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lican platform of 1856, as “the highwayman's heard, which condemnation, however, upon applea that might makes right”; and was not open-pearance within certain prescribed periods, may be ly defended by the democratic platform of 1856 or set aside on terms. — Outlawry in the English of 1860, except that the latter declared in favor of sense was there confined to high and capital the acquisition of Cuba by honorable and just crimes, and was frequently applied by the secret means, at the earliest practicable moment. — See courts, held by certain tribunals in some parts 3 Spencer's United States, 510; 1 Greeley's Ameri of Germany, under imperial sanction (Vehm aan Conflict, 273; 2 Wilson's Rise and Fall of the Gerichte) in the middle ages. Those convicted, Slate Power, 611; Cairnes' Slave Power, 145; Clus when within the power of the tribunal, were at key's Political Text Book of 1860, 477 (correspond once executed by the subordinate officials, and ence and manifesto in full).

those who escaped were outlawed, and liable to be ALEXANDER JOHNSTON. executed wherever found by officers or members

of the brotherhood. In Rome and Greece everyOUTLAWRY. The declaring one by superior body could kill an outlaw, and it is a somewhat authority outside of the protection of all law, disputed point whether at earlier times this was was a proceeding not unknown to the Greeks and not also allowable at common law before it was Romans, but was inflicted by them when offenses expressly prohibited by statute. In the holy Gerhad been committed against the national religion, man empire outlawry, called Reichs- Acht (Bann), and was more in the nature of ecclesiastical excom- played a great part, but it was more of a political munications and interdicts such as are found in than strictly legal process. It was adopted in some Christian countries. — At common law pro cases of felony, committed by the great vassals cess of outlawry originally lay only in cases of against the emperor, their liege lord; also in cases treason, but was at later periods extended to of great crimes and misdemeanors not strictly minor offenses and even to civil actions. The breaches of fealty. The imperial great bann had consequences, however, of a judgment in out to proceed from the diet; the lower bann could be lawry, and the legal steps to obtain it, were very pronounced by local courts, and had but a local different in the last mentioned cases. — In Bacon's application. Upon complaint, sustained by the Abridgment outlawry is defined as a shment estates of the empire assembled in diet, the accused inflicted on a person for contempt and contumacy, was summoned, usually three times, and upon in refusing to be amenable to and abide by the default conviction followed and declaration of justice of that court which has lawful authority outlawry. With the great vassals the decrees to call him before it. And as this is a crime of could only be enforced by a real war. The outthe highest nature, being an act of rebellion lawry of Henry the Lion (the head of the Guelph against the state or community of which he is a faction), duke of Saxony and Bavaria, was permember, so does it subject the party to divers haps the most noted instance of this process. forfeitures and disabilities, for hereby he loses Having failed to heed the summons to answer the liberum legem, is out of the king's protection. It | impeachment at three different sessions of the is further said in the same place, that in outlawry diet, outlawry (the Ober- or Aber-Acht) was proin treason and felony the law interprets the party's nounced against him at the diet held at Wurzburg absence as a sufficient evidence of his guilt, and, (1180) by the emperor Frederick I. (Barbarossa, without requiring further proof, accounts him chief of the Ghibelins). It was a political act guilty of the fact, on which ensues corruption of more than a legal one, as it also declared a forblood and forfeiture of his whole estate, real and feiture of his estates held as benefices, and not in personal, which he holds in his own right. — One his own right, which was not usual either at comof the most memorable proceedings in outlawry mon law or at the German law. Henry took up was directed against the well-known agitator and arms, but being unsuccessful, fled to his fathermember of parliament, Wilkes Booth, in conse in-law, the king of England. Later, amnestied, quence of his withdrawing to France, while an he was reinstated into Brunswick and Luneburg, information for libel was pending against him his allodial possessions. — The outlawry of the (1770). On technical grounds (Lord Mansfield elector John Frederick of Saxony, and of Philip, presiding) the proceeding was quashed. The pro- landgrave of Hesse, the Protestant leaders in the cess of outlawry was so beset with technical diffi- reformation, was wholly irregular, being declared culties that it could hardly ever be successfully by a mere edict of the emperor Charles V., maintained. In the United States it never was without sanction of the diet (Reichstag) 1547. generally recognized either in criminal or civil Equally irregular had been the outlawry of Martin cases. This process of outlawry, as found in the Luther, by a mere minority of the diet of Worms common law, as applicable to minor offenses and in 1521, when the session, by the departure of even to civil cases, if it ever prevailed on the most of the members, had been virtually closed. continent of Europe, was soon superseded by pro- Some of the most powerful princes of the emcess and judgment in contumaciam, taken from pire at once protested against it, and the emperor the Roman and canon law even in criminal cases. never took steps to execute it. All formalities Parties sued or indicted may, under that process, had been neglected. The only resolution that be summoned by publication and be condemned was legally passed against Luther was one bindin their absence, but not without evidence being | ing the estates of the empire not to obstruct the

