Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1875-05-15

One of the most careful Journals
on our exchange list, the New
York Ec17si,ay Muii, in an elabo-
rate article compares tire financin
crisis Of 1878 with earlier events of
similar character, and finally
SENS up ia favor Of q revival and
restoration of business and credit.
In 1857 and 1861 as well az in the
earlier financial crisises Of 1887 and
1857, many Of our readers will re-
member that mercantile enterprise
had been greatly expanded, SO
that the enormous balloon Of infla-
ted commercial credit was ready to
hurst at the smallest concussion.--
On the contrary, in 1878, we had
no such inerdinate and dangerous
expansion Of mercantile credit
Our commercial men, our manu-
facturers, and our industrial COM
munity had rot been able TO bor-
row as freely as formerly. They
had been in part, shut 0u, from
the usual facilities of the money
market, being out-bid by railroad
corporations and other similar bor-
ruwers' Thus it happened that in
The panic Of 1878 the first shock
swept away fewer Of our merean-
siie firms than any like convulsion.
This fac: was abundantly proved
bv tie statistics Of failures, which
showed the very few mercantile or
commercial firms collapsed except
such as had been using the capital
outside of legitimate business, and
exhausliug their means by specu-
fations TN reel estate, gold, stocks,
cotton, grain, or other sensitive
values.
The Moil properly adverts to
the enormous amount OF money
sunk for the time In unprodnctive
railway enterprises which brought
about lust such q crash here and
took place in England from u sim
liar cause in 1877. This money is
not, no Never, entirely lost. After
awhile these enterprises will be
productive. AS to the advantages
We now enjoy in methods of repa-
ration, tbs rapid increase of capital
is suggested and the good effects
flowing from economy.
AS the panic was precipitated
upon rs when commerce was de-
pieted Of capital, SO the effects oil
The panic can only pass off and be
siissipated in proportion as new
capital is generated and aceumu-
lates that which was lost.
Another method by which the
aiilazing recuperative powers OF
our financial system are exhibiting
themselves, is the rival of the old
ssegn spirit of irugality, economy
and general thrift, which did so
much fer the rapid economic
growth of this country in former
days. Perhaps the future historian
may point TO this spirit of econo-
my thus revived among us by the
panic as one of the most precious
of the compensations which thai
disaster was permitted by the be
neficent arrangements OF an all
wise Providence to bring in its
train. However this may be, the
estimate has been made, and with
much semblance of truth, that the
savings of our people since the
panic have fully replaced with new
capital the immense losses which
The country suffered in lis old ac-
cumulations of capital by the finan-
cial crisis of 1873. If this be so, il
this estimate he verified hereafter
the Datient that has so long been
languid and suffering from loss Of
blood, ought soon to show vigor-
Gus proofs of restored vitality and
the anticipations Of lively Fall
trade have obvioas facts to rest
upon.