This ten dollars’ worth of work may be had in making the clothes, blankets, etc., the scrub wears out. A rotten girl, how¬ ever, may get as high as $500 of the $ 1200. So one can see that for every ten such a piece of animated carrion gives to a virtuous girl, he may give $500 to one of his own rotten spirit.

Being rotten souled themselves, this class creates a demand mainly for rotten girls, pimps, gamblers, etc. Where they exist a better grade of people have little show to live.

One can now see why, if a man saves on his living, in order to have gambling, spreeing or harlot money, that he gives little work to honest labor. Does a State have many of this low class in it, then it must be a poor place for work.

In San Francisco there are many people of this spirit. They often enjoy good incomes, while they do not give others much work. They spend the most of their wages on rotten girls, gamblers, etc.. This is one rea¬ son why rotten girls do so well in San Francisco and virtuous girls must compete with Chinese. It is all because of the spirit of many of the San Francisco peo¬ ple. Fill California with men of rotten taste and it will show in the demand for labor. Such men think it smart to get drunk, slobber over rotten females, gam¬ blers, etc., and so shape their demand. They will save on their living in order to have money to spend on pleasures.

6 . CIVILIZATION AND SAVING MONEY.

If everybody lived like a poor white or serf in order to save money, then there would be no demand for workmen in order to make fine products. Whether men live like cattle from taste, or from a desire to have harlot money, or for economy’s sake, it is all the same as regards consumption. One thing is certain, if no one wants more than a hovel, breech clout and potatoes, no one will get work at any thing but hovel, breech clout,, and potato production.

7. CALIFORNIA AND IMMIGRATION.

There are 40,000 workers in every 100,000 people* besides females enough for wife and home duty. These 40,000 must get work, and if only breech clouts and potatoes were demanded, they all would have to get work at such production. Now if 2,000 could do all the work, it stands to reason, each of the 40,000, if the work were equally distributed among them, would not get over three weeks’ work. The rest of the time they could loaf. Now while the poor white consumption i s not down to hovel, breech clout, etc., still it is so low that no more than 15,000 workers are needed to sup¬ ply the demand of 100,000 poor whites. The result one can see by going into counties filled with poor whites, in the large amount of loafing done.

An evil effect of too low consumption can be seen by supposing that during 1886, California will receive 100,_ 000 immigrants, and that these are all Missourians or of similar kind from other white countries. As this 100,- 000 comes pouring into the state, they will create a demand for what 15,000 workers, traders, etc., can produce and sell, while they will bring with them 4°r

000 workers hungry for a job.

One can see if 40,000 workers come into the State, do they create work for but 15,000 workers, that it is not going to benefit the State. by the time the State has a million more population, if of this kind, 250,000 idle workers will be added to those now idle in the state.

OVER-PRODUCTION.

CHAPTER M.

8. SAVING MONEY AND OVER-PRODUC¬ TION.

Would saving money only cause a people to exist like poor whites it would not be so bad, for they could divide the work that is, among them, each getting enough work to enable each to buy the scrub living that suits him. But this is not so, for saving can and does cause most of the over-production.

The over-production appears as soon as more money is saved than is spent on construction or capital build¬ ing. For example, suppose during 1886 the people of San Francisco saved twenty millions, which all went into savings banks, while but ten millions were taken from the banks and spent in building homes, factories, etc., or in repairing and improving constructions of all kinds. The result would be that ten millions of over¬ production would result. Had not a dollar been spent for constructions, then twenty millions over-production would have resulted. The over-production can be San

Francisco factory product or merchandise gained through trade.

From this it will be seen, that saving money must be spent for constructions as fast as it is saved, if no over¬ production is wanted. Investing it in stocks, improved property, etc., will not do. It must be so invested that it will cause consumption of labor products.

9. UNLOADING OVERPRODUCTION.

When overproduction exists it must be gotten rid of by unloading on outsiders, and taking coin or property for it. Will San Francisco have ten millions overpro¬ duction on hand by 1887, can s ^ e unload this on the outside it will not hurt San Francisco production. U San Francisco can not unload, then it will lay on the hands of San P'rancisco people and depress trade.