papal bulls against Luther, which had only a ed; but I ask in turn, by what means does this clerical effect by excommunicating him. Other money come into the hands of those who desire imperial outlawries sanctioned by the diet were to buy? must it not be obtained by the sale of those against the elector palatine Frederick, king another product? The man who wishes to buy of Bohemia, and his allies, in 1619, and against must first sell, and he can only sell what he prothe electoral princes of Bavaria and Cologne in duces, or what has been produced for him. If the war of the Spanish succession, on account of the owner of land does not sell with his own their alliance with France in 1702. An attempt hands the portion of the harvest which comes to to outlaw Frederick the Great of Prussia, at the him by reason of his proprietorship, his lessee commencement of the seven years war (1758) sells it for him. If the capitalist, who has made failed in its initial steps. Purely political acts, advances to a manufacturer, in order to get his without any legal proceedings, were the outlawry interest, does not himself sell a part of the manuof the Baron de Stein, ex-minister of Prussia, by factured goods, the manufacturer sells it for him. Napoleon I., in 1809, and that of Napoleon him. It is always by means of products that we purself by the princes assembled at the Vienna con chase the products of others. Beneficiaries, pengress in 1815, as also that of Gen. B. F. Butler sioners of the state themselves, who produce by the confederate states.

nothing, are able to buy goods only because GUSTAVE KOERNER. things have been produced, by which they have

