The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1876-09-13
THE BUSINESS OUTLOOK.
Returning Eonddence--RevivinK KETrade.-
Wow of tho Situation.

THE BUSINESS OUTLOOK.
Returning Eonndence--RevivinK..T ..Trade--A
View of tho Situation.
In few weeks three years will have
elapsed since the breaking out OF the
panic OF 1873. The fictitious rise II
values enabled those holding merchan
disc, stocks, mills, manufactures an6
real property to borrow largely from
capitalists and corporations. In many
cases these stocks and properties were
mortgaged to the extent of seventy-hve
per cent. OF their then estimated value,
In point of fact the actual increase o1
national wealth during these three pros
porous yeals amounted only to the sur
plus produced each year, which WAS ut
terly insignificant when compared with
the great increase in all values through
out the country. Meantime an enormous
amount of indebtedness was piled up.
The crisis of 1873 was simply an awak-
ening of the whole community to the
actual state OF affairs. Every one de-
sired to realize; every one desired to be
paid. Values receded much more rap
idly than they had advanced. Conf
dence was destroyed, and very justly so,
as it became patent that q heavy per-
centage Of those indebted were utterly
and hopelessly bankrupt. Their mar
gins and equities were destr Dyed by the
depreciation of the stocks, merchandise
and real properties, which had, under
other conditions, formed the basis of
their supposed wealth. The major part
of these people put off the day of reck.
oning as long as possible, and hence it
is that the number of failures increased
30 steadily during the three years of
disaster we have just passed through.
What percentage Of these failures are
fraudulent it is difficult to say; but that
numerous unscrupulous debtors avail
themselves of the facilities which are
afforded by generous creditors to rid
themselves of indebtedness, and start
afresh with the capital of their victims,
is beyond a doubt. Experience of this
kind tends to infuse a greater element
of caution in future business transac-
tions, which is much to be desired in
this community. It would seem from
the semi-annual statement OF Dun, Bar
low & Co., showing the number Of fail
ures throughout the United States and
Canada, for the first two quarters OF the
present year, that the number of fail
ures and the volume of liabilities is very
much on the decline. They eliminated
with the last quarter of 1876,
when they reached $40, 600, 900, declin.
ing during the first quarter of 1876 to
1854, ,000, 600, and during the second quar-
ter to $43, 900, 900, showing decline Of
$21 200, 900 over the first quarter of
1875 and a decline of $27, ,0OO,00 over
the last quarter OF 1876. During the
last three years, while failures were tax.
ing place in every direction, almost all
business has been transacted on steadily
declining values, and, consequently, at
a loss. More than three quarters of the
weak brethren have iquidated by bank
ruptcy. 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 econo-
my has prevailed in almost every house
hold, with almost every individual, since
the fall of 1873.
The great falling off Of our foreign
imports denotes one phase Of this
economy. The foreign imports at the
port Of New York alone fell from 1920,
1856, 032 in 1873 to 1896, ,O9O,8 1852 in 1874,
to 1867, 1858, ,908 in 1876, and to 1906,
743, ,3G6 in 1876, for the fiscal years end
ing June 80. New York transacted in
1874 ffty-seven per cent. OF the foreign
commerce (imports and domestic e1-
ports) of the whole country. In three
years the imports at this port alone have
declined to the extent of $113, ,641, ,666,
ind further decline will undoubtedly
be established during the current year.
While people have bought sparingly Of
all descriptions of manufactured. goods
the cost OF production has been greatly
diminished. The farmer is in want Of
everything known as "store goods. I"
His.crops have been abundant during
the last four years. The production has
been large and greater area has been
planted. The sources Of the country's
agricultural wealth are rapidly increas-
ing. AS o single instance Of this in
crease the corn production of Kansas
grew from sixteen millions Of bushels in
1874 to eighty millions in 1875. In q
word, all these above enumerated facts
combined have had the effect of reviv-
ing confidence among merchants, manu-
facturers, builders and traders. The
public have come to the conclusion that
the period Of depression has passed and
is about to be succeeded by period Of
activity and prosperity. The rebound
will not be sharp or quick, nor should
we desire that it should be. With the
early fall we may confidently look for
very considerable change for the bet
ter in all branches of business. .-Net0
York Herald.