One can see, that San Francisco may unload within United States and therefore what is overproduction to San Francisco is not overproduction to United States. What is overproduction to United States is what United States has over after utilizing a ll she needs for construction. Much overproduction of the towns can be used up in building railroads, etc., outside the towns and within United States.

10. ECONOMIC NATIONS OF THE WORLD;

The economic nations of the world, I call those of Western Europe and also the Uuited States. The rest of the w r orld I do not consider economic. By the aid of machinery these economic nations can easily compete with the rest of the world, and can be, for explanation purposes grouped together. By so drawing a line be¬ tween the economic ‘nations, and the rest of the world,

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and supposing them to practice saving money above that needed for home purposes, one can see just what show they have for unloading overproduction on the rest of the world.

On the capacity therefore of the balance of the world for taking overproduction, depends the prosperity of the economic nations. If the latter can not unload out¬ side, then of course they will have overproduction on their hands. This is exactly what causes the hard times of to-day.

The last boom of 1879-81, was caused by the eco¬ nomic people spending their savings on railroad, fac¬ tory, ship, and other construction. Not only the sav¬ ings of these years but the accumulated savings of sev¬ eral previous years were spent in above mentioned con¬ struction. This had the effect of using up saving money and merchandise, as fast as saved or produced.

The moment this constructing slackened of course savings began to remain uninvested, while overproduc¬ tion appeared. The outlet for merchandise falling off in West Europe and United States, of course if the outsiders could not take the overproduction resulting from saving, depression must result from its laying on the hands of economic peoples.

11. ON REMEDY.

The only remedy I see that will do any good is for the people to cut down saving money. To do this the people must spend some of the money they now save in buying a finer quality of merchandise. I n other words the economic people must put on more style.

Spending money on harlots or serfs pleasures will not do. The money must be spent in buying a finer living.

Of course if more railroads, etc. , are wanted more can be built, but right here comes in the question of style, for if nobody lives any better, no more work ex¬ cept that caused by increase of population will be de¬ manded. The railroads may gain a little by this increase but as 40,000 new workers come to the front with every increase of 100,000 population, the mass of the people will not gain.

Increase of population I look on as a nuisance, if it brings 40,000 workers to every 15,000 new jobs. Then again improvements in machinery or effectiveness of railroads, will neutralize in many ways increase of pop¬ ulation.

If money is not wanted for building new railroads or other capital property and the people do not see any sense in living in stone buildings, etc., then I can see no way to avoid the hard times of to-day.

Working for others will not go, for others have more than they want. Outside the economic nations no one wants as much as we now can give them, while inside the economic nations there are few who want more. We can only work for ourselves or other people and the latter avenue is closed, or we would be able to ^et rid of'overproduction. So only by consuming more ourselves can we get rid of overproduction. This lat¬ ter can only be done by those who save buying a finer quality of shelter, food, etc..

Some will say there are many who want more in United. States then they now get, but capital robs them of the show. This is not true as regards the mass. Many want more but it is more harlot, whisky, betting, saving money, etc. Such wants do not make the wants I refer to, or wanting a finer grade of products.

12. GOLD AND SILVER MINING AND OVERPRODUCTION.

Gold and silver mining has in the past given, and will in the future give, an outlet for overproduction. This is due to the fact that gold and silver are money metals. For example:

A country like Mexico, do her mines produce thir¬ ty millions of gold and silver yearly, can take this amount of overproduction from the economic peoples. With¬ out gold and silver mines Mexico could but exchange products. This would not enable Europe to unload overproduction. What Mexico can do all the other money mining people can do. So the economic world can unload overproduction to the extent of the mining output of bullion the world over.

This outlet for overproduction has existed through centuries. For our present purpose however we can say it existed for us moderns since the discovery of America. Between the years 500 and 1500, the mining outlet must have had little influence in Europe, but since 1500 the pouring into Europe of a stream of money metal has been large and continuous; enabling the towns to unload over production andno doubt greatly stimulat¬ ing economy or the saving of money.