profited. — What must we conclude from this? OUTLET. An outlet, properly speaking, is an If it be with products that products are purchased, opening made for the sale of certain products. each product will find more purchasers in proWe say that a merchant seeks an outlet for his portion as all other products shall have increased wares, when he is in quest of places where he in quantity. How is it that in France eight or can sell them; that he finds an outlet abroad, ten times more things are bought to-day, than when his products are ordinarily sold abroad. To under the miserable reign of Charles VI.? It open outlets to a country is to give it the oppor- must not be imagined that it is because there is tunity of entering upon friendly relations with more money in that country now; for if the mines other countries, which will afford it new avenues of the new world had not increased the amount of sale. It would seem that this subject does not of specie in circulation, gold and silver would allow of any really economic development. But have preserved their old value; that value would J. B. Say has almost given us a theory of it. We even have increased; silver would be worth perhere reproduce his thoughts on the matter. They haps what gold is worth now; and a smaller have been approved and appreciated by all econo amount of silver would render the same service mists. — “As the division of labor makes it im- that a very considerable quantity renders us, just possible for producers to consume more than a as a gold piece of twenty francs renders us as. small part of their products, they are compelled much service as four five-franc pieces. What is to seek consumers who may need these surplus it, then, that enables the French to purchase ten products. They are compelled to find what is times as many things, since it is not the greater called, in the language of commerce, outlets, or quantity of money which they possess? The markets, that is, means of effecting the exchange reason is, that they produce ten times as much. of the products which they have created against All these things are bought, the ones by the those which they need. It is important for them others. More wheat is sold in France, because to know how these outlets are opened to them. cloth and a great number of other things are Every product embodies a utility, the faculty of manufactured there in a much greater quantity. ministering to the satisfaction of a want. A prod. Products unknown to our ancestors are bought uct is a product only by reason of the value by other products of which they had no idea. which has been given to it; and this value can be The man who produces watches (which were given to it only by giving it utility. If a product unknown in the time of Charles VI.), purchases cost nothing, the demand for it would be infinite; with his watches, potatoes (which were also then for no one would neglect an opportunity to pro- unknown). — So true is it, that it is with products cure for himself what satisfies or serves to sat that products are purchased, that a bad harvest isfy his wants, when he could have it for the injures all sales. Indeed, bad weather, which wishing it. If this were the case with all products, destroys the wheat and the vines of the year, does and one could have them all for nothing, human not, at the same time, destroy coin. Yet the sale beings would come into existence to consume of cloths instantly suffers from it. The products them; for human beings are born wherever they of the mason, the carpenter, the roofer, joiner, can obtain the things necessary to their subsistence. etc., are less in demand. The same is true of the The outlets opened to them would become im- harvests made by the arts and by commerce. mense in number. These outlets are limited only When one branch of industry suffers, others by the necessity under which consumers are to suffer too. An industry which is prosperous, on pay for what they wish to acquire. It is never the other hand, makes others prosper also. the will to acquire, but the means to acquire, that The first deduction which may be drawn from is wanting. — Yet in what does this means con this important truth is, that in every state the sist? In money, we shall be hastily told. Grant more numerous the producers are, and the more

