Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1873-09-10
The Trade of the Country.

Inc tINVP Oh lNt NOUNlI.
The prospect for a good fall trade is
highly encouraging. The crops of the
country we're never larger or Of better quail
ity All the reports from the West in
dictate that the whoa, product is more than
commonly good, while the cotton crop is
above the average The local crops also,
in all parts Of the country are unusually
excellent. The dairy produce Of this State
is remarkably good both in quantity and
quality. The farmers have never cut
larger growth Of hay, or harvested better
Geld crops. The resources Of the country
would seem to be exhaustless, aud the gov
eminent will be able to meet its interest on
debt owned abroad, with but little dirturb-
ance Of the money market.
The movement Of the crops to market
will, Of course, give a vast business to all
tho channels Of transportation. Canals
railroads and steamers will be overloaded |
with freight for the next four months This
will put millions Of greenbacks into circu-
latiou. The producer and the carrier will
both reap a rich financial harvest There
Is little reason to look for any serious fall
in prices The foreign demand is active
enough to keep the price Of all exports very
steady. Butter, cheese, cotton, and all &C.
reals, will be more likely to advance, than
to receie in price. It is certain, therefore,
that producers will be able to expend as
much this fall in their purchases as
ever before. The immense crops are the
measure Of the purchasing power Of the
country, and give a very accurate index Of
the amount that will be devoted to general
trade
The tendency Of the country, for several
years past, has been to great public and
private extravaganza The expenditures
of the government after dcducting the in.
terest on the public debt and premium on
bonds purchased, pensions and army and
navy expenses, have increased nearly TWEEN
ty.Gye millions Of dollars per annum since
1865 The army and navy expenditures
have gone up in proportionate measure.
Private expenditure is on corresponding
scale. The purchasing power of money
has been greatly reduced in a score Of
years Five dollars now are not equal to
two dollars twenty years ago. 1t takes ten
yards more Of silk to make dress now
than in 1850. With the diminished power
Of money to buy imported goods, and with
the increasing extravaganza in dress and in
living n man may spend three thousand
dollars with no more to show for it now,
easier than he could spend thousand a
few years since. He will get no more COM
forts or Injuries for his family, clothe and
feed them no better on five thousand dol
lars than once he did on two thousand
But this extravaganza on all sides, aud this
reduction in the purchasing power of money,
swells the amount Of trade. All manner of
consumption is vastly increased, and prices
have appreciated even ina larger ratio, and
consequently trade must be heavy.
1t is fortunate that the productions Of
the country are so various and almost in
exhaustible 1t is on this basis that We
reckon our prosperity. The vast crops
would seem to be able to withstand any
amount of national Encouragement and
taxation, and any amount of personal ex-
penditure and extravaganza. Yet it is an
unhappy circumstance and condition that
the country is SO largely in debt. The
great railroad corporations of the country
are especially burdened. There is hardly
a corporation operating the great railroads
East or West that will ever be able to pay
its Indebtedness. The Pennsylvania Cen
trial, the New York Central, the North
western, the Erie, and others, are loaded
with immense debts, and their bonds are
mainly held abroad. 1t is time of un
bounded railroad extravaganza. The sol
vency Of railroad company is estimated
solely by its capacity to borrow money
Let the Northern Pacific, the Union Pacific
the Erie, the New York Central, tn,
Pennsylvania Central, be unable to borrow
and they would at once be precipitated into
bankruptcy. Their debts are out Of al
proportion to their resources 1t is mort
| hopeless that they should meet their obliga
tons than that England should pay it
. debt The rates of interest they pay are
simply impoverishing. But so long al
foreign holders of their bonds have M
means of enforcing payment, the directors
Of these vast corporations may snap theii
: fingers at their creditors, and pay or no
pay their interest at their own pleasure
Still the time must come when they will b,
unable to borrow any more, and then they
, will have TO 60 to the wall or retrenct
$ their expenses. To retrench means poverty
: to thousands.
At present, however, there seems to b,
no need of anxiety about the trade or re
, sources Of the country. They are built
not upon borrowing, but upon production
, And while the capacity Of production il
not developed to a ti,he of its limit, Their,
is no special reason to fear any extended
commercial reyulsion We are soon to con
? troll the coal and iron interests Of the world
and with these, aud cotton and wheat, W,
may at some time bring the balance Of for
eign trade in our favor. The advanced
wages and decreasing productions of 9th
er countries are rapidly telling on ou
+, industries and resources. Our great pro
r ductions are fast outgrowng the need o
y protection, and we shall soon be able to un
dersell the world in the main staples of tn,
! worlds commerce SO long as this coun
, try is destined to reach the highest roun,
}. on the ladder Of commercial greatness, i
$ is of small consequence what may be tn
e trade of single community for singh
year. The grand result is certain, and tn,
u i i