Knowledge that Transforms

The rapid expansion of trade and industry during the years immediately,succeeding the Civil War was accomp,anied by an excessive competition which led to the elimination of large numbers of producers within various lines of activity. In consequence, sporadic,attempts were made to relieve the pressure of this competition by means of pooling agreements. As early as I872, for example, certain distillers, north of the Ohio (many of whom) had goine into, business, to, reap the speculative profits of changes in the excise) combined in an unsuccessful effort to restrict their output.' The same year, moreover, witnessed a combination am.ong six coal roads which by this time had secured a sufficient interest in, the anthracite fields to, be able to enter into, an. agreement toi regulate production and fix transportation rates.2 Shortly after the close of the war the sugar-refining industry also began to suffer from an aggravated case of competition. During the period from I875 to i88o the number of refineries

In 1834, when the, German. Zollverein went into operation, t'here. were within the limits of the p,resent German Empire between 30 and 3' millions of people. The vast majority of them were then supported by agriculture; industry and commerce, so, far as they were then developed, were carried on on a small scale. In 1905, on the other hand, there existed on the same soil 6o.6 millions of people. The excess of births over deaths was even greater than these figures would lead us, to suppose. For several decades Germany has lost great numbers of her citizens by emigration. Millions, of emigrants have found a new home in the United States. In the last fifteen years, however, this emigration has greatly diminished. The population tends to remain in Germany, and there to obtain its livelihood. In wlhat way, then, has this surplus of population obtained its support? How has it come about that nearly twice as many people now live in Germany, and a-re richer, better fed, and better housed, than in 1834? In answer to' this question, it is to be noticed that oinly a small proportion of this surplus poptulation is engaged it] agriculture. Tlhere can be no; question that agricultural effort has become more productive: there has been mrore efficient specia.liza.tion, industrial by-wo,rk has been separated from! agriculture,

The inelasticity of our forms of money is by this time a trite subject; but the conditions of the money market, which recently led to a general resort to clearing-house certificates throughout the country, has brought new interest in measures of reform. Obviously, a strong impetus has been given to the discussion of an emergency issue by the national banks, and there is an evident determination to secure currency legislation from the coming session of Congress. As everyone knows, in amount, our greenbacks (United States notes), and our silver circulation are fixed at a rigid limit, which can be neither increased nor diminished. The national bank notes are, also, inelastic, for all practical purposes, for elasticity implies the possibility of expansion in case of a real need, and of automatic contraction when the need has passed. The banks can take out new circulation only by securing and depositing United States bonds with the comptroller. Inasmuch as these notes are printed from separate plates for each bank, the sending in of bonds, the printing of the notes in Washington, their shipment to the bank, and the signing of the notes by the respective bank officials, cause more or less delay before the notes are ready to be issued. This delay is such that, unless foreseen, bank notes can seldom be obtained soon enough to meet a sudden emergency. On the other hand, their contraction is much more delayed than their expansion. The very uniformity and safety of national bank notes constitute the reason why they would not be sent in for redemption by anyone else than the issuing bank. The circulation being out in all parts of the country, any one bank can but seldomn get hold of its own notes. Just so far as they are presented to the one Redemption Agency in Washington will the bank have its own notes returned. If a bank wishes to withdraw its circulation, it can begin the process by depositing lawful money with the treasury to the amount of the notes to be withdrawn, and thereupon it can take away the bonds so far kept for their ultimate redemption. This "doomed circulation" is still out in the hands of the public, and cannot be contracted except by the slow method of waiting until the notes are sent in by other banks, or until they become worn or mutilated enough to be sent in