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BAD TIMES.
1N 1842 when Australia passed through
a severe pecuniary crisis, a friend of a
bill discounter was expressing regret at
the large loss he would suffer, by the
dishonor of so many acceptances. But
the capitalist himself was not at all
downhearted. If, said he, I get but a
dividend of ten shillings in the pound I
shall be as rich as ever I was. When
requested to explain, he simply re
marked that landed and other property
would be so depreciated that fifty
thousand pounds would purchase more
tlhan double that sum would have done
two years previously. Commercial as
well as political affairs are seldom at
rest. -There is an oscillation from high
prices to low prices, and from low prices
to high. The law of supply and de
oand is inexorable. The Sydney Her
ald,in an article elsewhere published, re
fers to the great disturbing cause which
has been in operation for the last ten
years. It is very justly observed that
although the value of labor and every
thing else is falling that is no reason
why we should consider ourselvesruinedl
or il fitct worse offtitan before. Many
will recollect that laborers' wages have
fallen from a dollar to half-a-crown and
two alillings a day and risen again to
half a sovereign. With the cost of labor
other things fluctuated. When wages
were half-a-crown ia lay we must not
suppose tile laborer was starved. His
two shillings and six-penco would buy
a bushel of wheat, that being the mnar
ket rate then. In human affairs there
is tile law of compensation constantly
at work to correct inequalities or per
haps it would be better to say they cor
rect themselves. For instance wheat
rises to fifteen or twenty shillings a
bushel. This stimulates its produc
tion: other cereals and root crops are
neglected. New land is brought under
tillage, competition raises wages, and
agriculture is carried on at an enhanced
cost. But when the supply is greater
than the demand the price of the pro
duct falls; it continues to decline for
two or three years, by which time the
acreage of wheat has been very much
diminished. Let any industrious pur
suit be more productive than others
and men and money immediately flow
towards it until competition brings its
profits sonmewhat below an average.
In this island we are in a transition
state. Credit has been too freely given
and too grossly abused. The present
stagnation is a necessary consequence of
overtrading, indiscriminate credit, un
profitable speculation, and extravagant
expenditure. The man whois "cleared
out" cannot keep his carriage and
country house: the prudent man who
pays his way honorably economises his
resources and no longer indulges in
what is not absolutely necessary. And
thus it is that trade is dull. Those
who would purchase and consume do
not get credit, and those who could pay
as well as buy are not inclined to spend
more of their money than what is
absolutely necessary. But it will be
seen at a glance that this is just the
thing which will ensure future pros
perity and activity in trade.
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