New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-06-23
THE ROAD TO. PROSPERITY.

1t is popular to say pleasant things. With
| the journalist, whose success ever depends
| upon public appreciation, the temptation is
| strong to say that which will please rather
than that which is true This temptation Is
| peculiarly strong in respect to the treatment
of business questions at time when the COM
| mercial world is embarrassed and anxious.
To-day, for example, many journalists are
tempted to take hopeful view of the sltua-
ton, because they know that such utterances
will meet with especial favor. 1t is a little
unfortunate, however, that the press, as
| whole, has been taking a hopeful view OF
| things ever since the failure OF Jay Cooke in
! 1878. Not to refer to daily journals, even
those weekly papers which devote most atten-
ton to financial matters, and which may be
supposed to utter the coolest and most delib-
crate judgment of trained observers, have
fall n before the same temptation. Thus The
Financial Chronicle, a paper justly regarded as
high authority, which we often have occasion
to mention with credit, observed on the 18th
of September, 1873, that the thoughtful man
"will see many gratifying indications OF hrm-
"pess and strength in the financial situation"
| On the Goth it saw no reason TO believe that
| the JAY Cooke panic would be long or dsas
| trOus, and observed that since the close OF
"the war there has never been a time when
our mercantile community have been in
"better condition than now. Their engage
"ments are lighter than the average OF several
"years past, and every department OF bust
"ness is unusually prosperous" On the 9th
it said: ave may look to see a reaction set in
"early next week" On the 4th of October it
concluded that the panic may be said to be
cover" These quotations are made, not with
a view of criticising the leading financial jour
. nal in this country, but to call attention to
habit into which all who write or speak about
commercial affairs in times of disaster arc
prone to fall.
Ever since the failure of Jay Cooke it has
been popular to believe and to say that the
worst was over, and that better times were
lst ahead. Every Winter we have heard Of
the fine prospect of revival of business in the
Spring, and every Summer of the good times
coming in the Fall. Has all this habitaal
self-deception done any good7 On the con-
trary, it has probably prolonged and intensified
the disaster. 1t has encouraged men to cling
to unnatural prices, and to resist the decline
through which only genuine restoration could
come. 1t has encouraged wOrkmen to resist the
| reduction of wages, and retail dealers to insist
upon the broad margins of profit customary
during and after the war. 1t has induced
| bankr,lpts to hold on with desperation, and
heavy debtors to continue borrowing more and
more, in the hope that n turn of the tide
might save them from loss. Is it not plain
that, if we had known in 1873 what sort of
trial was before us, what shrinkage of values,
reduction of wages, decline of consumption,
wedding out of weak firms must precede re-
yival of business men would have adjusted
their affairs without delay to the new condi-
tions, and the real and permanent revival
would long ago have begun? But we have
fed on hope, diet pleasant but not nutri-
| tous.
1t is high time to deal with the hard facts Of
our situation. Much has been done to prepare
the way for more healthy industry and trade.
| But much has not been done. In many
branches of business retail prices, and in some
wholesale prices, are still far above the normal
level. Certain classes of labOrers still insist
upon war wages, though thousands seek en-
ployrnent in vain. The great coal combination,
| instead of encouraging consumption and pro-
duction in other branches of industry by re-
ducing prices, orders the mines closed to pre-
vent decline. In many branches of trade
there are altogether too many persons engaged,
and some Of them must be squeezed out before
there can be room for healthy activity on the
part of those that RENAME Thousands of firms,
| speculative or legitimate, have failed. But the
commercial world is still kindly carrying others
whose debts are heavy burden, and whose
opportunities or abilities do not warrant the
sacrifice made in bearing their burdens.
These are changes with which individuals
must DEAL 1t can only do harm to insist that
no such changes are necessary, and that good
times may come without them, as If refreshing
rain were to fall from cloudlcss sky. But it
is equally foolish to ignore the fact that the
financial misconduct Of the Government has
done much TO cause'delay. We have no right
to expect permanent revival of industry and
trade upon a healthy basis until we have at
least placed the country surely on the road
toward specie payments. There are many en-