production is increased, the more easy, varied this trade is of little importance, for these savages and vast do outlets become. In the places which need a vast extent of country to find only a produce much, there is created the substance with limited number of wild animals, and these wild which alone purchases are made: I mean value. animals are diminishing every day. Hence, the - Money fills only a transient office in this double United States much prefer to have these Indians exchange. After each one has sold what he has civilized, become cultivators of the soil, manuproduced, and bought what he wishes to con facturers, in fine, more capable producers; which sume, it is found that products have always been unfortunately is very difficult of accomplishment, paid for in products. — We thus see that each has because it is very hard for men reared in habits an interest in the prosperity of all, and that the of vagabondage and idleness to apply themselves prosperity of one kind of industry is favorable to work. Yet there are examples of Indians who to the prosperity of all others. In fact, whatever have become industrious. I read in the descripmay be the industry to which man devotes him-tion of the United States, by Mr. Warden, that self, whatever the talent which he exercises, he the tribes then living on the banks of the Missiswill find it easier to employ it and to reap a sippi, and who afforded no market to the citizens greater profit from it in proportion as he is sur of the United States, were enabled to purchase of rounded by people who are themselves gaining. them in 1810 more than 80,000 francs' worth of A man of talent, sadly vegetating in a country merchandise; and probably they afterward bought in a state of decline, would find a thousand from them a much larger amount. Whence came avenues of employment for his faculties in a this change? From the fact that these Indians productive country, where his talents might be began to cultivate the bean and Indian corn, and used and paid for. A merchant established in an to work the lead mines which were within tbeir industrious city, sells much larger amounts than reservation. — The English rightly expect that one who lives in a country in which indifference the new republics of America, after their emanciand idleness rule. What would an active manu pation shall have favored their development, will facturer or a capable merchant do in one of the afford them more numerous and richer consumers, poorly peopled and poorly civilized cities of cer and already they are reaping the harvest of a tain portions of Spain or Poland? Although he policy more in consonance with the intelligence would encounter no competitor there, he would of our age; but this is nothing compared with sell little, because little is produced there; whereas the advantages which they will reap from them in Paris, Amsterdam or London, despite the com- in the future. Narrow minds imagine some hidpetition of a hundred merchants like himself, he den motives in this enlightened policy. But might do an immense business. The reason is what greater object can men propose to themsimple: he is surrounded by people who produce selves than to render their country rich and much in a multitude of ways, and who make powerful? - A people who are prosperous should purchases with what they have produced; that is therefore be regarded rather as a useful friend to say, with the money resulting from the sale of than as a dangerous competitor. A nation must what they have produced, or with what their doubtless know how to guard itself against the land or their capital has produced for them. — foolish ambition or the anger of a neighbor, who Such is the source of the profits which the people understands its own interests so badly as to quarof cities make from the people of the country and rel with it; but after it has put itself in the way which the latter make from the former. Both to fear no unjust aggression, it is not best to have more to buy in proportion as they produce weaken any other nation. We have seen mermore. A city surrounded by a productive coun. chants of London and Marseilles dread the entry finds there numerous and rich buyers; and in franchisement of the Greeks and the competition the neighborhood of a manufacturing city the of their commerce. These men had very false products of the country sell much better. It is and very narrow ideas. What commerce could by & vain distinction that nations are classed as the independent Greeks carry on which would not agricultural, manufacturing and commercial na be favorable to French industry? Can they carry tions. If a nation is successful in agriculture, it products to France without buying her products is a reason why its commerce and its manufac- and carrying away an equivalent value? And if tures should prosper. If its manufactures and its it is money that they wish, how can France acquire commerce become flourishing, its agriculture will it otherwise than by the products of her indusbe better in consequence. A nation is in the try? A prosperous people is in every way favorsame position as regards neighboring nations that able to the prosperity of the other. Could the a province is in relation to the country; it is inter- Greeks indeed carry on business with French merested in their prosperity; it is certain to profit by chants against the will of the latter? And would their wealth; for nothing is to be gained from a French merchants consent to a trade which was not people who have nothing wherewith to pay. lucrative to themselves and consequently for their Hence, well-advised countries do all in their power country? – If the Greeks should become estabto favor the progress of their neighbors. The lished in their independence, and grow rich by republics of America have for neighbors savage their agriculture, their arts and their commerce, peoples who live generally by the chase, and sell they would become for all other peoples valuable furs to the merchants of the United States; but I consumers; they would experience new wants, and

have wherewith to pay for their satisfaction. It | the second and third causes as in the first. They is not necessary to be a philanthropist to assist said that depression in individual branches of them; it is only necessary to be in a condition to trade arose from over-production in those branchunderstand one's own true interests. — These es, and inferred that when phenomena of the same truths so important, which are beginning to pene- kind were seen everywhere there was the same trate among the enlightened classes of society, kind of over-production everywhere. But this is were absolutely unknown in the periods previous by no means the case. Disproportionate producto our own. Voltaire made patriotism consist in tion is one thing; failure to sell at the expected wishing evil to one's neighbors. His humanity, price may be quite another. It may look like the his natural generosity, lamented this. How much same thing to the individual producer, and yet happier are we, who, by the simple advance of mean very different things respecting the past enlightenment, have acquired the certainty that and future of the business community. Disprowe have no enemies but ignorance and perversity; portionate production is liable to occur at any that all nations are, by nature and by their inter- time in individual branches of trade. It is only ests, friends of one another; and that to wish when it becomes much more serious than usual, prosperity to other peoples, is to love and serve and is combined with other causes, that it is folour own country.”

