New-York tribune., 1875-05-15
PROSPECTS OF TRADE.

PROSPEClS Of
REVIEW OF FORMER PERIODS OF SPECULATION AND
OF THE TIME.
To the Editor Of Fhe Tribune.
SIR: The Spring trade has been partial
failure Instead OF volume OF business large enough o
make up for the Winters Information, have hal stiIi
smaller trade than had in the Spring Of 1874 hs
time for study the present situation ana tho
probable duration OF hard times - and IL s time foe
newspapers articles based upon the real rather
than the ideal condition OF affairs. To be prepared by
large purchases for demand that does net come Is far
serious than 10 have to send away ones least yau-
able customers from lack OF goods. The latter means
some loss OF profits but the former means eating
into capital and possibly entang disaster. often hear
merchants say that they learn OF revival Of business
except from the newspapers The figures Of the i'm port
trade that you somo days prove that trada
has been decreasing since the panic which, indeed,
large sellers Of goods know too well How, thcn 10 you
account for the talk OF your cotemporartesi
Perhaps some light may be thrown upon our financial
condition by a consideration OF the crisis Of 1897 and
the seven bad years that succeeded It. It VIII be recol
lected that the Erie Canal finished in 1925 and that
the consequent development OF the country bordering
the lakes led 10 speculation In real estate both In
the West and the East The mania extended all over tho
country The OF Public lands in 1888 amounted
about - 100000, but in 1885 reached 25 900 0OO fs
ing in 1888 to $4,000 0O0 City real estate fayorits
investment. NewYOTk City assessed at 500 900 900
in 1885, but again put high that for fifteen
years. English capital began TO seek investment here
about the year $780, and newspaper OF the period COM
plains OF the great and Increasing quantity Of silver
Some United states bank stock had been held by foreign
ers from still earlier date State and Canal stocks
sold abroad In 1s2s1s32 By the help OF railroads,
the industrial development OF the country from 1880 To
1910 very great The Bank OF the United States in
creased its loans in $50; still further in 1881 from
10000 600 to $50 900 0OO and in 1882 10 70,0000O0
In 1888 FOR the purpose Of gaining reharer by show
ing that the public could 10 without the Bank 10
tracted It's loans s17,OOooOO. and then, seeing that
other banks taking its business it extended again
In 1884 The banking capital OF the country increased
from $137 900 900 in $50 to $1lj 900 in $780, and
to 1858 900 900 1910. The increase in the
second Of these decades s shown by the fact that
banking capital in 1854 only $500, 100000 tabls
of deposits and circulation gives their at s276Js3
075 in 1887, 81 SO per head Of population then an
almost steady decrease to $11l732, ,236 in ls43i
or only S6 lJ for each nhabitant In May, 1897
there was run upon the New-York banks, ona
Of which failed. On the 10th OF May, they
suspended in body law being passed to allow snspen
for year BY contracting their issues they wera
enabled 70 resume on May 10, 1888 During the yeaa
1888 there was revival OF trade, and Engsh capita!
this payment for bonds Ot the United
states Bank OF various states and Of
Inc en- crrsngy wa NOT greaty redaoed IN 80 , ana
The troubles thought 10 be over although there had
prosperous times preceding. In 1888 the United states
Bank became involved IN specuauon- In cotton Tha
decline OF this staple caused the suspension Of the bans
Oct 10 1899 It opened again, but a run spon 10
brought final failure Feb 4, isl1. IN 1889 there was
general bank crash throughout the land The year lsfS
was one the goOmiest in history. We exported
&iO,O0OO00 merchandise than We imported, ant
We were paying for previous fIstiying by producing
prices low enough suit crcditOrs hOrtgaged prop
erty passing into the hands OF mortgages fac
tories idle, trade dull investments were slow
and money worth from 3a % 4 per cent. per an.
mum. In Il III began round OF prosperity that lasted
until 1857 though not without occasional Interruptions,
such that in 1854. For many ~ the foregoing facts,
and many more 0f no less interest indebted ~ Prof.
Summers History n American Culrency' 4
What is present financial condition IT dozen
OF unparalleled industrial development nave Deeu
offset by eighteen months OF partial -tagnation, then
should we subscribe Wendell Phillpsa notion that
our late war experience scattered hall the cobweh
q hundred year" In 1861 the United states Govern
the fashion Of borrowing money and ever since
10 has eagerly followed by states, counties, eitcs,
townships villages corporations and individuals The
the earth has been altered and improved bv
armies OF men paid win borrowed money. There can be-
hastened by OF paper mOney. " times have
changed thai debts blessings then wendell Phi'
lips Is zht II have already be%u another dozen
years Of RAPIDLY increasing wealth, then harimoney
have no arguments left for surely conld not
have taken such tremendous strides without tho help of
paper money Financial history 10 us 70 point Ia
The next few years years O small prOhis ana some
LIQUIDATION OF old debts. We think that The more nrmy
ON merchant adhere to the most crylyc principles
the sooner sall reach solid foundation Tor many
years or real prosperity. kADN
BTODkigR May ., $50