The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1874-07-09
From the Pittsburgh Telegraph.
Plethora Of --stagnatton IN Business.

FROM the FtHS6uTyh telegraph.
Plethora ofMoney--stagnatiou in Burinevs
The cry Of the infationists 10 dis
cussing financial bills, during the lat,
session of Congress, was that tn,
country needed more currency. Blu
the facts are that at no time for many
years has money been SO plentiful as il
now is in proportion to the business it is
required to do. The rates for call loans
in New York on Saturday, in the face Of
rather buoyant stock market, were
only from two to three per cent. Iu
Chicago the daily papers remark a
greater ease and lower rates-fve and
six per cent.-in the money market
than have been known there in many
years. In Philadelphia, Boston, Balti.
more, Cincinnati, St. Louis and Pitts
burgh the same plentiful supply of
money is reported. 1t is In excess of
the demand for it for legitimate bust
ness purposes. Sufficient confidence
has not yet been created to warrant
many investments in doubtful OR specu-
lative enterprises; but that time will
come again, just as in the past it has
always marked in successive steps, the
progress of business from excessive dull
ness to buoyancy and enterprise. There
are regular cycles of good times and
bad times-ot distrust and over conf
dence-of rash speculation and the in
evitable blow-up.
This disproportion in the supply and
demand of money at this time is not
confined by any means to the United
States. All the money oenters of the
world are overstoeked with capital, and
their condition is by no means health
full. The Bank Of England rate is
lower than it has been in ten years.
France is the only country where money
commands much more than nominal
price, and this is due to the remarkably
energetic and sustained efforts which
are being made by the Bank of France
to accumulate money enough to resume
specie payments. The demand thus
created, while it is exceptional in its
purpose, will also be temporary in Its
effects. The general fact remains that
in all the places throughout the world
which money seeks, and where money
is sought, there is great deal more to
be had than is wanted
The fact comes from simple cause.
The whole active commercial and pro
ducipg world has suddenly found that
its production has outrun its necessities;
business droops just in proportion as
this process gains until state of gen.
eral stagnation is reached. Comment
ing on these facts and the probable out
look for the future, the New York
Times of yesterday says:
There has been surplus of production;
the surplus must be consumed before new
demand and new activity arise, and those
who possess little or none of the surplus
will be for II while with limited means to
supply their needs. Dull business, mum.
bers, more or less great, out of employ.
ment, and general discomfort, are the
first consequences of the causes we have
recited. These we, in common with nearly
the whole of the commercial world, are
now experiencing. But these do not ord:-
narily last long. They are generally fol-
lowed by a gradual revival of business, of
which, with US, there are already some
signs. The accumulated supply brings
down prices; low prices tempt to increased
consumption; the surplus disappears, and
production is again called for. The mo.
ment this can be resumed proftably it will
be resumed, for nothing is more inpatient
than idle capital. In some branches of in
dustry production must begin with reduced
wages, 10 meet the lower prices, which ad.
vance but slowly. But once production be-
comes fairly profitable, wages will be
raised. And this will be the course which
things will take with us. The money pie
thora is by Its nature q condition of affairs
that tends constantly to pass away. While
it lasts prudence and patience are particu-
larly necessary, but encouragement is ty
no means justified.