J. B. Say. lowed by a commercial crisis. But the so-called

general over-production does not ordinarily occur OVER-PRODUCTION. Over-production is a except in connection with a crisis, and there it is term which is clear and simple as each man ap a result rather than a cause. By keeping this displies it in his own business, but which is liable to tinction in mind we shall avoid confusing the be misunderstood when applied to the business of real partial over-production which usually prethe community. This combination of apparent cedes commercial crises, with the apparent general clearness and real doubt has caused much con- over-production which is characteristic of their ad. fusion and unnecessary argument; so that we vanced stages. It is with the former of these that must begin with a careful analysis of its meaning this article mainly deals. — Disproportionate proin various aspects. It is defined by Malthus as duction on a small scale, such as constantly ococcurring “when the production of anything is curs in one or another branch of industry, readcarried beyond the point where it ceases to be re- justs itself so easily as to occasion no harm except munerative.” For instance: a manufacturer owns a temporary one to a few individual producers in his plant, but depends upon credit for the pur that line. The capitalists see their mistake the chase of raw materials and the means of paying moment their business profits are swept away, wages. Now if his product brings the expected and use less capital in their business; the excess price, it compensates him for all these advances, of supply is quickly consumed, prices recover, and gives him his business profit in addition. But and the business goes on as before. But special a slight fall in the price of his product, from circumstances may aggravate the trouble to the whatever cause it arises, will sweep away his extent of a public calamity, and special lines of business profit. This is the point where produc-production are particularly liable to such mistion ceases to be remunerative. A further fall fortune. When large amounts have been inwill not only leave him without business profit, vested in fixed capital, such as machinery, public but also without compensation for the wages he works, or, above all, railroads, such excess of has advanced, or without the means of paying supply can not be quickly consumed, but exerts for his raw material; so that the more he has its depressing influence for a long time to come. manufactured the poorer he is for it. To him, And, on the other hand, when special lines of then, all production on these terms is over-produc- production have been stimulated by a temporary tion. And to him the result is the same in its demand at abnormally high prices, as was the main features, whatever be the reason for the case in the iron business in 1873, and is liable to fall in price. He could have avoided the worst of be the case to a less marked extent in almost any the trouble to himself, had he but curtailed his other line of manufacture, it will be found that production in time. — But if we go one step back, after the excess is worked off and consumed, and look for the causes which occasion this fall prices still do not recover anything like their forin price, we find that it may be due to any one mer figures. We thus have two types of business of three things: 1. A disproportionate produc- liable to over-production; one because the excess tion of this particular article; 2. A hindrance of of supply is permanent, the other because the high any kind which prevents placing goods in the price is abnormal. The history of railroad buildmost advantageous market; 3. A general fall in ing on the one hand, and of iron production on prices. As regards its relation to the general the other, furnishes the most striking instances of business of the community, the first of these these results, as well as the most complete statiscauses acts in a very different way from the sec tics for our purpose. — Ever since the invention ond and third; and it is to the first of these causes of railroads excessive railroad building has been that the name over-production is most properly a leading symptom of an approaching crisis. In applied. The mistakes of Sismondi, Chalmers 1837, it is true, the system of railroads was not and even Malthus in this connection arose from yet far enough advanced to be an important factheir supposing that it meant the same thing in I tor, yet here we had the same kind of extrava

gance in building roads and canals on borrowed insolvent roads, swept away the profits of the capital, and the same effects from it. It was in Pennsylvania and the Baltimore & Ohio, and for England in the years preceding the crisis of 1847 the time greatly reduced investors' confidence in that the railroad first assumed its importance as a the New York Central. This is the typical effect subject of speculative production. Of the work of over-production: the surplus is not only in itself ings of a railroad system capitalists knew very lit unprofitable, but as long as it lasts will depress tle; but they went into the business with the same values of everything with which it competes. blind confidence that their ancestors had gone into And the continued existence of such masses of South sea bubbles. And this reckless investment undisposable surplus may be regarded as a leadof capital was encouraged by the blind belief of ing difference between the long crisis of 1873 and legislators in unchecked railway competition as the shorter one of 1857. — The extent to which an unmixed benefit to the public. 678 com- railroad over-production was carried is shown by panies—for the most part, it must be said, with the figures in Poor's Manual. In 1869 there were ridiculously short lines—applied for incorporation built in the United States 4,615 miles of railway; in the year 1845 alone; and of these 136 were ac in 1870, 6,070; in 1871, 7,379; in 1872, 5,878; and tually incorporated, 65 receiving the royal assent in 1873, 4,107: an average for five years of over in a single day. And this at a time when the sys- 5,600 miles. In 1874 the number fell to 2,105, and tem was in its infancy. By the end of the year in 1875 to 1,712; for the five years succeeding 1847 the estimated value of the railways incor 1873 the average was less than 2,300, or only porated was more than a thousand million dol about two-fifths the previous. The figures for Jars, and a large part of this sum had been act- France and Germany about the same time tell a ually expended, while most of the work was too