Common sense will tell one, that if the people of Europe and United States never have more overpro¬ duction then the bullion outlet can consume, that sav¬ ing money can go on without ajar. In this way money metal can enter circulation. Should the mining output fall off then any saving caused by mining must also fall off.

13. AN ASIAN OUTLET FOR OVERPRO¬

DUCTION.

Before a sea route to Asia was discovered, let one suppose that Asia had the best of trade with Europe, that is, took coin from Europe. Now if the finding of a sea way was followed by the Europeans taking coin from Asia, one can see that another outlet for overpro¬ duction was found. It is well known Asia had been accumulating - coin for centuries, which would have given the European a large accumulation to draw from^

This taking coin from Asia may have continued down to the year 1850, when the discovery of gold in Cal¬ ifornia and later in Australia, may have had the effect of increasing the coin supply of Asia, or at least put a stop to taking more from Asia.

When the inflation following on gold discoveries had subsided, or been neutralized by machinery and other such improvements, then Europe and United States may have again begun to reduce the coin in Asia and have been doing so ever since.

14. What I mean by Asia increasing her coin sup¬ ply after 1850, is that if prices rise in economic Europe and United States, that it will give more room for money circulating outside. For example, suppose prices went up in Europe twenty percent, during 1886. This would allow Mexico to circulate twenty per cent, more coin than she circulates to-day. So it would be all over the world. Africa, Asia, America, etc., could not help but gain coin and circulate it.

Where will the outsiders get the coin, some will ask.

By trade is one way; for raise the price ol sugar, coftee, etc., in Europe, and the producers of sugar, coffee, etc, will £et more coin. The same with Asian goods, are, the prices raised in Europe. There are other ways coin can cret into circulation outside the economic

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world, and once outside the prices will determine whether it will come back or not.

Do 3,000 millions of coin now circulated out¬ side economic Europe and the United States, then by raising prices 20 per cent, in Europe and United States room for 600 millions more outside will result. Instead of 3,000 millions 3,600 millions would circulate outside. The additional 600 millions would come from the hoards of money in Europe and United States.

A fall in prices of 20 per cent, will enable Europe and United States to unload 600 millions overproduc¬ tion on the rest of the world, reducing the circulation from 3,000 millions to 2,400 millions.

15. SURPLUS MONEY IN EUROPE AND

UNITED STATES.

Where much of the surplus money in Europe and United States can come from one can see. It was all in circulation some time previous to 1880, but was taken from circulation by fall in prices.

The European capitalists can get more coin then to¬ day in their hands by dropping prices. As fast as prices drop overproduction can be unloaded on the out¬ side, and the coin taken to Europe and United States. For example, suppose Mexico to-day circulates fifty millions of coin, and will mine thirty millions more dur¬ ing 1886, a drop of 20 per cent, in prices will enable Europe to unload forty millions of overproduction on

Mexico during 1886, thus taking the mining output and ten millions of the present circulating medium.

As can be done with Mexico, can be done with the rest of the world. The capitalists of Europe can, therefore, find coin accumulating on their hands, the. lower prices fall. So will it be in the United States.

16.—PAPER MONEY AND OVER¬ PRODUCTION.

Does U. S. say, issue 500 millions of greenbacks,, spending in addition to the regular expenditure, the result would be as if 500 millions of gold were mined and circulated. The same result would follow the issuing of National Bank paper—or any paper money.

Were 100,000 of gold taken from mines, minted into coin, and then used as security for 500,000 of bank pa¬ per, the floating of 500,000 of paper would act as if 500,000 of new gold were circulated. It would swallow up 500,000 of overproduction.

When a body of capitalists take U. S. bonds or gold, and issue paper on them, they can buy with the paper labor or labor product. Do they float 500,000 of pa¬ per they can buy land for 100,000 say, and erect a 400,000 dollar building on the land, or they can build 500,000 of railroad. In this way they gain what could be overproduction were it not utililized.

