, 1876-07-26
FINANCE AND TRADE.
Encouraging Significance Of tho Reduo'
ton in Rates Of Discount.
Tho LoarAarket Dull.,.Stw York Exchange Flfu1..'
eltarinss, s2,soo,oo0.
The Produce Markets Moderately Active,
and Stronger.
arnin Higher All Hound---The supply
Movement Dull.


FINANCIAL.
Tho ease In the rates Of discount continues To be |
The chief feature Of finances here as throughout the
world. The banks, With the inevitable conserva'
tism Of established Institutions, oppose the dc.
crease and lament Il. They fall 10 tscognI1o that
tower ratea Of ntercst necessary to the cheaper
production that alone can bring back 'gooa
times" The disresA TO be seen In tvosy class ard
the economy which in ovcFy department or cxpena'
iture ia teng 70 severely on Tho productive in1ns'
tries and pursuits Of tae country, aro The result
simply Of tha fact TINT prices too high for tho
consumer IIow the consumer has como to ind
hlmeclf no suddenly unable to continne Tho
expenditures which themselves carried prices
wagca, and profits mp 30 high. II Ia not necessary
hero to discuss. Tho fact is plain. TIC con-
su.ner IL unable 70 epcnd on the scale no estao'
lshed in tho years Of prosperity before the panic.
Tie producer must look elsewhere for his market
er must bring his prices down 10 the level Of tho
mcnns Of bis customer, II manufacturers anu
other producers could do both they would expert.
cnco Inc maximum, Of relief. II Africa bhould
provo to bo great market for tho Iron, cotton,
and miscellaneous manufactures Of the Older
world, the most beneficial cncets would Do a. onee
cxpericnced. II tho Black Hills, and tho country
west should turn out, - thcra begins 10 b so1no
reason TO expoct may DO tho case, To bo great gold
uyoIucipr coupttlcs, and. should attract and en-:
rieh NJ It would In that case, tens OF thouaAnds Of
men now idlcrs and non 'producera, the impefua
given 10 all tendc and industry 1n this country Would
beImmepao. Pending such almost romantic mcana Of
assistance, our undovelopod productive industries
havo three tht1gs to do TO recover from the blow OF
1879. They must a1low the!1 surplus stocks 10 be
absorbed BY tho community; they Mnet restrict
their production TO the moro economical uenandi
and they must lower their prices. This tripariite
policy Is now IN active operation. Mills and man
ufactur0rs have been closed and run on halE tlse.
Auction sa!ca hnvo bccn rcsortcd to for tho distfl
button Of Tho stocks OF woolcus, cottons. and
AauneIs. Pennsylvania md New England arc very
cnrotully .radjnst,ug thcir rate Of production to
the present appetite OF tho market. Tho great
point Of cheaper prices 10 In some respects tho
hardest TO coneedc. Wages have to bc reduced.
md workingmcn and employees resist Tint to tho
1nst New ecouoraics, ehortcr and less cxpenslvo
methods, havo to bo discovered, md thcso take
time Finally, capital has to yield I, .. or . per
cent Of lis annual rata Of Interest, md
on that point capital IL "a con-
eoryntlyo ns labor is about wages. Banks have
IN submit to cheaper rates of discount; lenders 10
smaller intercst. Dear capital s an impossible cl'
cu,cns In recovery from panic and the succeeding
proatrnttop; not less than deas labor or dear mn"
tsrisl. CAPITAL, Notwithstanding tho hostile con-
soryat,su Of Tho banks and moncy-lenacrs, has be.
como much cheaper. Loans can bo secured now at
lower rates than In many previous years. Dut this
IL A neeulisr kind OF cheapncBs. It. is cheap 10
those who don't want II. 1t Is not tho eheapncss
OF abundance. It's chenpncse which comes from
q loss Of employment rather than from acennula'
tlon and growth Of profitable use. Dut this &C:
cumu1ation and growth arc In constant ptogTesc,
and arc building up tho cnpisal OF the country and
when It becomes rca1ly cheap, when 1t ts obn'na'
hle at reasonable rates, on reasonable sccurity,-
Tint Ii, when capitalists are willing To loan It III:
stcaG Of hoarding It, aud do not Insist thae when