New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-01-07
BUSINESS PROSPECTS.

| considerable, though by no means uniform, re-
duction in current values during the past year
still more during the two years 66 and ". This
! is not merely nominal reduction, caused by
the appreciation of our currency. The premium
on Gold was not far from 80 alike on the LIST
inst. and on the list of January preceding; and
it was not much higher twelve months before.
Our current dollar is worth just about 70 cents,
or three -fourths of its face, in the money of
the world; and so it was year ago:
yet Cotton has fallen, meantime, from
SO to 16 cents per pound, Copper from
2G or 81 to 81 cents Iron from 10 to 20 per
CENT and nearly every description OF Fabrics
has fallen from 20 to so per cent. There were
some staples-WOOl and Coal conspicuous
among them-whch had already gone down to
| low -watermark year ago, and sohave not fallen
materially since; while, on the other hand,
most articles of Food PORK and Mutton ex-
cepted) are held at high rates, because the
| last two crops were below an average, not
merely in this country, but throughout the
civilized world Still, taking all things to-
gether, we estimate that the prices of products
will average Is per cent. lower now than they
were year ago. while Fabrics of Wool and
Cotton have fallen much more than that We
believe that $50 will buy more cloth or clothing
in this City to-day than $75 would have bought
| one year ago.
| Of course manufacturers have been rowing
against wind and tide during the last year.
Their stock steadily deprecated on their
hands if they bought 100000 worth OF raw
material and worked it up, its value sunk to
| $4,000 while it remained in their hands, ana
| they were often obliged to sell at loss.
| Hence, many concerns have failed; while
others have used up the savings of past years
and afforded their stockholders no dividends.
Such is the fortune of war. They generally
made money while prices were rising, and
must have expected to lose whenever markets
| should be falling.
| Speaking generally, we may say that those
who sold their labor for wages had the adj
! vantage of those who bought that labor IN 1867.
| The latter paid more for the work than the
| prices obtained for its products would justify.
| And, as there is no prospect of an advance OF
prices we do not gee how general and con-
siderable reduction of wages in 1868, from the
rates paid in 1867, can be avoided. Nor is there
any hardship necessarily involved in such re-
duction. The man or woman who can buy
| clothing,
afford to work cheaper than then. But, how
ever this may be, it is plain that lower wages
| are inevitable.
| Gov. Sprague of Rhode Island lately assured
| the Senate that our country had so fallen be-
| hind of late in the race for cheapness that no
| American product could now be exported with
out loss save certain of the products of our
| soil This is going quite too far. We export
| Edge Tools, Spades, Shovels, Sewing Machines,
| &C., and have of late resumed-we believe, not
| TO much proft-the expectation of Drills and
other heavy Cotton goods to China. Yet the
fact remains that the high prices created
| by our great Civil Warm other words,
the diversion of our energies and efforts to the
work of destructiOn-have seriously crippled
our capacity to compete with Great Britain,
France and Germany, in supplying savage and
semi -barbarous peoples with Wares and Fabrics.
We have ingenuity skill, machinery, and COM
mercial talent; yet these can hardly bear up
against the fact that our manufacturers regularly
nav twice TO thrice as much for labor as do their
European rivals. And beside, we have become
producers of gold and silver for export; and
nations that sell these rarely do much at selling
| manufactures.
Ship building languishes among us; and those
who ought to know better repeat the assertion
that high duties on Imports are the cause. Yet
it would be difficult to show that the cost of our
sailing vessels has been materially increased by
the Tariff. We grow and cut our own Timber;
Copper is lower lin gold) than ever before;
Iron is not high and has fallen considerably
within the past year. The real obstacle to
cheap ship-building among us is the high wages
of skilled labor. Why are not the grumbles
honest enough to admit this
But, if ships could be built ever so cheaply,
we presume ship building would still langush,
because ships are already abundant. We form
erly exported nearly One Million Tuns of Cotton
alone We now export less than half that
amount, and are not likely to increase. AS
we have already said, gold-exporting nation
is likely to fall off in bukier exports. We do
not need so much shipping as we once did, and
of course do not build it.
On the whole, we predict that 1868 will be a
better year for business than 1867 was. good
many who are now secretly bankrupt may be-
come openly SO before another New-le
while thousands will incur losses by ignoring
palpable facts and attempting to carry sail as
though the winds were not ahead; but let
our business men comprehend that prices have
fallen and cannot be restored-let them grad
uate wages and prices to the actual condition
and they may go on safely if not very prosper
ously Our wants are still great, and they
must be mainly satisfied from Home sources.
Let every one resolve to work for the best
wages he can get let our business men be con-
tent with moderate prices and small profits,
and we shall soon be once more on the high
road to thrift and prosperity.