Should the South American people adopt pa¬ per money, the governments could buy to the extent of the paper. Then, as the paper will allow Europe or U. S. to take away what coin circulates, another batch of overproduction could be got rid of. The United States could do the same. The government could issue 500 millions of paper and buy with it, say labor and material for warships, fortifications or army. This amount of paper would be apt to displace 500 millions of coin, which could be given to Europe for overproduction. The result could be that 1,000 millions of overproduction may be gotten rid of.

It will be seen Europe could gather all the coin in the world to itself did ousiders use paper ; also, while doing so, Europe could unload overproduction. The European economists could study the question from the European standpoint, and so find good proofs that if people save they can make money, \\ hile all this is going on, every European editor can be advising the people to save, economize, etc. But when Europe has gathered all the coin, one can see that the trouble will be to get the people to stop saving.

This is a trouble to-day. So many have advised saving that millions of ignorant people believe in it, and from now on it will be’hard to get them to stop saving.

17. BONDS, MORTGAGES, STOCKS, ETC.

Are also means by which overproduction can be kept from showing itself. Of course the term overproduc¬ tion is not exactly correct, but the reader can see that I mean what would be overproduction were it not for its consumption by means of bonds, etc.. For exam¬ ple, suppose United States issued 100 millions of bonds and used the money received for building forti¬ fications within United States. The result would be that 100 millions of product would disappear. Had the government not done this then there could have been 100 millions of coin lying idle, and 100 millions of overproduction oppressing trade.

The same rule holds good for preceding article, and in fact all I write on in this line. If an outlet exist there will be no overproduction and when I say outlets for overproduction, I mean what would be overpro¬ duction were there no outlets.

When the United States issued 2,000 millions of bonds during the civil war, it gave an investment for a large amount of savings. The government used up the overproduction on the war, the saver got the bonds. Here we see that as much overproduction found an outlet by reason of bonds, as found an outlet by reason of the gold output of California since 1849.

Railroad or corporation bonds of any kind act the same as government bonds. A railroad company say, spend twenty millions in gold on building a railroad, and issue fifty millions of bonds, stocks, etc., which they sell say for forty millions in gold. Here are twenty millions of honest dollars made. The forty millions of gold can be used to make another turn netting the builders say seventy-five millions clear gold. The reader can trace sixty millions of labor or material, put into railroad building in above supposition. Do the builders make another turn and spend seventy-five millions more in railroad building, one can see 135 millions of what could be overproduction consumed. In this way bonds and stocks allow the use of property built, for the pur¬ pose of getting more coin.

Mortgages act the same. A man can spend 100,000 on a building, mortgage it for another 100,000 (is the lot valuable) and build again. The mortgage there¬ fore does for the private builder, what the bond does for corporations and governments.

This and last article show how the results of saving are disposed of within a nation. Outside the same can take place as I will explain.

18. FOREIGN INVESTMENTS AND OVER¬ PRODUCTION.

Should European capitalists invest 500 millions in China between 1886—90, than European traders can unload 500 millions of overproduction on China and get the money back. Perhaps no more than fifty mil¬ lions of coin will be needed, for as fast as it is given to Chinese it comes back again for merchandise, and can be used again for investment.

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The same was the result of the investments made in Mexico about 1880. The United States people put their coin into Mexican roads, and as fast as it was spent in Mexico, it began to go out. Europe dumped in overproduction and the coin went to Europe.

West Europe in the past invested millions in such countries as Peru, Turkey, Egypt, etc. In fact the whole world outside West Europe was loaned money, so long as it had the security. In this way Peru got monev so long as her nitrate or guano beds and other property were fit to advance money on. After Peru had no more security to offer, no more money was loaned her.

All the money so invested went into circulation and returned to the investors through trade channels. Did a South American state discover good mines, etc., the European capitalists could buy the property, build rail¬ roads to it, and develop it in every way. As fast as they spent the money in South America European traders could unload overproduction and bring it back to Europe. When all was over Europeans would own the property, and the coin that bought and devel¬ oped it. All the South American people get will be good times while the money is being spent.