The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-11-30
BUSINESS DEPRESSION - CLOUD |
WITH A SILVER LINING.

From the N. Y. Times.
There can be no use in Disgusting the fact,
even if it were possible, that a profound
anxiety pervades the business community in
regard to the coming year. The long pre-
dlcted ''shrinkage, which has been so often
falsely prophesied that people have come to
doubt its ever occurring, seems at length
really to have begun. Prices of commodities
have already begun to fall; the currency is
slowly but steadily appreciating, and the
result is, as was to be expected, temporary
slackness and dullness in almost all branches
of business, and considerable tightness IN the
money market. One of our most intelligent
financial organs has argued recently that
there can be no general contraction going on,
as the volume of currency remains the same.
But it should be remembered that relative
contraction may take place without direct
calling IN of currency ahoat. We may be
doing more business with the same volume
of exchange. This must now be the
fact. Each year, owing to the enormous
immigration and the profits of produc-
ton in such favored regions as ours, there is
a considerable increase of national capital,
and, therefore of business and exchanges.
The South, moreover, has surpassed her
normal annual increase of production during
the past three years. Owing to the character,
too, of her laboring population, she is alb
sorbing more of our currency than she ever
did in former years That is, the negroes
keep the greenbacks they have earned, and
hoard them with the object of ultimately
buying land. There are more exchanges now
throughout the country-or, in other Words
there is more businessman there was three
years ago. SO that relatively the currency is
not SO redundant as it was then, though still
far beyond our needs.
The appreciation, too, of the currency, of
''the fall in gold, is a matter partly meta
physical as well as fnancial-that is, it de-
pends on the general feeling and confidence
of the public, as we'll as on laws of economy.
There is now general expectation abroad
in the community that prices are beginning
to fall, and that o dollar will be worth more
in value few months hence than it is now.
Consequently, consumers hesitate to buy eX-
cept what is absolutely necessary; dealers and
jobbers are forced to make smaller pur-
chases or "to carry" heavy stocks; manufac-
turers and importers find themselves with
large quantities of goods on hand, which
they are anxious to dispose of, as their price
may continually fall. Money is in demand to
carry these various articles, or keep dealers
ahoat till they find purchasers. But lenders
are becoming timid in face of falling mar
ket, and great stringency shows itself, espe-
cially in the Western cities.
This is without doubt, all of it, healthful
process-the first step towards sound finan-
cial condition. The great body of the COM
munity are benefited by it, as all commodi-
ties will become cheaper, and above all,
business will at length settle itself on a
sound basis of exchange. 1t should never
for moment be forgotten that those who
are injured most by an inconvertible currency
are the consumers-the great masses of the
people.
In general, the country is strong and
rich; one large portion-the South-excep-
tionally prosperouss many great interests are
in an unusually vigorous condition, so that
we were never better able to bear the
strain necessary, if we return, gradually
and cautiously, to healthy, natural financial
| state.