The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1874-01-24
Tho Business Outlook.

Inc business UNLOCK.
The New York hank returns of Saturday
show that the average Of deposits last
week, as eonparcd with The average for
tho week ending December 20, 1873, was
larger by more than thirty.six millions Of
dollars This is an enormous increase,
and betrays how Of money into New
York city which is BY far the most import
ant fact in the financial situation. Il is
not necessary 10 inquire in detail whence
this money comes. The Times says,
however, that ID is only partly the result
of collections of Just matured obligations,
or Of extensions accorded by city creditors
to their debtors list fall, and that much Of
il comes from country banks. In connec-
ton with the accumulation Of money at
that point, there has been reaction from
the low prices Of few months since, and
this is traceable, perhaps, not so much to
actual current demand as to a disposition
to discount demand anticipated in the
spring. The Times thus pictures the
situation and prospect:
No one who knew this country only
from observations made, say between the
middle of September and the middle of
October last would believe ii possible that
within three months from the latter date
the characteristic of the money market
should be full supply, not to say an over
supply, Of money, seeking almost in vain
for profitable Investment. Yet that this
is now the case no one will doubt. There
Is not the slightest question among bust
ness men that the accumulation Of money
so rapidly and in such large amounts is
reviving the spirit of speculation, is get
ting great many shaky enterprises on
their legs again, is making dealers ven
turesome, and is, in short, paving the way
to an expansion Of operations the end Of
which no one can forsee. We have al
ready pointed out that the vicious mode
Of doing business on the stock exchaegc
which prevailed before the panic, and
which was one Of the things which caused
the panic, has been resumed, We do not
suppose it has lost its power for evil. 1t
was argued then, and still is, that IL the
banks could not follow up the old methods
Of lending their money, they could not
proftably handle the immense balances
which, as consequence of our banking
system, are periodically heaped up in this
city.
Money has been arriving in New York
for three weeks Mt an average rate oftwelve
millions a week. The result is that it has
pressed, and is pressing into all the ave
nues where it can hope to find employment
at even moderate profit, and we may be
sure that the stimulous Of a plethoric money
market in New York will be felt from the
Atlantic to the Pacific.
We need not point out the cheerful
view which is taken of the condition Of
things by those who are brought most i'm
mediately in contact with it, There is
very general and not an unnatural feeling,
that the effects of the panic have passed
away, and that now everything is to 90
prosperously, With money plentiful, trade
is expected to be active, new enterprises
popular, and the recovery from old en-
barrassments possible. But there is re-
verse to this picture, which must be looked
upon, and which will not escape the eau
tious business man. If things are to 90 on
as before, may they not also end as they
did before, or worse If the country has
before been stimulated to undertake gigan-
tic enterprises which it could not manage
and which swallowed the capital and credit
Of great houses, until their fall shook the
country, may not recurrence of the slim
ulous produce similar imprudenoe, bring
ing about similar dangers? Have we re-
covered from the effects Of the panic SO
completely that we can afford to forget
that it ever occurred, and to disregard all
the lessons we read ourselves ut that in
teresting period
We have been passing through period
when credits were universally shaken, and
from which large part Of the mercantile
community emerged with an enormous load
of extended obligations to carry. The
system of banking which depleted the out
lying country of its currency at the earliest
possible moment, to gather it in New York
for the use and abuse of spectators, is not
reformed or modified, and stands small
chance Of being so. The whole country
through, people are crying to Congress to
help them; but that body is not likely to
do anything Of the kind, IL, indeed, it does
not make matters worse. Is ii not safer,
then, in all business transactions, to move
cautiously We believe it is, and if we
were to sum up the business situation in
a phrase, we should say it was one of
smooth and rapid sailing in the midst of
unseen but possibly imminent dangers.