Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1876-05-13
The Universal Depression I'm
Business.
London Tines.l


The Directors OF the Bank of
England have reduced their rate
of discount to 2 per cent. 1t has
never been lower, and it has very
rarely beer as low The rates of
interest allowed on deposits by
the icint-stock banks are,of course,
lower than the bank rate of dis
count, and money at call receives
q return Of per cent only. Con-
currently with this condition OF
the money market, there exist, In
almost every department OF indus
try and of commerce, great slug
pishness or absolute deafness OF
Enterprises limited extent OF pro-
duction and core. ponding con-
traction of sales The complaints
are universal that business is dull
and profits are low. The atlstl-
cal returns of the Board of Trade
show that these statements are not
expressions of groundless discon-
tent for they reveal great and
sometime past continuous decline
in the value and quantities OF the
commodities in which we deal
with our foreign customers. IL IS
in agreement with these facts that
adyices from all theprincipal marts
ofindustry tell US the same tale OF
declining and Improbable bust
ness. :,
There has been commercial dull
ness in the United States for more
than two years, and Canada has
for some time been afflicted by the
depression of trade in the greatest
customer of the Dominion--the
neighboring Republic. The
countries of Europe which have
any commercial character have
been similarly affected; Germany
most prominently, but France to a
significant extent +; and if we Car
nv our survey to the regions OF
South America, to midland even
to cur Australian colonies, we shall
be met by a painful iteration OF
the same tale of bad times, though
different reasons Lay be assigned
in different parts of the world for
the result. 1t will probably be ad-
mitted that the low prevailing
rate of interest and the contrac-
ton of industry are connected to-
gether as effects of the same cause
"a decline in profits-though
the unsettled political condition of
Eastern Europe has had some in
fluence on the interest of money.
There is at all times a class
among US saving money and look
ing out for modes of investing it.
The amount saved in the course OF
a wear varies considerably with
the variations of trade, but some
thing. and that not an inconsider-
able amount, is saved in the worst
wears. Of late years considerable
lnroportion of the amount saved
I has found employment In the new
lloans which have been continuous
Nv launched in our markets on be-
half of American railways and OF
struggling States. The decline of
trade in the United States has
caused or precipitated a failure in
the payments of interest on exist
ing railway securities, and 1t has
become impossible to introduce
any more prospectuses for the de-
yelopment of railways, while the
bankruptcy of Turkey, the threat
ened bankruptcy of Egypt, and
unsettled relations to theEast have
kept the Bourses clear of proposals
for State loans. The single appar-
emit exception-that of Egyptian
Ioan-served by its failure to
prove the general rule. Those
thrifty persons who save money,
and with all their thrift are temp
ted by the high interest of these
classes of uiities, are for the
present frightened. They there
lore keep their new savings un-
employed, to the depression OF the
rate of interest, which would have
been depressed even If Turkey
had not put itself outside the pale
of possible borrowers. But the
! contraction Of trade consequent
on decline of profits is the chief
cause of the accumulation of
money, and the real question is
why have profits declined. The
new fields of industry on which
the Edinburgh Reviewer descant-
ed remain open, but the profits OF
capital in them seem to have fallen
off. or, at all events, are not remit
ted home to the capitalist. 1t is
nhv;ons apouph that the imme-
diate profits Of the employment OF
capital in the Western States OF
America have been over estimated
or rather that their capacity or
sustaining high rates of profit was
over estimated. This is shown Dy
the falling off upon the return OF
the capital which has been sunk
in industrial enterprises, such as
railways in those States. People