The Fairfield herald. [volume] (Winnsboro, S.C.) 1849-1876, 1875-08-18
The State OF Business aud What 1t
Touches.

The fact that tho failure of Dun
can, Sherman & Co., carries with it
SO few evil Consequences to business
in general, is happy indication,
snatched out Of private grief, that
prudence just now controls our mcr
camille operations. In every branch
of business meu are studyin5 ocono-
my, sorutinizmg credits, drawing in
sail, in tact, and keeping sharp look
out for breakers. The two years
siucc the panic of 1878 have bcon
spent in he seckclotl. and ashes Of ell
forced fasting from srcculation.-
Dnbts have been paid anu collected,
and hazardous ventures scrupulou usly
avoided.
Meantime, however, the people,
though getting wiser, havo uot been
growing richer. Ict they are laying
solid the foundations for future pros
pcrity. The decline iu values which
appeared at the time of tho panic was
hot fictitious, but real. The uan mho
catimatcd his property five Years ago ~
million must cut down that hgurc
by several hundred Thousand dollars
il he desiies to cipher out its present
worth. 1t is true that the safest i'll
,cslmcnt stocks are very high but
that is an Indication that such stocks
arc few in number, an.; az thc chances
Of good Investment are greatly re-
duccd, those that arc first rate com.
mand Il big price. This price brings
h, l,n inf nn ,,,
in most such Gases to five or six per
cent.
Vast sums of money arc now lying
idle, bringing in no iucrmo ,whateyer
.n>'' =" oViu. IuIs Iacj lcugtncnS
the face Of many q Mi;'i0nuiro as he
drinks his Congress water at
Saratoga or drives his drag at New.
port lC is to tho present reaction
OF conservatism that this boarding of
money is very largely due. Capital
dares not come out of its holes, and
will there rcmaiu in dormant idlencss
until tho business world puts on IL
brigEtsr and more inviting face. Il
failure like that OF Duncan, SHERMAN
q Co., makes it draw in at.ll further
its timid head.
The low rate of interest for money
now provailiug-two orthree per cent.
is giving tho banks blow, but one
which they can stand. it cuts down
their profits, next January's divi-
dcnds are likely to show how serious
ly. Commorcil paper for discount
Is both dangerous and less freely
offered than formerly. Money il i,
drug, and fills The vaults rather than
earns money by lending. Tire prac-
tice of some of the banks and banking
houses of paying interest Oh oertuiu
large out of town deposits is Que that
must fall into disuse. IL was never
sound business policy.
Wall street has too many bankers.
They have swarmed there since the
war an when money could almost
DO picked up on the pavement, they
of course G!lod their pockets. just
now, however, there is precious little
profit in banking, and such failure
rs that of Duncan, Sherman IL Co.,
will make men cautious about trust.
ing any except tho few houses whose
financial foundations are laid on u
golden rock, aud whose credit has
ltooGb the blasts Of many storms. The
business Of placing fancy railway
bonds, which bui't up hest Of bank
els, is pretty well douo mi,h. There
is no demand except for pure spccnla-
tion for amy securities cxccp, those
which have actual and assured value
be, ond the ordinary changes and
chances OF financial cXpcrlence.--
These are high, as we have said for
people arc learning that the old law
that security Lessons as tho amount Of
interest incccnses, holds good even
IN a young and cnterprising country,
which pushes railways out into the
desert aud builds factories in every
valley.
Real estate must always continue
as the central security. 1t however,
Goes not maintain itself at It's best
figures, thcugh money IN ic that can
bo kept there is, OF Course, likely to
so remain III tines when Trustworthy
securities are believed to be so few
Never III the history Of New York
we've So many stores vacant, and
dwelling houses arc not in active
demand at such prices as landlords
desire to got. Business cannot stapd
tho strain of tho heavy rents which
came in With tho war and succeeded
it. For ton years we built vast
pios OF storehousc,, expensive buiI..
lngs for commercial purposes, an"
,pumptuous Offices for thOso who coul'!
Gayc done Just as well III narrower
quarters. the rasuit has been 70
give tho owes par; q! ,ho a;.y = .""r>
imposing tco% nut wlao o"P.t"l >!oas