The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-13


Ina few weeks three years will have elapsed
since the breaking out of the panic of 1873.
The fictitious rise in values enabled those
holding merchandise, stocks, mills, manu-
features and real property to borrow largely
from capitalists and corporations. In many
cases these stocks and properties were mort
gagged to the extent of seventy-fve per cent
of their then estimated value. In point OF
fact the actual increase of national wealth
during these three prosperous years
amounted only to the surplus produced
each year, which was utterly insignificant
when compared with the great increase in
all values throughout the country. Mean
time an enormous amount of Indebtedness
was piled up. The crisis of 1873 was simply
an awakening Of the whole community to
the actual state of affairs Every one
desired to realize; every ono desired
to be paid. Values receded much
more rapidly than they had advanced.
Confidence was destroyed, and very justly
so, as it became patent that heavy per-
centage of those indebted were utterly and
hopelessly bankrupt. Their margins and
equities were destroyed by the depreciation
of the stocks. merchandise and real proper
ties, which had, under other conditions,
formed the basis of their supposed wealth.
The major part of these people put off the
day of reckoning as long as possible, and
hence it is that the number of failures in
creased SO steadily during the three years
of disaster we have just passed through.
What percentage of these failures are fraud
ulent it is difficult to say; but that numer-
Gus unscrupulous debtors avail themselves
of the facilities which are afforded by gen.
erous creditors to rid themselves of indebt-
edness, and start afresh with the capital
Of their victims, is beyond doubt.
Experience Of this kind tends to in
fuse greater element of caution in
future business transactions, which is much
TO be desired in this community. I. would
seem from the semi-annual statement of
Dun, Barlow Il Co., showing the number of
failures throughout the United States and
Canada for the first two quarters of the pres
ent year. that the number of failures and the
volume Of liabilities is very much on the
decline. They eliminated with the last
quarter of 1875, when they reached
SIC, 900, 900. declining during the first quar-
ter of 1876 TO s64. 600, 900, and during the
second quarter to S43 900, 600, showing a
decline of $2l, OO0, 900 over the first quarter
of 1876 and decline of s27, 900, 600 over the
last quarter of 1875. During the last three
years, while failures were taking place in
every direction, almost all business has been
transacted on steadily declining values, and,
consequently, at loss. More than three
quarters of the weak brethren have liqui-
dated by bankruptcy. An immense mass of
individual Indebtedness has been actually
paid in hard cash, while fully nine-tenths
of the outstanding Indebtedness is amply
secured. taking even present low prices as
the standard of value. Forced economy has
prevailed in almost every household, with
almost every individual, since the fall of
1873.
The great falling of of our foreign i'm
ports denotes one phase Of this economy.
The foreign imports mt the port ofNew York
alone fell from $500, 1856, 032 in 1873 to
1896 OAO, $50 in 1874, to 1857, 35S, 9OS in 1875,
and to S3O6, 743. 1866 in 1876, for the fiscal
years ending June 30. New York transacted
in 1874 fifty-seven per cent of the foreign
commerce imports and domestic cxports) Of
the whole country. In three years the i'm
ports ut this port alone have declined to the
extent of $ll3, &C., and further decline
will undoubtedly be established during the
current year. While people have bought
sparingly of all descriptions of man
ufactured goods the cost Of pro-
duction has been greatly diminished.
The farmer is in want of everything known
as ''store goods" His crops have been
abundant during the last four years. The pro-
duction has been large and greater area
has been planted. The sources of the coun-
try's agricultural wealth are rapidly increas-
ing. As q single instance of this increase
the corn production of Kansas grew from
sixteen millions Of bushels in 1874 to eighty
millions in 1875. In word, all these above
| enumerated facts combined have had the
effect Of reviving confidence among mer-
chants, manufacturers, builders aud traders.
The public have come to the conclusion that
the period of depression has passed and is
about to be succeeded bya period of activity
and prosperity. The rebound will not be
sharp or quick. nor should we desire that it
fdently look for very considerable change
for the better in all branches Of business.
| Pulpit Topics To-Day.
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