similar story Not less striking are the figures incomplete to bring in returns that could be used illustrating shrinkage of value. The “ Railroad in payment of interest. There is no need, for our Gazette ” of Sept. 27, 1878, furnishes statistics on present purpose, of going into the further history this point concerning forty-five roads dealt in by of the crisis of 1847; in a community which had the New York stock exchange, and in soundness been investing its capital thus recklessly, any presumably above the average of those in the economic shock must needs produce the most country. The aggregate value of these roads, at serious results. The crisis of 1857 is not so dis- their highest prices in 1873 (reduced to a gold tinctly an instance in point. There was indeed basis), was $567,000,000; at the lowest prices of in many cases a sudden shrinkage of railroad the same year it had fallen to $380,000,000; while earnings and a marked decrease in railroad build in September, 1878, it was still only $460,000,000. ing—3,647 miles being added in the United States Still more to the purpose are the figures concernin 1856, 2,647 in 1857, 2,465 in 1858, and only ing foreclosures furnished at the beginning of 1,821 in 1859. But this was hardly over-produc- each year by the “Railway Age.” In 1876 there tion in its truest sense. The shrinkage came else were sold under foreclosure, (this term being apwhere even more than here. There had been parently used in a rather wide sense), 3,846 miles speculation and extravagance everywhere, and of road, representing $218,000,000 of capital; and much property changed hands as values settled in the four years succeeding, 3,875, 3,902, 4,909, down to a truer basis. But there was no useless 3,775, miles of road, representing investments mass of lingeringly insolvent capital, almost no of $199,000,000, $312,000,000, $243,000,000 and disproportionate production that could not be $264,000,000, respectively. One-fifth of the railmade use of in some way beneficial to the com way investment of the country sold under foremunity. – Not so in 1873. For five years men closure in these five years of settlement! Whether had been building railroads to an extent hitherto this has taught us its lesson remains to be seen. unheard of. High wages and prices had made Men have lost faith in unlimited railway comthe real cost of construction great, and the extrav- | petition; but a specially pernicious form of overagant spirit of those years had added other items production is developed in the case of parallel of expense. Only an abnormally stimulated trade roads, built to sell rather than to operate; for could enable them to meet their obligations and the sake, that is, of forcing the old road to furnish profit besides. But the panic of 1873 left buy a controlling interest to avoid a railroad trade abnormally depressed; and many roads The enormous increase of railways in rewere in no condition to meet their obligations. cent years (4,721 miles in 1879, 7,174 in 1880, Sooner or later they had to reorganize; but before 9,358 in 1881, 11,343 (?) in 1882) gives ground for this could be done they succeeded in doing a apprehension, even though this rate of building great deal of harm to other people's property as is not likely to continue. - In looking at overwell as their own. Once regarding themselves as production in the iron industry, variations in insolvent, they felt exempt from a number of re- price are even more striking than variations in sponsibilities that had hampered them. If they production. In January, 1871, the average could not get business at a paying price they Philadelphia price of No. 1 pig iron was $30.50 would get it at a price that did not pay, and force per gross ton. From this time it steadily increased competing solvent roads into non-paying rates. till, in September, 1872, the month's average was Hence arose the railroad wars culminating in $53.87. In December, 1874, it had declined to 1876, when the Grand Trunk and the Erie, then $24, a loss of more than one-half in a little over

war.

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